Western Union Faces Competitive Pressure, Stock Down 58%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
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Source: NASDAQ.COM
- Increased Competition: Western Union's stock has declined nearly 58% over the past five years, primarily due to emerging fintech companies and blockchain networks offering low-cost instant payment services, which have pressured traditional payment operations.
- Revenue Decline: As of the first three quarters of 2025, revenue from Western Union's consumer money transfer business has fallen 8% year-over-year, representing 85% of total revenue, indicating ongoing weakness in its core business.
- New Business Growth: Despite challenges in its traditional operations, Western Union's newer consumer services division has seen revenue rise nearly 50% during the same period, enhancing its competitive position through multiple payment options.
- Improved Financial Position: The company's cash decreased from nearly $1.5 billion at the end of 2024 to $948 million by Q3 2025, yet it made $500 million in principal debt repayments, demonstrating that operating cash flow is sufficient to cover its ultra-high dividend yield.
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Analyst Views on WU
Wall Street analysts forecast WU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WU is 9.00 USD with a low forecast of 7.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
0 Buy
7 Hold
4 Sell
Moderate Sell
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
About WU
The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments. Its segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from its retail agent and owned locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The Company provides its services primarily through a network of agent locations in more than 200 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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