The Western Union Co. WU is likely to remain affected by the recent COVID-19-led business losses. The company being the biggest player in the remittance market is anticipating a revenue erosion as the remittance market expanse is expected to shrink.
At the end of April 2020, the World Bank issued a forecast projecting a 20% decline for current-year global remittances. This cutback in remittance is likely to weigh on the company’s revenues from the Consumer to Consumer (C2C) segment. The latest forecast for 2020 global remittances varies from a decrease of 3.5% to 20%.
This shrinkage in the global remittance market will put pressure on revenues from the company’s C2C , which accounts for 85% of the company’s revenues. In the first quarter of 2020, revenues from the segment dipped 3% year over year.
Though Western Union is ramping up its digital remittance platform, it reflects nearly 15% of