Good day, and welcome to the Western Union Company Second Quarter 2021 Earnings Release Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today’s event is being recorded. I would now like to turn the conference over to Brad Windbigler, Head of Treasury and Investor Relations. Please go ahead.

Thank you. On today's call, we will discuss the company's second quarter 2021 results and our financial outlook for 2021 and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release. On our call today is our CEO, Hikmet Ersek; and our CFO, Raj Agrawal. Today's call is being recorded, and our comments include forward-looking statements. Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2020 Form 10-K for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items in the most comparable GAAP measures on our website, westernunion.com, under the Investor Relations section. We will also discuss certain adjusted metrics. The expenses that have been excluded from adjusted metrics are specific to certain initiatives but may be similar to the types of expenses that the company has previously incurred and can reasonably expect to incur in the future. All statements made by Western Union officers on this call are the property of the Western Union Company and subject to copyright protection. Other than the replay noted in our press release, Western Union has not authorized and disclaims responsibility for any recording, replay or distribution of any transcription of this call. I will now turn the call over to our CEO, Hikmet Ersek.

Thank you, Brad, and thank you all for joining us this afternoon to review our second quarter results and the progress of our business. Our second quarter performance was strong, and we are on track to achieve our adjusted 2021 financial outlook with revenue growth, reflecting sequential improvement in underlying trends and a favorable comparison to the prior year period, which was impacted by COVID-19 pandemic. Profit trended as expected in the quarter as we continue to make strategic technology investments to strengthen our market-leading platform and digital capabilities. Our business remained resilient despite global uncertainties related to ongoing COVID-19 resurgences from the delta variant and the potential risk this poses to economic recovery. Our strategy to be a leader in cross-border, cross-currency, money movement and payments, serving consumers, businesses and financial institutions remains unchanged. We remain confident in our ability to exceed $1 billion of digital revenue in 2021, supported by continued strong growth in our WU.com business and our digital partnership business. The expansion of our WU.com customer base position us well as we look to build a consumer ecosystem, deepening engagement with our customers and providing them access to a wider array of products and services. We will discuss more on our consumer ecosystem strategy in just a moment. But first, I'd like to highlight another important strategic development, which is the Business Solutions transaction we announced today. Today, we separately announced that, we reached a definitive agreement to sell our Business Solutions business to Goldfinch Partners and the Baupost Group for $910 million. Small and medium-sized businesses and organizations around the world to rely on Western Union Business Solutions, as they are global payments, foreign exchange and hedging partner, and we believe that, Goldfinch Partners and The Baupost Group are well positioned to invest in the…

Thank you, Hikmet, and good afternoon, everyone. Let me first summarize second quarter performance. And then, I will provide more color on the Business Solutions divestiture, the planned termination of our defined benefit plan, and finally, our 2021 full year outlook. Moving to the second quarter results, revenue of $1.3 billion increased 16%, on a reported basis or 13% constant currency. Currency translation, net of the impact from hedges benefited second quarter revenues by approximately $29 million compared to the prior year. In the C2C segment, revenue increased 15%, on a reported basis or 12% constant currency, with transaction growth partially offset by mix. C2C transactions grew 15% for the quarter led by 33% transaction growth in digital money transfer, and supported by growth in retail money transfer, which improved sequentially, particularly in North America and Europe and CIS. In line with our expectations, spread between C2C transactions and revenue growth moderated this quarter and was flat on a reported basis or three percentage points constant currency, as we cycled through the mix impact from the high growth of digital partnership transactions, which represents a lower revenue per transaction category. We expect the spread will remain fairly tight during the remainder of the year. Globally, we continue to see pricing environment as stable. Total C2C cross-border principal increased 29% on a reported basis or 25% constant currency driven by growth in retail and digital money transfer. Total C2C Principal per Transaction or PPT was up 11% or 8% constant currency. Both, retail and WU.com continued to experience higher average PPT, due to mix and changes in consumer behavior. Digital money transfer revenues which include WU.com and digital partnerships increased 22% on a reported basis or 19% constant currency. WU.com revenue grew 18% or 15% constant currency on transaction growth of…

Thank you. We will now begin the question-and-answer session [Operator Instructions] Today's first question comes from Darrin Peller at Wolfe Research. Please go ahead.

