Investing

Jonathan Nicholson | NurPhoto | Getty Images

Shares of Western Union fell Tuesday as excitement around the potential of sending money internationally without fees with Facebook’s new cryptocurrency took a bite out of the money exchanging company.

Western Union was one of the the worst performing stocks on the S&P 500 index, falling 1.7%.

Facebook unveiled a cryptocurrency called Libra on Tuesday. The tech giant is leading a group of companies in building Libra as a digital currency, which is expected to launch in the first half of 2020.

Among Facebook’s applications for Libra is cross-border payments, otherwise known as remittances. People who want to send money internationally would transfer funds between local currencies and Libra, rather than pay a bank like Western Union a few to transfer the money.

Facebook is partnering with dozens of companies to facilitate Libra, including payment companies like Visa, MasterCard and PayPal.

“Consumer-to-consumer” money exchanges makes up about 80% of Western Union’s revenue, according to its most recent quarterly report in May. The company forecast full-year 2019 non-adjusted earnings between $2.66 a share and $2.76 a share.

Products You May Like

Articles You May Like

Wells Fargo falls despite profit beat as executives warn of higher expenses
Wall Street is relying too much on the Fed to extend the record rally, Wilmington Trust warns
A big Tesla skeptic on Wall Street raises his estimate for second-quarter earnings
Former MLB star A-Rod wants to stop athletes from going broke
Nine in 10 workers miss this valuable retirement savings opportunity

Leave a Reply

Your email address will not be published. Required fields are marked *