Western Union Sees Drop in Cash Transfers

Western Union has reported a noticeable decrease in cash transfers from immigrants in the U.S. to various countries, including Mexico, El Salvador, Peru, and Ecuador. This decline has been significant, illustrating a shift in customer behavior.

According to CEO Devin McGranahan, recent policy changes have created an environment of fear among immigrants, leading to fewer border crossings and increased enforcement actions, like workplace inspections and deportations. He emphasized that these factors are affecting the company’s operations.

As a well-known money transfer service headquartered in Denver, Western Union noted a 12% drop in revenue across its U.S. operations in the third quarter alone. This revenue decline aligns with a trend that began earlier in the year.

Countries receiving remittances from the U.S. typically see substantial financial support. For instance, remittance figures for 2024 show Nicaragua at $373.5 million, El Salvador at $8.479 billion, Peru at $4.945 billion, and Ecuador at $6.54 billion. Notably, India received the highest amount, totaling $135.46 billion.

All these remittances provide crucial aid to these countries, especially when viewed against the roughly $80 billion in direct foreign aid the U.S. offers annually.