Thanks guys. I wanted to touch on. Hey guys, congrats, by the way, on the sale of the Business Solutions business for – I think it looks like it will enable you guys to really align to what you want to on your core C2C side.

Thanks.

When we look at the C2C side of the business, though, just the transactions on a stack growth rate basis did actually accelerate, which was nice to see from our asset base. When we're trying to figure out the dynamics, especially as you – the spread narrowing now as well, I mean was it as simple as saying like, digital obviously continues to grow well. And do you see that being sustainable from here, if we do get into more reopening? And then, just give us a reminder of where we are on the retail correction. I guess the retail reopening element where we are versus where you think you can get to by the end of the year?

Yes. Let me give overall the sense of the business. First of all, we are really happy with the performance of the business. Digital expansion is really doing very well. Also retention rates are extremely high. The customers are using. Now we are in 75 countries with our westernunion.com business. And addition on that, we also have our white label business, enterprise partnerships, which brings us to exceed $1 billion by year-end. And we really like that. We already have $500 million achieved. And we believe that's going to continue. If you look at that from what base, right, especially if you compare that with competition. We are really growing very strong on a huge base year. So I'm pleased on that. And retail is coming back, especially in places where retail is open, where volatility due to coronavirus is less, it's really doing well. Our pump business is doing very well. It's coming back. So that's also stable. The stability of the retail – the resilience of the retail business, adding on that on the digital business, it's really good news here we have here. And then also, dotcom business gives us the ability with the return customers, have that customer relationship. We have about 9 million customers now with only dotcom business that gives us really a great base for our ecosystem strategy. And the customer loyalty is increasing here and really allows us to offer additional products to our westernunion.com customers in the future and the test, as you saw, starts this year in Europe with our Western Union Bank. Do you want to add something on that?

Yes. Darrin, on your question around the spread, it is generally as simple as we are growing over some of the really fast growth from our digital partnership digital white label business, which was the key driver of the wider spread over the course of the last year. So we had expected that it would narrow. I do think that it's going to continue to be narrow the rest of the year, because of that impact. And I think the – in terms of where is retail, the way we think about it is if you look at the total C2C business, this second quarter, compared to the second quarter of 2019, we're slightly ahead of where we were. We're about a point ahead in total of where the overall consumer business is, obviously, that business has shifted dramatically over that period of time. Now in the second quarter, we have digital, it is about 24% of consumer revenues. And back in the second quarter of 2019, it was only about mid-teens. So we've had a significant shift in the business, if you will. And I think that's a really good story for us going forward where the consumer business is more digitally, heavily oriented and provides a good growth profile going forward.

That's really helpful. It's the big data point, I think, that from I think, that from the retail I think, that from the retail side is actually for the 2019 level now from a transactional standpoint, which I guess underscores the digital side is holding up and helping your growth profile. But one quick one is just when we look at the investment and the progress you've made on the WU.com number of the 9 million users, can you just touch on engagement levels for a minute in terms of where they are now versus where they've been in years past, how many transactions you see for those kinds of users versus the retail side, and what that can be [Technical Difficulty] monetization? Thanks again.

Yes. I think on the westernunion.com, retention levels are really increasing in the countries we've been longer. The customers are using us more and more once they open an account. As you know, the big difference between retail money transfer and westernunion.com money transfer is that you have to know your customer. You have to register at westernunion.com. And biggest advantage we recently did also that helps a lot is the electronic KYC. The customers don't have to go to a location to preregister in many countries. That's a huge step to get more customers and have them really well. And one thing also changed recently is that the PPT is higher, the principal transaction with the customers. We do see that we acquire new customer segments here with higher PPT. And additional to that, what I like, as you know, most of the transactions are paid out on our locations, a retail locations globally we have in 200 countries 550,000 locations, they paid out in cash. But the new customers are also wanted to send money to an account. In fact, this business is growing very strong. We are really gaining market share, and it's on the $200 million business almost now.

