Western Union tests stablecoin payments for global money transfers

Western Union announced a pilot program embracing stablecoins to expedite cross-border transfers, aiming to reduce costs and enhance transparency for its 150 million customers. Devin McGranahan, Western Union CEO, stated that stablecoin adoption utilizes blockchain technology to replace outdated banking systems, providing faster, cheaper, and more transparent transfers.

McGranahan further claimed that there are essential development prospects when stablecoins are converted to fiat and made available as a store of value in unstable economies. During the Q3 2025 Earnings Call, McGranahan cited instances such as enhancing financial inclusion for the unbanked and safeguarding savings in countries like Argentina and Venezuela, which are experiencing high inflation.

Western Union embraces stablecoins for global transfers

The money transfer giant processes approximately 70 million transfers every quarter. McGranahan said Western Union views blockchain technology as a means to assist consumers in more than 200 countries. He emphasized that the passage of the GENIUS Act has reduced the initial reluctance to embrace cryptocurrency due to its volatility and regulatory concerns.

Western Union highlighted how an increasing number of institutions are adopting stablecoins. As to the U.S. Treasury Department’s declaration in April, this market is expected to reach $2 trillion by 2028, having recently reached $300 billion. Western Union stated that customers of the stablecoin product, particularly those in countries affected by inflation, would have greater options and control over how they manage and transfer their money.

McGranahan claimed that since inflation and currency devaluation can quickly reduce a person’s purchasing power, owning an asset priced in U.S. dollars has actual worth in many regions of the world. He further emphasized that these developments align with the firm’s broader plan to update the financial system.

“We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust.”

–Devin McGranahan, President, Chief Executive Officer, and Director of The Western Union Company.

McGranahan said the current environment offers transparent paths for responsible crypto integration. He noted that  Western Union had previously been cautious about adopting digital assets. McGranahan emphasized that the strategic shift toward a blockchain-based remittance system is a departure from Western Union’s generally cautious approach to cryptocurrencies. The CEO confirmed that the strategy originated from concerns about client protection, regulatory ambiguity, and market volatility. 

Western Union expands digital wallet and blockchain strategy

Western Union has been introducing digital wallets and updating its technological stack in seven nations, most recently in the U.S. and Brazil. The firm said that it has onboarded more than 500,000 wallet users, with Brazil approaching 5% and Argentina approaching 15% of inflows recorded in wallets less than a year after debut.

McGranahan said the modernized payments network and digital wallet infrastructure offer the fundamental capabilities for speeding digital asset strategy. He noted that digital components are currently used in more than 55% of all Western Union money transactions, either through digital start or digital payout. 

The money transfer giant reported that third-quarter adjusted revenue was $1.03 billion, down 1% when excluding the effects of Iraq. Its branded digital business had a 6% increase in revenue and a 12% increase in transactions. In the quarter, Western Union’s consumer services division, which currently accounts for around 15% of overall revenue, grew by 49%.

Western Union’s Consumer Money Transfer (CMT) segment revenue decreased 6% on both a reported and an adjusted basis, while transactions declined 7% and 2% compared to the previous period. According to the firm, the decrease in Iraq’s contribution was the leading cause of the revenue loss. Branded Digital revenue increased 7% on a reported basis or 6% on an adjusted basis, with transaction growth of 12% compared to the prior year period. The Branded Digital business represented 29% and 38% of the total CMT revenues and transactions, respectively.

McGranahan stated that Western Union’s Evolve 2025 plan showed consistent improvement in the third quarter.  He pointed out that, except for Iraq, Western Union has had positive adjusted consolidated revenue growth for two consecutive quarters and has maintained mid-single-digit transaction growth in its Consumer Money Transfer division for five straight quarters.

McGranahan revealed that Western Union will provide more information regarding its objectives for digital assets at its next Investor Day on November 6.

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