Western Union Looks to Stablecoins to Capitalize on $1 Trillion Remittance Market

Shares of

(WU) jumped more than 9% in October after the company posted its third-quarter 2025 that surpassed analyst forecasts, fueled by strong performance in its consumer services division and targeted investments in stablecoin technology. As a leader in global remittances, the company is now to update its cross-border payment processes, with the goal of lowering expenses and speeding up settlements. This strategy mirrors a wider industry movement as stablecoin usage accelerates, with worldwide transaction values reaching $4 trillion in August 2025, marking an 83% increase from the previous year.

Western Union's

revealed a 49% annual jump in consumer services revenue, largely driven by its travel money offerings and bill payment services in Argentina. The digital business under its brand also experienced a 7% revenue uptick, though its main consumer money transfer (CMT) segment dropped 6% due to challenges from U.S. immigration policies. In spite of these obstacles, Western Union kept its operating margin at 19% and reaffirmed its full-year revenue outlook of $4.035–$4.135 billion.

The company's shift toward stablecoins is a calculated response to changing market needs. "We're piloting stablecoin-based treasury solutions to speed settlement and cut costs," CEO Devin McGranahan stated in a

. This move builds on Western Union's 2022 crypto-related trademark applications and follows in the footsteps of competitors such as MoneyGram, which rolled out instant remittances in Colombia through Crossmint, and PayPal, which launched its PYUSD stablecoin, as highlighted in a .

On a global scale, stablecoin usage is rising quickly, especially for B2B payments. An

found that B2B stablecoin transactions have grown 113% since February 2025, now totaling $6.4 billion each month. The U.S. and Singapore together made up 37% of global stablecoin flows, indicating that adoption is expanding beyond just emerging economies. At the same time, identified India and the U.S. as leading markets for crypto adoption, with South Asia seeing an 80% year-over-year surge in crypto activity.

Clearer regulations are also helping drive stablecoin growth. The U.S. GENIUS Act, passed in 2025, created a national regulatory structure for stablecoins, while the European Union's MiCA rules introduced new transparency standards. Western Union’s stablecoin initiatives seem well-timed to benefit from these regulatory shifts, as

in 2025, and Circle’s USDC increased its market share from 14% to 21%.

Nonetheless, obstacles persist. Western Union’s U.S.-Mexico remittance volumes fell 3% in Q2 2025 due to tougher immigration enforcement, and the company faces new competition from

via its parent, Early Warning Services. that Zelle’s expansion, supported by major U.S. banks, could further disrupt traditional remittance providers by offering nearly instant, low-fee transfers.

Western Union’s stock has dropped 16% so far this year, reflecting broader doubts about its future growth prospects. Still, company insiders remain optimistic, with CEO McGranahan and CFO Matthew Cagwin purchasing $1.5 million and $146,300 in company stock, respectively. In the first nine months of 2025, the company also returned $430 million to shareholders through dividends and share repurchases.

Looking forward, Western Union plans to use stablecoins to improve its omnichannel customer offerings and win back market share in important corridors. "We believe stablecoins will play a critical role in the next era of digital payments," McGranahan said in August. With the global stablecoin market expected to reach $1 trillion within three years, Western Union’s future success will depend on its ability to innovate while staying compliant and competitive.

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