Western Union Signs Agreement to Invest Stc Pay

​The Western Union Company, a global leader in cross-border, cross-currency money movement and payments, announced that it has signed a definitive agreement to acquire a minority stake in stc pay, a fast growing Saudi Digital Payments Company.

In an official press release, Western Union announced that it will invest up to $200 million for up to 15% ownership of stc pay and they have extended the terms of their commercial relationship in conjunction with the investment.

The Company currently partners with stc pay, providing money transfer services that allow stc pay's users to send money from its app to 200+ countries and territories in 130+ currencies through Western Union's extensive global network of accounts, wallets, cards and retail.

“I am extremely pleased with the progress of Western Union's digital growth strategy this year. A key element of this strategy is partnering with innovative financial companies to expand services for their customers and drive incremental growth for Western Union. Our strategy has proven to be successful, and I am encouraged by the meaningful contribution our partnership with stc pay made to Western Union's digital growth in 2020,” said Western Union Chief Executive Officer Hikmet Ersek.

Commenting on the transaction, stc pay CEO Ahmed Alenazi said: "We are delighted that such a prestigious and visionary company as Western Union has identified stc pay as a company with such strong prospects. We are grateful for their appreciation of the strength of the brand and the business we are growing. Their focus on customers' changing needs and the drive for innovation makes them the ideal partner for our next period of growth."

The transaction is expected to close in the first quarter of 2021, subject to receiving all regulatory approvals.