WU and dLocal Drive Digital Remittance Expansion in Latin America

The Western Union Company WU recently teamed up with the renowned payments platform, DLocal Limited DLO. The collaboration is focused on integrating modern digital payment methods into Western Union’s online platforms across several Latin American countries. 

The objective of this alliance is to offer Western Union customers a faster, more seamless payment experience that aligns with local behaviors and preferences. It will integrate locally relevant and alternative payment options— such as real-time bank transfers, card payments and e-wallets—into Western Union’s digital platforms. The rollout will commence in countries such as Chile, Mexico, Peru, Panama, Argentina and Brazil, with strong prospects for further regional expansion.

This partnership enhances the range of payment choices available to remittance customers, allowing them to manage international transfers with increased autonomy and flexibility. 

Moreover, the recent initiative seems to be a time-opportune one since there has been a growing inclination toward digital remittances across Latin America. Such remittances also help lower transaction costs, which actually provides the ground for Western Union’s powerful digital platform to capitalize on.

Benefits of the Recent Move to WU

Partnerships similar to the latest one are in line with Western Union’s global digital expansion strategy. Integration of modern digital methods within WU’s online channels is expected to bolster the digital money transfer services suite and result in greater utilization of such services. As a result, it is expected to attract a higher number of customers to the company, which in turn may boost its digital money transfer revenues in the days ahead. 

Apart from offering varied money transfer choices to Latin America, Western Union’s keen eye to strengthen its presence in the region can also be reflected through the latest move. 

Several tie-ups with financial service providers and substantial investments pursued over the years have strengthened WU's ability to build a powerful digital platform. The platform's strength makes it the preferred partner for conducting money transfers across every corner of the globe and driving digitization in emerging markets and underserved areas.

WU’s Share Price Performance & Zacks Rank  

Shares of Western Union have gained 4.7% in the past month compared with the industry’s 2% growth. 

WU currently has a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Some better-ranked stocks in the Business Services space are Duolingo, Inc. DUOL and APi Group Corporation APG. While Duolingo currently sports a Zacks Rank #1 (Strong Buy), APi Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Duolingo outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 25.51%. The Zacks Consensus Estimate for DUOL’s 2025 earnings implies an improvement of 66% from the year-ago reported figure. The same for revenues also implies growth of 36.2% from the prior-year reading. The consensus mark for DUOL’s 2025 earnings has moved 7.6% north in the past 60 days. 

APi Group’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 4.34%. The Zacks Consensus Estimate for APG’s 2025 earnings implies an improvement of 15.5% from the year-ago reported figure. The same for revenues also implies growth of 9.3% from the prior-year reading. The consensus mark for APG’s 2025 earnings has moved 3.6% north in the past 60 days. 

APi Group stock inched up 1.3% in the past month. However, shares of Duolingo have declined 18.6% in the same time frame.  

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This article originally published on Zacks Investment Research (zacks.com).

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