Account-to-account, pure account-to-account is on a annual run rate, that's $200 million revenue.

$200 million annual run rate business. So you could see we are really adding new customers. And the customers – so to your question, yes, the retention is high, the revenues are coming from the customers who have been already here. But don't forget also, we are in 75 countries. We are sending money from 75 countries. We recently opened new countries and they're also adding to our success on digital growth.

Right. That's great. Thanks guys.

Thank you, Darrin

And our next question today comes from Tien-Tsin Huang with JPMorgan. Please go ahead.

Hi, Tien-Tsin.

Excellent guys. Good afternoon here. Hi Hikmet. Good afternoon, good to connect to as always. Just, I totally understand the focus in selling Business Solutions. But Hikmet, I just wanted to clarify the strategy. Is the idea to focus more on consumer-based payments as alluded to with the consumer ecosystem strategy or is still servicing businesses with money movement as stated in your strategy statement here. Is that still on the table? Just wanted to clarify that point.

So great question, Tien-Tsin on that. First of all, our strategy has not changed, right? We being a leader on the cross-border, cross-currency money transfer, serving multiple use cases, it's really a big advantage of Western Union. And to do so, we heavily invest in our one platform strategy, right, one unique platform, which serves multiple use cases. As you look at our platform, the investment we did in the technology, the automation, the cloud-based systems, transaction processing systems, which have been really a huge advantage for us, and it's continued to go investments there, serves multiple use cases. C2B, B2C, B2C, C2C, all this case is going to continue to expand. And that our white label expansion is going to continue to happen. As I mentioned earlier, we do have customers like – technology customers like Google Pay, and that's going to continue to happen or retailers like Amazon, that's going to continue to happen. And we have strategy to expand that. Then we have mobile telephone companies, telecom companies like, STC Pay. So their customers are also businesses. And most importantly, we do have financial institutions. As you know, we are serving with our white labeling also about more than 40 financial institutions globally white labeling our system. And the big two – the biggest that we have a very successful business [indiscernible] in Russia, that continues to happen. So our strategy is, and if I summarize that, serving our customers, existing customers with westernunion.com in retail with Western Union brand, but also adding new customer segments like businesses, financial institutions, tech company with our unique platform. That has not changed. And that's a very successful strategy, I believe.

Yes. Okay, understood. I just want to make sure…

And by the way, Tien-Tsin, remember in 2019 our Investor Day, I showed also C2B and B2C segment is $2 trillion market opportunity, right, and that focus continues to happen.

Okay. Yes, that's what has got me thinking about it. Thank you for that clarification, I do go back to that Investor Day quite often, so thanks for that. And my quick follow-up, if you don't mind, just with retail getting better, it was good to see that. I have to ask on the Walmart side. How – if you can comment, how is that performing relative to your expectations? Any surprises there?

No surprises, Tien-Tsin. We are rolling out now – we did roll out sorry, we did roll out with all our products in 4,700 locations. We have not only money transfer, domestic money transfer, international money transfer. We also rolled out the bill payments products at the Walmart locations. It's ramping up. And we are and associates are aware, customers are aware. I think we see now the good ramp-up at the Walmart locations with Western Union transactions. We like it.

Great. Thank you for the update. Thanks a lot for that.

Thanks, Tien-Tsin.

Thanks Tien-Tsin.

And our next question comes from Jason Kupferberg with Bank of America. Please go ahead.

