In a world of Venmo, Zelle, and a plethora of other digital payment options, old school money order businesses are at risk of extinction. Leadership at two of the biggest players in this space, Western Union and MoneyGram, are well aware of the digital disruption at play and are scrambling to beef up their digital capabilities. According to a report by PaymentsSource this week, both companies tried to soften the blow of revenue declines with discussion of digital growth during recent earnings calls. The question is whether their transformations are too little too late.
At this point, Western Union and MoneyGram are already seeing their transformative efforts reflected in their financial statements. But their battle is far from over, and both firms must decide how they will juggle the balls of customer acquisition, transaction volume, and revenue flow in the digital era.