Digital Gains vs. North American Slump: Western Union's Crypto Push Faces Crucial Test

Western Union Co. (WU) reported third-quarter earnings that beat expectations, with digital services driving growth as the company accelerates its pivot toward blockchain and stablecoins. The stock edged up 0.4% in after-hours trading to $8.15 on Oct. 23, 2025, near its 52-week low, as investors weighed cautious optimism about its digital strategy against persistent challenges in North America, a TS2 Tech report.

The company posted $1.03 billion in revenue, flat year-over-year, with adjusted earnings per share (EPS) of $0.47, exceeding analyst estimates of $0.43, according to GuruFocus. While North American retail transfers slowed, digital and consumer services segments offset declines: branded digital revenue rose 7%, and consumer services surged 49% year-over-year, fueled by travel money and bill pay services, according to CryptoNews. Operating margins improved to 20% from 16% a year earlier, driven by cost cuts, Coinotag reported.

Western Union's digital transformation gained momentum through acquisitions and partnerships. In August, it agreed to acquire Intermex—a Mexican remittance giant—for $500 million, a 70% premium, to expand its Latin American footprint, FinanceFeeds reported. Separately, the company partnered with dLocal, a Latin American fintech, to embed local bank transfers, e-wallets, and cards into its digital channels, aiming to tap into the region's $161 billion remittance market, TheCryptoBasic reported.

The company's most significant shift, however, is its embrace of stablecoins. CEO Devin McGranahan told Bloomberg in July that stablecoins represent an "opportunity, not a threat," a MarketWatch story reported. This follows the passage of the U.S. "GENIUS Act," which provides regulatory clarity for stablecoin integration, according to Seeking Alpha. During its Q3 earnings call, Western Union announced a pilot program using on-chain settlements to reduce reliance on traditional correspondent banking, aiming to speed up transfers and cut costs, a Coinotag piece.

Analysts remain cautious. Wolfe Research raised its 12-month price target to $9 but maintained an "Underperform" rating, citing fierce competition from fintech rivals like Wise and Remitly. Citigroup echoed this, noting Western Union's low valuation (3–4× forward P/E) and 10–11% dividend yield but emphasizing the need for "durable growth in digital remittances."

Despite headwinds, Western Union's digital channels now account for over 40% of global transactions, with 55% of money transfers involving digital elements at either initiation or payout. The company's 2025 guidance projects adjusted revenue at the lower end of $4.035 billion to $4.135 billion, with EPS at the upper end of $1.65 to $1.75.

Competitors are also advancing blockchain initiatives. MoneyGram plans to launch a USDC-based app in Colombia, while Zelle's parent company, Early Warning Services, announced stablecoin integration for cross-border payments.

Western Union's pivot reflects broader industry trends. The U.S. Treasury estimates the stablecoin market, currently at $300 billion, could grow to $2 trillion by 2028, driven by demand for faster, cheaper cross-border transfers. For now, investors will watch whether the company can stabilize its North American business while scaling digital and crypto initiatives.