Hey. Thanks guys. Good afternoon. Since you brought up the Investor Day, Hikmet, I'll ask you one, just going back to that, which I know was six months or so before the start of the pandemic. I think back then, you had talked about a multiyear revenue CAGR target of 2% to 3% for the C2C business. And obviously, there is been a mix shift to digital that's been accelerated further due to the pandemic. So, just wondering how you would figure now as we move forward and would kind of the year-over-year comparisons normalize?

First of all, great question. Obviously, pandemic, as you said, Jason, had some impact to forecast obviously, but on the timing wise. I think we are well underway to executing our strategy, as we presented at the Investors Day. And we are really expanding not only with The Western Union branded products, also with white labeling and offering our platform to third-parties has been a good strategy. And our digital growth, as we outlined at the Investor Day is really in the good path. COVID-19, the pandemic definitely helped us also to gain new customer segments with higher principal numbers in digital, it has – but we were ready. We were already ready to serve this kind of customers. They want us to send money to their loved ones. One thing that has not changed is that customers want to support their loved ones in good and bad times, in good times and challenging times. And that's resilience of our business and using the omnichannel capabilities, which Western Union offers, from the send side, also from the receive side is unique. And that has been – that has not changed in the consumer business. Also on our businesses like offering to financial institutions to FI, it's a big focus within the company. As you know, we have been investing in our platform – technology platform, significant investment. We have now – one example is that, the technology investment gives us the capabilities, really serving our platform to banks and to financial institutions to getting easy connections to them really kind of going after the headaches of correspondent banking, as you know, the correspondent bank is sending money from one account to another account especially when it comes to exotic currencies on the emerging countries, it's painful, but our unique platform can really serve that. So that's all been outlined at our Investors Day, and I'm pleased with that. Maybe the biggest –another advantage we didn't talk too much at the Investors Day, but recently, we start to talk is about our ecosystem. It's unique, our platform, westernunion.com, capability really gives us a unique platform that we can offer additional products like credit cards, like debit cards, like loans, like insurance, even like travel, all the building that ecosystem. And there is no other company who can talk to these unique customers like we can talk to global migrant community. And examples like in the UK, we are not talking to the Albanian customer in English or in their British way, we are really talking with their way to understand that this loyalty, this brand awareness is huge. And that gives us really a basis of building additional products.

Yes, that's a comprehensive answer. I appreciate it. Raj, I know you mentioned there is over [indiscernible] authorization. I think you've spent just about $75 million in the second quarter. Do you expect to use up the rest of the authorization by the time it expires at the end of the year?

No, we don't, Jason. There would be a lot of share repurchase for this year. But we do plan to continue to be active. I would expect that we're going to re-up an authorization after this year is over just to continue to be active. And then obviously, we have the sale of Business Solutions, which will close – the first close will be early next year. And so we'll have a view on how we're going to deploy those proceeds. And so all of that will play a factor in terms of the share repurchase amounts. But we're very pleased with the cash flow generations the business has had and we're paying healthy dividends and buying back stock as we have historically.

Yes. I was just wondering about the second half would be better than the second quarter just given the pullback and the stuff?

Yes. I mean, look, we don't have an exact forecast to give you on how much stock buyback, but we're always going to be nimble on that depending on the market conditions and other factors, but that's the current plan.

Okay. Thank you, guys. Appreciate it.

Thanks.

Thank you.

Thank you. [Operator Instructions] Today's next question comes from James Faucette with Morgan Stanley. Please go ahead.

Great. Thank you very much. I'm wondering if – I know that you're moving gradually to draw up the WU banking services in Europe. But I'm wondering if you can kind of give us an outline of what we should expect around that? What you think the opportunities are? And kind of the key milestones that we should be keeping track of or watching for and what time frame, just trying to get some more color on that initiative.

