Western Union brings the concept store concept to Africa with a new outpost in Morocco.
The money transfer service was announced the store – its first on the continent – on Wednesday (June 26), saying it was part of Western Union’s “Evolve 2025” strategy for Africa and Morocco.
“The country and the wider continent play a critical role in our growth strategy thanks to their dynamic markets and significant remittance flows.” Mohammed Touhami el OuazaniWestern Union’s regional vice president for Africa, said in a press release.
“Morocco is an important inbound market in Africa, with loved ones receiving international money transfers from around the world, including the United States, France, Spain, Italy, the United Arab Emirates and the Kingdom of Saudi Arabia,” he added.
The statement added that Morocco is a “crucial” remittance hub, with the country receiving about $12 billion in inflows last year, making it Africa’s third largest remittance market.
“These funds represent a vital source of income for many Moroccan families and are a critical component in the foundation of the country’s economy,” the company said. “Remittances contribute about 8% to Morocco’s GDP.”
To facilitate these transfers, the company introduced the concept store, originating in Europe, where it now has at least 100 such locations. These stores are places “where nothing is left to chance in terms of service and branding”. Nikolaos MandalasWestern Union’s director of communications for Europe told PYMNTS.
“The customer interacts with agents who know the service well — and since we serve diaspora communities, quite often they come from those communities,” he said. “So they can offer better, personalized service to customers they often know and have served for years, offering a premium experience and more service options.”
Western Union said in April that its earnings showed continued shifts to digital channels to send money across borders, with the company’s branded digital transactions growing 13% year-on-year.
CEO Devin McGranahan told analysts on a conference call that the 6% growth in consumer money transfer transactions marked the third consecutive quarter with transaction growth of 5% or higher. He also noted increased use among immigrant communities.
“Our research would show that many migrants start their remittance journey in a retail environment for a number of important reasons. Given the likely future continued growth and migration around the world, we believe macroeconomic trends support the fact that we can indeed stabilize our retail business while simultaneously growing our digital and consumer services businesses,” said McGranahan.