Banks are not the only financial institutions accelerating the move to digitise services in the wake of the pandemic. Western Union has upgraded its partnership with Australia Post, launching a digital transfer option to sit alongside the post office service that has operated for the past 17 years.
Western Union regional vice president of network, Oceania, Gregory Laurent, said the global remittance business suffered a modest decline of around 1.6 per cent last year but more of the business went online.
Laurent said Western Union has had a digital capability for many years but now it is making it available to more of its partners. Australia Post is the fifth national postal organisation to integrate Western Union digital money movement capabilities.
Money can be sent to a bank account or mobile wallet, as well as cash pickups at Western Union agents. The digital service reaches more than 75 countries.
Customers can use both channels, such as starting the money transfer online and completing it in-store.
Laurent said there was no plan to close the in-store service once the digital service is up and running and he did not anticipate that happening.
“We don’t see a digital-only future. Our success has come through our large network, including retail locations. Our goal is to expand access and we think omni-channel is a strength,” he said.
Laurent said he expects to see growth of about 2 per cent in remittance volumes this year.
“Border closures have not stopped money movement. Remittance is a lifeline for many people in low-income countries.”