Western Union’s first-quarter financial results were impacted by macroeconomic volatility and geopolitical events affecting migration patterns, particularly expectations surrounding border control policies following the election of José Antonio Kast in Chile, according to comments made by the company’s CEO.
Devin McGranahan, President and Chief Executive Officer of Western Union, stated last week: “La volatilidad macroeconómica y los eventos geopolíticos que impactan la migración, particularmente las expectativas de control fronterizo tras la elección de José Antonio Kast en Chile, han ralentizado nuestros flujos en Sudamérica.” (The macroeconomic volatility and geopolitical events impacting migration, particularly the expectations of border control following the election of José Antonio Kast in Chile, have slowed our flows in South America.)
The remittance giant reported a 4.7% decline in results for the latest quarter, with revenues totaling USD $1.010 billion, bringing annual revenues to USD $4.100 billion. These figures fell short of some analysts’ prior projections. The company’s performance underscores the sensitivity of the remittance market to political and economic shifts.
McGranahan explained that stricter enforcement against irregular migration in key markets has particularly affected populations traditionally receiving money transfers, leading to a decrease in smaller, regular cash remittances to family members. “Observamos debilidad en los volúmenes de transacciones en América Latina, lo que impactó los ingresos generales,” (We observed weakness in transaction volumes in Latin America, which impacted overall revenue) added Matthew Cagwin, the company’s CFO.
Western Union, the largest company in the sector with a presence in over 200 countries, is also focused on its digital transformation efforts amid increasing competition from apps and regional banks offering low-cost transfer options. “Nuestro negocio minorista sigue enfrentando vientos en contra, particularmente en las Américas, mientras que nuestros canales digitales muestran un fuerte crecimiento,” (Our retail business continues to face headwinds, particularly in the Americas, while our digital channels show strong growth) McGranahan said. “Estamos comprometidos a acelerar esta transición y capturar participación en el mercado de remesas en evolución.” (We are committed to accelerating this transition and capturing market share in the evolving remittance market.)
During his 2025 campaign, President-elect José Antonio Kast announced a zero-tolerance policy towards irregular immigration, the expulsion of undocumented foreigners, the closure of border crossings in the northern macrozone, and restrictions on money transfers. These policies are now appearing to have a tangible effect on remittance flows.
Official data from the Central Bank indicates that outward remittances totaled USD $2.015 billion in 2024, marking the third consecutive year of decline. The majority of these funds were sent to Venezuela, Haiti, and Colombia.
