This report presents an analysis of market competition among remittance companies, with an emphasis on the performance of Western Union in the United States to Latin American and Caribbean corridors. It analyzes changes in competition since 2012 resulting from the evolution of market players as well as from external dynamics affecting one of the largest companies in the market. This report is based on field work research conducted at 30 money transfer agencies in five U.S. cities. It also includes data analysis of payment networks, transaction costs and other market performance indicators. The main findings in this report include the following:
- The development of the money transfer industry over the past 15 years has been accompanied by waves of consolidation and significant competition;
- Such trends have affected the strong market presence of large companies like Western Union and exposed it to external shocks;
- These dynamics signal a different competitive landscape that may require companies to devote additional attention to innovative approaches such as online, prepaid and mobile services.
