Tim Chiodo's questions to Western Union Co (WU) leadership • Q3 2024
Question
Tim Chiodo inquired about the rollout of debit card acceptance at retail locations, asking about historical limiting factors and the margin profile of these card-funded transactions.
Answer
CEO Devin McGranahan stated that historically, the company lacked the infrastructure and merchant acquiring relationships for card payments. They have now invested to modernize the retail experience. CFO Matt Cagwin added that the economics are favorable; in Europe, lower interchange fees and savings on cash handling have actually reduced costs. While early in the U.S., they are optimistic the initiative will be accretive and help gain share where competitors already offer debit.