Yes. First of all, we believe it's extremely exciting, this opportunity, because what we have maybe is a big competitive advantage is, that we are really starting with brand awareness, customer relationship already and really having a unique customer segmentation, which others don't have it. And by the way, given this – having a European Union bank license and having offering financial services, we really start from a very good base actually to offer our services. We will start to test that in two countries in Europe now. And I would say that internally, we look at that, I would say that no bank has been launching so far the product like we have done it, and we will do it. And I'm very proud of what the team has done and very excited about that. Obviously, when time comes, we will kind of give you more details about that, what metrics will be. But I'm excited. And customers also told us that they want to have additional products on Western Union. So we want to get a better service and they trust our brand.

Yes. James, I would just add that depending on the outcome of this test, we'll be ready to go to more markets and expand further as appropriate. So I think the beauty of our business is the send and receive dynamics that we'll be testing out between the – a sending market and a receiving market as part of this test. So it's – we're excited about what it can be.

Thank you. Our next question today comes from Ramsey El-Assal with Barclays. Please go ahead.

Hi. This is Ben on for Ramsey. Thanks so much for taking my question. I wanted to ask about the continuing pace of your digital revenue growth. It looked like the sequential step-up in revenues was quite a bit bigger in this quarter, 2Q versus 1Q than it has been in previous quarters. Does that look like that's on track to continue? Or should it kind of grow a little bit more moderately because it looks like you're already kind of nicely on track to hit like at least $1 billion a year. So I just wanted to get a better sense of what we should expect in the next couple of quarters.

Yes. I mean, that's our outlook. Our outlook is to grow at least $1 billion. And you're right on the mark. I mean, we got really good sequential improvement in the second quarter, and that was with both WU.com as well as our digital white label business that make up this digital business for the first half of the year. We're over $500 million. And we're well on pace to exceed that. And so we feel very good about it. I won't give you specific numbers beyond what's going to happen in the second half, but we should reach $500 million in the second half, if not more.

Okay. That's helpful. And if I could just ask kind of one follow-up just on the digital side as well, it looks just from our math, like the pricing on digital has kind of stabilized a little bit in the last couple of quarters. Is there any possibility that could go up? I mean, are you perhaps lapping some introductory pricing that's going to – as you go past it, pricing come up a little bit? Or is a stabilization kind of the way to think about it?

Yes. I would say that pricing overall is quite stable in the market. And but we always are moving pricing up and down in our 20,000 corridors in all of our channels. So it's never static in nature. But what you're seeing from a year-over-year standpoint is that we are beginning to grow over some of the price changes we made in the WU.com business for customer acquisition last year, if you recall. And so we see this as quite stable, but we're always going to be nimble on what is it that's going to drive the best customer acquisition and the best customer adoption. And that's really what's going to drive the long-term health of this business, not just what is the price in this quarter or that quarter. It really is about getting lifetime value of customers. And one thing I would just add or a couple of things is the dynamic pricing capabilities that we have, have really started to gain some traction, and we're not even done with that opportunity yet. So whether it's retail or digital, the dynamic pricing capabilities we continue to add to our technical capabilities. And that team is doing an amazing job in capturing additional opportunities there. And then the account-to-account part of the business also is quite interesting that's at a lower yield, typically. However, we're getting about $200 million of annual revenue run rate in the pure account-to-account business within digital. So that's sort of a hidden gem, if you will, on the purely digital part of our business. It's not something that we've spoken about before, but it's quite interesting and quite attractive. And that is the fastest-growing part of our digital business.

Very helpful and interesting. And thank you so much for taking my questions.

And our next question today comes from Andrew Jeffrey with Truist Securities.

Hi, good afternoon. Appreciate you taking the questions.

Hi, Andrew.

Hi, Hikmet. I'm curious about the Western Union branded ecosystem strategy and how you think about sort of timing. Obviously, there are some digital negative competitors in the market, one, in particular, one that have sort of been doing this for several years. And I just wonder, the brand is an important advantage. I wonder about whether or not you feel like you're maybe behind the curve a little bit competitively? And how you're going to balance the commitment to shareholders and free cash flow with the investments required to grow that business?

