DENVER–(BUSINESS WIRE)– The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement and payments, today announced it has completed its acquisition of a minority stake in stc Bank (formerly operating as Saudi Digital Payments Company, or stc pay, which was a leading digital wallet service provider in Saudi Arabia) and is in the process of launching as one of the first digital banks in the Kingdom of Saudi Arabia. According to the terms of the transaction, Western Union has acquired 15% ownership of stc Bank for $200 million.
“We are very excited about our investment in stc Bank as it supports the expansion of our global consumer ecosystem and accelerates Western Union’s growth strategy by deepening our relationship with an innovative partner in an important region for digital payments,” said Western Union Chief Executive Officer Hikmet Ersek. “We look forward to contributing to the company’s continued growth and expansion in the coming years as they build out a broader ecosystem of digital payment services to a wide range of customers.”
stc Bank is well positioned for expansion into new digital banking services and continued growth in the future, with the Saudi Council of Ministers having recently issued its decision to approve its licensing as a digital bank. The decision is subject to completing the regulatory requirements of the Saudi Central Bank (SAMA).
In tandem with the investment agreement, announced in November 2020, both companies have extended the terms of their existing commercial relationship. This partnership sees Western Union provide money transfer services that allow stc Bank’s users to send money from its app to 200+ countries and territories in 130+ currencies through Western Union’s extensive global financial network of bank accounts, wallets and cards.
Western Union’s investment in stc Bank marks another milestone in the execution of the company’s digital growth strategy, which includes serving customers through its westernunion.com business as well as leveraging its omni-channel, cross border platform and global financial network to help partners expand the services they offer their customers.
About Western Union
The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. Western Union’s platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and over 130 currencies. We connect businesses, financial institutions, governments, and consumers through one of the world’s widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and more than 550,000 retail locations. Western Union connects the world to bring boundless possibilities within reach. For more information, visit www.westernunion.com.
About stc Bank
In harmony with the Kingdom’s Vision 2030 to progress and diversify digital services; stc Bank has been built to become a pioneering service of the futuristic wave that enables new endeavors and unlocks new possibilities. We share a future vision with customers and businesses to provide new and innovative technologies and digital experiences.
Source: The Western Union Company