The iconic money transfer business, Western Union (WU 1.02%), has struggled in recent years, as many legacy businesses do amid a changing landscape. The payments space has become increasingly competitive with the emergence of new fintech companies and blockchain networks that offer consumers and businesses many new ways to instantly transfer money at a lower cost.
Western Union's stock is down close to 58% over the past five years. Quarterly revenue and net income have also trended in the wrong direction:
Data by YCharts.
That said, the stock is cheap, and Western Union's dividend now yields over 10%. Is Western Union stock a buy, sell, or hold?
Although much uncertainty remains, there is a potential story here
Western Union's largest business is consumer money transfers, which allow people to use the company's various payment products to send money globally, with funds settling in minutes. Western Union's network includes locations in 200 countries and through many different websites.
Image source: Getty Images.
However, there are fees involved in these transactions. Meanwhile, there are now more payment transfer options than ever before, and many have low or no fees. Through the first three quarters of 2025, revenue in the company's consumer money transfer business has fallen 8% year over year. This business has made up about 85% of total revenue so far in 2025.
However, it's not all bad because Western Union's newer consumer services division has seen revenue rise nearly 50% year over year in the same time frame.
This business leverages multiple payment options, including Western Union's physical agent locations, digital wallets, and prepaid cards, among others, to allow consumers to send money internationally and even pay certain bills in certain countries. Western Union is also launching its own U.S. dollar stablecoin on the Solana blockchain network.
NYSE: WU
Key Data Points
While cash at the company fell from nearly $1.5 billion at the end of 2024 to $948 million at the end of the third quarter of 2025, Western Union made $500 million in principal payments on its debt, which were still close to $2.6 billion at the end of the third quarter.
Additionally, operating cash flow at the company through the first three quarters of the year still looks to be easily covering the ultra-high dividend, and the company continues to buy back shares as well.
Ultimately, Western Union could be a deep-value turnaround play, trading at just 5 times forward earnings. But it's still early. The big question, in my mind, is how much more the consumer money transfer business will decline and whether the fast-growing but smaller consumer services business can truly pick up the slack and eventually help grow total revenue.
I think investors could continue to hold the stock for now or start with a small bite, and then monitor the company's progress.
