How Does Western Union Make Money

Western Union is a leading provider of cross-border money transfer services, with a presence in over 200 countries and territories around the world. How does Western Union make money?

Founded in 1851, the company has been helping people send and receive money for more than 170 years.

In this article, we’ll take a closer look at how Western Union makes money.

How Western Union Makes Money

As you might imagine, Western Union generates money from it’s activities.

Here are the various ways in which Western Union makes money today.

  1. Transfer fees

The primary way that Western Union makes money is through transfer fees. When someone sends money using Western Union, they are charged a fee for the service. The fee varies depending on the amount of money being sent, the destination country, and the speed of the transfer. For example, a same-day transfer will typically cost more than a standard transfer that takes several days to complete.

  1. Currency exchange

Another way that Western Union makes money is through currency exchange. When someone sends money to another country, the money needs to be converted from one currency to another. Western Union makes money by charging a markup on the exchange rate used for the conversion. This markup is usually a percentage of the total amount being transferred.

  1. Interest on float

Western Union also makes money by earning interest on the “float.” The float is the money that is held in Western Union’s accounts while transfers are being processed. Western Union invests this money and earns interest on it until the transfer is complete. While the interest earned on the float may not be as significant as the other sources of revenue, it still contributes to the company’s overall profits.

  1. Other services

Western Union offers other services that generate revenue, such as bill payments, prepaid cards, and money orders. While these services may not be as lucrative as money transfers, they still contribute to the company’s bottom line.


In conclusion, Western Union makes money through transfer fees, currency exchange, interest on float, and other services. As one of the largest money transfer companies in the world, Western Union’s revenue streams have helped it to maintain its position as a leading provider of cross-border money transfer services.

Overall, Western Union has diversified its revenue streams by offering a range of services beyond money transfers. This strategy has helped the company to maintain its position as a leading provider of cross-border money transfer services. By charging transfer fees, making money on currency exchange, earning interest on float, offering other services, and partnering with other businesses, Western Union has created a profitable business model