Western Union's Business Is Facing More Pressure

Western Union's performance in recent years has been weak, which we think has played into the idea that the company is being disrupted by newer players. But we continue to believe Western Union has a narrow moat based on its sizable scale advantage, but the amount of value the moat will create could be questioned. Additionally, in the near term, political headwinds in the US will likely offset any underlying improvements the company is making. The current administration's aggressive efforts to reduce immigration are having a material impact on money transfers.