Adaptation of Global Cross-Border Payment Firms During the Pandemic
In the face of the global pandemic, the six leading companies in the money transfer industry - Western Union, MoneyGram, Ria, Remitly, WorldRemit, and TransferWise - have been adapting to the new normal. To understand their strategies and views on cash, digital, and growth during these challenging times, the CEOs of these companies were recently interviewed.
The chart below presents data on the transactions mixes across these leading players, providing insights into their digital and cash transaction ratios. For more granular data on pricing changes, interested parties are encouraged to reach out to the source.
One intriguing revelation is that a significant proportion of digital transactions also involve cash payouts. Cash, it seems, has been a critical component enabling digital growth, even before the pandemic.
TransferWise, with its stated goal of "Mission Zero" to make moving money free, may not reach that target, according to its CEO, Kristo Käärmann. He believes that it may require subsidies to achieve this vision.
Digital transactions, as defined across the industry, include those that start digitally, regardless of whether they end in cash or not. This broad definition encompasses a wide range of transactions, providing flexibility and adaptability in the ever-evolving digital landscape.
Pricing in the sector during the pandemic did not go to zero, as some might have anticipated. Early on in the pandemic, in March and April, pricing was lowered, but normal pricing strategies returned and have continued since.
The shares of increases and decreases differ by each pay-in and pay-out method. Over 80% of total transactions across the first five companies are cash transactions (weighted by company size).
Insights and data on sizes, key metrics for digital (such as revenue and customer counts), the differences in how digital is categorized for each company, and the value of cash payout networks are included in a Forbes column by Daniel Webber, who shared insights from the six companies and their CEOs.
The chart below shows significant price changes across the sector throughout the pandemic, offering a visual representation of the industry's resilience and adaptability during these challenging times.
For more data, interested parties are encouraged to speak directly to the source. The exact price changes reported by the CEOs of the six companies during the pandemic include: chocolate manufacturers increased prices by up to 50%; Tchibo planned price increases of up to one euro per pound of coffee starting February; US health insurers Centene decreased by -50.5%, Molina by -45.4%, Elevance by -25.1%, and United Health by -17.5% due to rising treatment costs; Humana increased premiums conservatively, showing a +5.2% change; Emmi raised prices in the US due to Trump tariffs leading to necessary price increases in cheese exports.
The CEOs' interviews, along with the data presented, offer a comprehensive view of the six leading companies in the money transfer industry and their strategies for navigating the challenges of the pandemic.
