For millions of people around the world, sending and receiving money across borders is a regular part of life. Whether it‘s supporting family overseas, paying bills, or simply gifting money, reliable and accessible money transfer services are a must. And for many, that go-to service is none other than Western Union.
With over 500,000 agent locations worldwide, Western Union is one of the most widely available money transfer providers out there. And thanks to partnerships with major retailers like Safeway, sending money is now as easy as picking up your weekly groceries.
But is Safeway your best bet for Western Union transfers? How do their services and fees stack up to the competition? And what do you need to know before handing over your hard-earned cash? We‘ll cover all that and more in this ultimate guide to using Western Union at Safeway.
The Western Union Safeway Partnership Explained
First, let‘s dive into the details of how Safeway came to offer Western Union services. It all started in 2018, when Safeway‘s parent corporation Albertsons Companies struck a deal with Western Union to provide money transfer services across their 2,300 store locations.
This wasn‘t Albertsons‘ first foray into financial services – the company has offered money orders, check cashing, and coin counting machines at many of its stores for years. However, the Western Union partnership represented a significant expansion into the remittances space.
"Providing quick and convenient access to Western Union money transfer services for our customers is just one of the many ways we strive to serve the neighborhoods we operate in," said Mark Panzer, Senior Vice President of Pharmacy, Health & Wellness at Albertsons Companies, in a press release announcing the deal.
For Western Union, the partnership was a chance to significantly grow its retail presence in the US. "For more than 170 years, our global money movement and payment services have connected family and friends worldwide," said Odilon Almeida, Western Union‘s Global Money Transfer President, in the same release. "We are expanding access to our services with Albertsons Companies to provide greater choice and convenience for consumers in the US."
How Many People Use Western Union?
So just how big is Western Union‘s reach? The numbers are staggering. According to the company‘s latest annual report, Western Union completed 285 million customer transactions in 2021, moving a total of $85 billion in principal across borders.
While the company doesn‘t provide a breakdown of how many of those transactions took place at retail locations vs online, it‘s clear that a significant portion of Western Union‘s business still happens in physical stores. In fact, over 80% of the company‘s agent locations are outside of the United States, serving customers in more than 200 countries and territories.
Here‘s a look at some of Western Union‘s key stats for 2021:
| Metric | Value |
|---|---|
| Total revenue | $5.07 billion |
| Operating income | $930 million |
| Net income | $633 million |
| Consumer-to-consumer transactions | 273 million |
| Business solutions transactions | 12 million |
| Total customers | Over 150 million |
Who Uses Western Union?
So who are the millions of people relying on Western Union to send and receive money? While the company serves customers from all walks of life, studies have shown that certain demographic groups are more likely to use remittance services.
According to Pew Research, foreign-born individuals make up a significant portion of remittance senders in the United States. In a 2020 survey, 45% of foreign-born Hispanics and 26% of foreign-born blacks reported sending money abroad in the past year, compared to just 5% of the US-born population.
Age also plays a role, with younger people more likely to both send and receive remittances. Pew found that 22% of Millennials and 26% of Gen Zers had received money from family or friends abroad, compared to just 7% of Baby Boomers.
Income level is another key factor. The World Bank estimates that 75% of remittance senders are low or middle income earners, often supporting family members in their country of origin. For these individuals, finding an affordable and reliable way to send money is crucial.
Western Union Fees and Exchange Rates
Speaking of affordability, let‘s talk about how much it actually costs to send money with Western Union at Safeway. As with most money transfer services, there are two main costs to consider: transfer fees and exchange rates.
Transfer fees are the fixed costs charged by Western Union for sending money, and they can vary widely depending on the amount you‘re sending, how you‘re paying, and where the money is going. Generally, fees start around $5 for small domestic transfers and can climb to $100 or more for large international transactions.
At Safeway, the fee for a domestic Western Union transfer typically ranges from $12 to $20, while international transfer fees can be $25 or higher. However, these fees may be discounted or waived altogether during promotional periods, so it‘s always a good idea to ask about any current deals.
Exchange rates, on the other hand, determine how much foreign currency your recipient will actually receive when the transfer is complete. Western Union sets its own exchange rates, which are typically less favorable than the mid-market rate you‘ll see on currency conversion websites.
For example, as of April 2023, the mid-market exchange rate for US dollars to Mexican pesos was about 18.15 pesos per dollar. However, Western Union‘s exchange rate for transferring money from the US to Mexico was just 17.6 pesos per dollar – meaning your recipient would receive less than if you sent money through a provider using the mid-market rate.