Well, first of all, obviously, we wouldn't start such an exciting project if we wouldn't be very motivated about that. And we have – as I mentioned earlier, we have all the basis and all the regulatory environment to start this ecosystem project. It's a – it's really a long-term opportunity. It's a very exciting opportunity to have the customers loyal for a long time for different, different kind of – with different products, what they need. The investment is really a low investment. We have the basis. We don't have to start like a neobank or all the banks from zero we need to – don’t need the investment. As you know, we've been as a company, we're a shareholder friendly and we're always profitable growth focus. Saying that, though, we are – think that that's incremental growth opportunity with lower investment requirements than others would have it here and that gives us a base and our bank, which is based in Europe, allows us also to run that in a way that the others maybe have some challenges. And that's – so I don't see a big investment. We do invest, of course, but not that means that we will have to change our guidance suddenly or something like that. We are very pleased with the opportunity.

Yes. I would just say the advantage we have is that we already operate everywhere in the world. So it's about adding additional capabilities. That's why we think we're uniquely positioned to be able to take advantage of our 9 million consumers that are on WU.com and give them additional products and services. So yes, there is investment, but it's really within our outlook certainly this year and if it drives additional revenue growth, that's the real beauty of what we're trying to create here.

I think the question comes up, because it's something new as we stock a little bit in the and concerning that in the Investor Day. But I can tell you that, we're going to give you more color over the coming quarters and years because this is really exciting. And so we can't really build to tell the story even more in detail.

Thanks for that.

Thank you.

And our next question comes from Vasu Govil with KBW Please go ahead.

Hi. Thanks for taking my question. I guess, I wanted to go back to the last Investor Day as well, and I know you guys have talked about a 23% margin goal by 2022. And I know a lot has changed since then, but now with this divestiture of the Business Solutions segment, at least a part of that is expected in the first part of the year. Is that potentially a goal on the table now? If you could comment on that, and then, if you could also just talk about how we should be modeling The Western Union – the Business Solutions divestiture because I know it's getting done in two parts?

Yes. Hi Vasu, this is Raj. Let me try to answer both your questions. On the original targets that we set in 2019, I think you've sort of answered your own question, which is a lot has changed, since then. We certainly had objectives of expanding margins by 300 basis points. And the key driver behind that were our cost savings initiatives of $150 million, which we are very much on track to achieve. So we'll get to $150 million of run rate savings next year, which itself was the primary driver of the margin expansion. In addition to that, we needed 2% to 3% revenue growth each of the following three years, which, obviously, we didn't get because of COVID. So we really have to reassess where we are. I would say one thing that the model hasn't changed. So our cost structure is still 40% to 45% fixed. And our variable costs are 55% to 60%. So as we get revenue growth, it gives us a lot of flexibility to not only, think about margins but also to invest back in the business. So if we can get back on track and you've seen and you've heard some of the commentary around the mix shift of the business, we're now almost about 24% of our consumer revenues are digital. It really gives us potentially a different growth profile going forward. So we're very excited about that. And then, on your second question related to Western Union Business Solutions, no real impact this year because the first transaction, first part of the closing won't happen until early part of next year. We've called out the M&A costs that are related to the Woods divestiture. But other than that, nothing else really changes the P&L will still reflect the business. Next year, as we get into the first closing, we will start to show you the impacts for Business Solutions on a pro forma basis. And we did give you some data points that you can use just as some data points. The last 12 months, the business generated about $374 million of revenue, about $64 million of EBITDA and about $33 million of operating income. So I just need to give you a sense of what the business has looked like the last 12 months.

Thank you very much.

Sure.

And our next question today comes from Jeff Cantwell of Guggenheim Securities. Please go ahead.

