The Western Union Company (WU) investor relations material

Macroeconomic and business environment

• Americas business faced pressure post-2024 elections, but signs of stabilization and moderate growth are emerging, especially in key corridors like Mexico, Guatemala, Nicaragua, and Colombia.

• Retail transactions remain stable, with some return to growth and continued resilience in customer behavior despite global challenges.

• The introduction of a 1% cash remittance tax had no material negative effect, as improved debit acceptance drove double-digit growth in new retail customers, 80% of whom used debit cards.

Competitive landscape and strategic initiatives

• Competitive dynamics have shifted, with pricing strategies being reevaluated and a focus on sustainable transaction-to-revenue spreads.

• The acquisition of Intermex aims to strengthen the U.S. distribution triangle, add owned and independent locations, and expand corridor reach and product offerings.

• Exclusive deals with major agents like Kroger, Vallarta, and Canada Post are expanding the network and driving incremental volume.

Margin management and operational efficiency

• Margin pressure in Q1 was attributed to seasonal and one-time factors, with profitability expected to improve in Q2 and Q3.

• The business is shifting toward digital and payout-to-account services, which offer attractive margin ratios but lower contribution per transaction, necessitating fixed cost management.

• A $150 million efficiency program is being accelerated from five years to three, with increased automation, regionalization, and AI adoption planned over the next 12–18 months.