The money transfer service is heading to Blockchain technology
There was a short video that was released recently by Western Union in which the money transfer company explained that it will be working with cryptocurrencies. In the video Western Union challenges the innovation that the Blockchain technology brings to fully understand its capabilities and the cryptocurrency application.
The news was released on December the 7th, by the President of Western Union Global Money Transfer, Odilon Almeida. He announced that the company is fully prepared to work alongside cryptocurrencies in order to secure all international payments.
According to Odilon Western Union is ready to use the maximum capabilities of the Blockchain technology together with cryptocurrencies for its new projects. The company has mentioned that it has been specialising in international payments for decades and knows how the markets work.
Odilon also added that:
“Cryptocurrencies can be another widespread option to ensure the exchange of values between people and countries, and if this happens, we are ready for the launch.”
He thinks that the impact of its projects will not have an immediate effect on the markets however, since the crypto industry is still at its early stages of development. The technology still faces a number of problems that is quite common in the money transfer payment system industry.
The problems are mostly based on volatility, the management and the compliance of money transfers. Almeida has expressed a lot of optimism however about the fact that Western Union will contribute to the overall problems that exist in the financial payment system. The company is willing to allocate significant resources to solving these problems ahead.
He has made an introduction to cryptocurrencies on the platform as a payment option, for customers and has stated that:
“Western Union today is ready to accept any currency. We already have 130 currencies. If one day we realise that the game is worth the candle, then from a technological point of view, this will be another currency.”
Western Union is in experiments with the Blockchain Technology
The Blockchain technology brings the possibility of exchanging information about trades in an efficient and very effective way, one that the corporation has never seen before. The potential applications for the financial service sector is broad, and Western Union is mostly interested in investing and finding those that best fit its platform.
In accordance with this, there was a recent partnership with WU and Ripple Labs in order to test whether sending payments with the Blockchain was faster and less expensive. The company has stated that these tests are still in progress with some positive results.
Back in June the company’s CEO Hikmet Ersek mentioned that Western Union will not be joining the cryptocurrency space until these currencies have become more widely adopted. However, the test that have been done with Ripple Labs have not been able to show enough benefits with the Ripple distributed ledger during a six-months of trial.
The Cooporation has generated revenues of over 1.4 Billion in its third quarter, which was a declined by 1% compared to the previous year with a 3% increase in its currency base. The consumer-to-consumer (C2C) revenues were flat on a constant bases which represents 80% of the companies total revenue in that period. While transaction volumes grew to almost 4%, with a constant currency growth of 2%.
According to reports from Western Union geographically there is a constant currency revenue growth that was led in countries like North America, Latin America, Europe and in the Middle East, Africa and Asia Pacific.
The company thinks that it is better equipped to solve these problems, because WU is already moving money across 130 currencies worldwide and has dedicated substantial resources to all these challenges that the money transfer system faces today.
The cooporation has been testing with Ripple since 2015
The tests have been going on with Ripple for a few years now, with Ripples cross-border payment technology. The CEO Hikmet has stated that the tests with xRapid were early in development and therefore could not draw a conclusion of the final requests.
The company has been transferring digital fiat money for years now and expects the Blockchain Technology and cryptocurrency to be integrated smoothly into its existing system.
What do you think of this move by Western Union to the crypto space? Please feel free to leave a comment down below.