Hi. How are you? Congrats on results, guys. Mine's a follow-up to earlier questions that you're being asked. I wanted to ask you, can you talk some more about your digital business. We see you reaching a new hyper revenue, and that's Slide 8, you show WU.com principal growth is up 37%, new users up 14%. We can see the data on your app download is pretty strong over the past few quarters. So the digital results stood out to us and you're lapping the height of the pandemic last year. So it's good to see some continued expansion there. So maybe, is there anything more you can share that stood out about right now as far as your ability to attract new customers, maybe about the growth you're seeing with your existing customers and whether there's any pockets where WU’s expanding geographically. Just hoping to get any further kind of granularity and so forth? And then maybe can you talk more about the opportunities that you're seeing in digital right now as you're looking ahead? Thanks very much.

Yes. I mean that's – if you have a couple of hours later, Jeff, we have to talk to you, but we're very – let me just try to summarize, we're very excited about the digital opportunity. The growth rates are not really reflective of what the business is because we're growing off of a much larger base, whether you're talking about customers or revenue from last year and the 14% growth in MAUs is still very good on a much larger base, if you will. So very pleased with that. We do think that the digital business in total has a lot of great growth opportunities ahead of it. Obviously, we're doing a lot of things in WU.com, improving features and functionality, which drives better retention. We're also continuing to acquire more customers, and then we have a heavy focus on distribution. So more mobile funding, more mobile payout, more account funding, account payout in more geographies. We expanded Chile and Peru in the quarter. So that's on the WU.com.

And maybe you can also mention the app downloads...

Yes. Yes. The app downloads, as we said in our press release and commentary is still number one with number one app download by far, according to Sensor Tower data. And then on the digital partnership side, we have a pipeline of partners that are coming. You'll see some more that are activated this year. And then we have – that's a long-term growth opportunity. Not all the partners on the digital side need to be like Saudi Telecom or Sberbank, which has really far exceeded our expectations. But if we can get a partner to in every market in 200 countries, that becomes a really big opportunity for us, long-term. So we're very pleased, and we can certainly talk more offline, if you'd like, about just generally how we feel about the business.

Okay, great. Thank you.

Sure.

Ladies and gentlemen, our final question today comes from Jamie Friedman with Susquehanna. Please go ahead.

Hi, let me echo congratulations on the results and the transaction. If you were to map Slide 8 which Jeff was just referencing over to Slide 11, like the geographic footprint. What would that look like? What – are there any callouts or characteristics on that? Like what does the geographic footprint of WU.com specifically look like?

On WU.com, obviously, we are very much focused. We are having 75 countries, and we are very much focused on the send countries because by nature, WU.com is a central agents, right? We happen to own it and with us what we are doing. That's the 9 million customers sending money to the loved ones in 200 countries. Most of the transactions are dual happening in North America and in Europe, Europe Union and recently very strong growth also in the Gulf states with our WU.com transaction to sending from 75 countries. But recently we also saw that some receiving countries. Traditional receiving countries started to send money also certain customer segments with a higher band. There are different customer segments, really supporting like their children, cross-border or doing medical payments, doing really via westernunion.com. And this kind of transactions are really driving the growth of dot-com business. And region, maybe you want to add something...

Yes. Let me see if I can also answer part of your question, Jamie. The heaviest concentration of the digital business from a geographic standpoint will be in North America, and Europe NCIS. The next two probably are Middle East and Asia Pacific, because we've seen some good concentration there. I would say the part of our business that is least leverage on digital is Latin America. And that's why you actually saw some significant growth rates in Latin America, because it was more heavily impacted negatively last year, because they didn't really have a digital business to mitigate some of the decline. And this year, in the second quarter, you see the big pop upward because there's no digital business there really to speak of. And so the Chilean Peru launches for WU.com this year and this quarter are going to be important components as we keep building that digital business in Latin America. So there continues to be opportunity around the world to keep going from a geographic expansion standpoint.

Got it. Thank you very much.

Thank you.

And ladies and gentlemen, this concludes today's question-and-answer session and today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines. And have a wonderful day.