How Western Union Stacks Up to Competitors
Of course, Western Union is far from the only option for sending money these days. From traditional competitors like MoneyGram and Ria to digital upstarts like Wise and Remitly, there‘s no shortage of ways to move money around the globe.
So how does Western Union compare? Here‘s a quick rundown of some key differences:
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Fees: While Western Union‘s fees are generally in line with or slightly lower than competitors like MoneyGram, online services like Wise and Xoom tend to offer the lowest fees, especially for larger transfers.
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Exchange rates: As mentioned, Western Union‘s exchange rates are typically less favorable than the mid-market rate. Wise is one notable competitor that uses the true mid-market rate for all currency conversions.
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Speed: Western Union offers a range of delivery speeds, from minutes to several days, depending on the destination and payout method. MoneyGram and Ria have similar offerings, while digital services may be slightly faster on average.
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Payout options: One of Western Union‘s biggest strengths is its huge network of agent locations for cash pickup. However, competitors like Xoom and Remitly specialize in direct bank deposits, which can be more convenient for some recipients.
Here‘s a chart summarizing the pros and cons of using Western Union compared to some top competitors:
| Provider | Pros | Cons |
|---|---|---|
| Western Union | Wide agent network, fast transfers, convenient locations | Higher fees and weaker exchange rates than some online providers |
| MoneyGram | Similar to Western Union in terms of fees and speed | Slightly smaller agent network |
| Wise | Mid-market exchange rates, low fees, fast transfers | Requires both sender and recipient to have a bank account |
| Xoom | Competitive fees, fast delivery to bank accounts | Limited cash pickup options compared to Western Union |
Ultimately, the best provider for you will depend on your specific needs and preferences. If you value the convenience of sending money while you‘re out running errands, Western Union at Safeway could be a great choice. But if getting the absolute best exchange rate is your top priority, an online specialist like Wise may be worth considering.
The Impact of COVID-19 on Remittances
It‘s impossible to talk about the current state of the money transfer industry without mentioning the COVID-19 pandemic. Over the past couple of years, global remittances have seen significant impacts from lockdowns, travel restrictions, and economic disruptions.
According to the World Bank, global remittance flows declined by 1.6% in 2020, the first drop since the global financial crisis in 2009. However, the industry has proven remarkably resilient, with remittances to low and middle-income countries reaching $540 billion in 2021 – just 1.8% below the pre-pandemic high in 2019.
For Western Union, the pandemic has accelerated the company‘s digital transformation efforts. In 2021, digital money transfer revenue grew by 34% year over year, with 37% of all transactions now initiated through the company‘s website or mobile app.
"The strong growth of our digital business is a testament to the success of our digitally-led, omni-channel strategy," said Western Union CEO Hikmet Ersek in the company‘s latest earnings report. "We continue to invest in our platform to provide a superior customer experience, expand our retail network, and scale our digital partnerships around the world."
The Future of Money Transfers
Looking ahead, the global remittance market is expected to continue growing in the coming years. The World Bank projects that remittance flows to low and middle-income countries will rise by 4.2% in 2022 to reach $565 billion.
However, the industry is also facing increasing competition and regulatory scrutiny. In recent years, a number of new digital-first providers have entered the market, offering lower fees and more transparent exchange rates than traditional players like Western Union and MoneyGram.
At the same time, governments around the world are taking a closer look at the money transfer industry in an effort to combat money laundering and terrorism financing. In the US, for example, providers like Western Union are required to comply with strict know-your-customer (KYC) regulations and report suspicious transactions to authorities.
Despite these challenges, analysts remain bullish on Western Union‘s prospects. In a recent note, investment firm Jefferies reiterated its "buy" rating on the company‘s stock, citing its strong brand recognition, extensive global network, and growing digital business.
"We believe Western Union‘s omni-channel strategy and global scale position the company well to capitalize on the long-term growth of the remittance market," wrote Jefferies analyst Trevor Williams. "While competitive and regulatory risks remain, we see significant upside potential for the stock at current levels."
Conclusion
For millions of people around the world, sending and receiving money across borders is a critical lifeline. And thanks to partnerships between retailers like Safeway and money transfer providers like Western Union, accessing these services is now more convenient than ever.
While Western Union may not always offer the absolute lowest fees or best exchange rates, its vast global network and range of payout options make it a popular choice for many customers. And with the company investing heavily in its digital platforms, it‘s well-positioned to compete in an increasingly crowded and competitive industry.
Of course, as with any financial service, it‘s important to do your own research and compare your options before sending money. But if you‘re looking for a reliable and accessible way to send cash to loved ones overseas, Western Union at Safeway is definitely worth considering.
