Western Union unveiled a new platform strategy that will capitalize on its cross-border payment capabilities and issued a new three-year financial outlook.

The company is targeting an operating margin of 23% by the year 2022 and a low double-digit compound annual growth rate over the next three years. The targets are based on assumed revenue CAGR of 2% to 3% between 2020-2022. The targets also reflect an expected savings of $150 million in total annual savings by 2022, including $100 million from a restructuring announced by the company in August. 

"Our resilient business gave us the opportunity to develop the long-term vision and three-year financial targets we’re unveiling today," Western Union CEO Hikmet Ersek said in a company announcement. "Going forward we expect to drive additional profitable growth for shareholders and more value to customers through new products, expanded service offerings and partnerships that leverage our industry leading capabilities, powered by a unique cross-border platform of unmatched global scale.”

The company plans to achieve these new goals through the following initiatives: 

• Partnerships where it provides customized payments to organizations such as e-commerce businesses expanding into emerging global markets. 
• Providing end-to-end cross border solutions to third-party organizations in order to solve their cross-border needs.
• Providing cross-border solutions, such as foreign exchange and cash management for institutions. 
• Providing additional financial products for consumers.

Cover image: Western Union