Western Union, Angola Post Office Join to Expand in Africa

World’s leading money transfer company Western Union Co. (WU) announced that it has tied up with the Angola Post Office, which provides postal and financial services in South Africa.

Angola post will act as an agent for Western Union, which intends to provide its money transfer services in the country. Western Union has tied up with the post office since the latter will provide a ready customer base. Moreover, banking is becoming a habit in Angola with financial services gaining popularity.

Western Union also has presence in other African countries of Ghana, Kenya and Uganda, Nigeria, Namibia. The bank also provides remittance service in the region through banks and the Internet. Its services can also be availed on mobile phones.

In Africa, Western Union has been operating for over past 15 years through a vast network. Africa is a growing economy in the global market, and such easily accessible services and product offerings are essential for competing in this space. Thus, Western Union continues to look for ways to spread out its business and services based on consumer needs in the region.

Another company, Moneygram International Inc. (MGI) provides money transfer service in the region.

Other than Africa, Western Union has an active presence in Asia, Europe, Latin America and generates a significant chunk of revenues from overseas business.

The company is also expanding its new age technology offerings such as remitting money online through computers and mobilephones, bank accounts and prepaid cards.

Western Union carries a Zacks Rank #3 (Hold). Other better ranked players include Green Dot Corp. (GDOT) and Vantiv, Inc. (VNTV). Both these stock sport a Zacks Rank #1 (Strong Buy).

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