Western Union Acquires Travelex
- The P2P funds transfer specialist Western Union acquires Travelex Global Business Payments division created by Apax for almost one billion dollars. The world number one in funds transfers then strengthens its position on the BtoB segment.
- To this day, it has been managing 450,000 agents worldwide, enabling bill payments and funds transfers. The BtoC turnover represents one billion dollars, compared to 180 million for professional payments. Integrating Travelex’s activity would allow this figure to reach 400 million.
- Western Union will then optimise international credit transfers providing cash management services to the companies. The US-based company is competing with banks now seeking to widen their market beyond multinational corporations.
- Nevertheless, it will be using the same model based on commissioned agents which now characterises the P2P offer. Among these agents: 1,000 prescribing banks (BtoC transfers), plus 500 Travelex partner banks (BtoB transfers). Western Union intends to propose services for professional to any bank that would not be large enough to address international companies.
- Mc Kinsey assesses that the SME funds transfer market represents 24 billion dollars per year.