Clover Adoption Rises: Is FI Taking Over the Small Business Sector?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy WU?
Source: NASDAQ.COM
Clover Revenue Growth: Fiserv's Clover platform saw a 30% year-over-year revenue growth in Q2 2025, driven by increased adoption of high-margin value-added services (VAS), which rose to 24% penetration among merchants.
Volume Growth Concerns: Despite revenue growth, Clover's volume only increased by 8%, a significant drop from the previous year's 17% growth, raising concerns about Fiserv's ability to attract new clients and maintain market dominance.
Legal Challenges: A class action lawsuit has been filed against Fiserv, alleging that the company artificially inflated Clover’s revenues and volume through forced merchant migration, leading to customer dissatisfaction and decreased volume growth.
Stock Performance and Valuation: Fiserv's stock has dropped 31.9% year-to-date, underperforming its industry peers, while trading at a lower forward price-to-earnings ratio compared to the industry average, indicating potential valuation concerns amidst competitive pressures.
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Analyst Views on WU
Wall Street analysts forecast WU stock price to fall
11 Analyst Rating
0 Buy
7 Hold
4 Sell
Moderate Sell
Current: 9.810
Low
7.00
Averages
9.00
High
10.00
Current: 9.810
Low
7.00
Averages
9.00
High
10.00
About WU
The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments. Its segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from its retail agent and owned locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The Company provides its services primarily through a network of agent locations in more than 200 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Remitly Global's Growth and Market Outlook Analysis
- Significant Revenue Growth: Remitly's revenue increased by 25% to $419.5 million, with a 35% rise in send volume to 19.5 million transactions, indicating a strategic shift to expand market share despite a lower take rate.
- Improved Profitability: The company reported a net income of $8.8 million in Q3, achieving profitability under GAAP, although margins remain minimal, highlighting ongoing challenges in cost management.
- Future Growth Expectations: At its Investor Day, Remitly forecasted high teens revenue growth for 2026, projecting revenues of $2.6 billion to $3 billion by 2028, implying a 20% compound annual growth rate over the next three years.
- Attractive Market Valuation: With a market cap of $2.9 billion, Remitly's stock trades at just 5 times its 2028 EBITDA forecast, suggesting potential for stock recovery if targets are met, making it an appealing option for investors.
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- Profitability Improvement: Despite challenges, Remitly achieved a net income of $8.8 million in Q3, marking its first profitability under GAAP standards, indicating a gradual improvement in its margins.
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- Transformation Strategy: The company is transitioning into a digital-first payments provider and expanding into travel money, bill payment, and prepaid card services, with expected revenue growth of 20% from 2026 to 2028, significantly enhancing its competitive position.
- Acquisition Plans: Western Union is in the process of acquiring International Money Express, a Latin America-focused competitor, which is expected to be immediately accretive to shareholders, further strengthening its market presence.
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See More
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- Promising Turnaround Plan: During its Nov. 6 Investor Day, Western Union outlined a goal of 20% revenue growth from 2026 to 2028, with projected earnings of $2.15 to $2.45 per share by 2028, which could significantly boost its stock price if achieved.
- Value from Acquisition: The company is in the process of acquiring Latin America-focused competitor International Money Express, which is expected to be immediately accretive to shareholders, further supporting its transition to a digital-first payments company.
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See More
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- Beneficiary Companies: Analyst Lakos-Bujas highlighted that retailers like Dollar Tree (DLTR) and Dollar General (DG), along with financial firms such as Citigroup (C) and Western Union (WU), are poised to benefit, reflecting a focus on the low-end consumer segment.
- Market Performance: Despite a recent downgrade, Dollar Tree's stock has surged over 78% in the past year, while Walmart (WMT) has seen a 25% increase due to a surge in AI-driven traffic, indicating sustained demand for low-cost goods.
- Industry Trends: The S&P Retail Select Industry Index (SPSIRE) has gained over 10% in the past year, highlighting strong performance among discount retailers and reflecting a growing consumer demand for affordability.
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- Participation Details: Investors can join the call via the company's Investor Relations section or the provided webcast link, and are encouraged to log in at least 15 minutes early to ensure a smooth connection.
- Conference Call Information: U.S. participants can dial +1 719 359 4580, entering meeting ID 955 3122 8825 and passcode 948891, while international participants should use the country code from the international directory.
- Company Commitment: Western Union is dedicated to providing cross-border, cross-currency money movement and digital financial services across over 200 countries and territories, aiming to empower individuals and communities to build their financial futures.
See More
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- Significant Revenue Growth: Remitly's revenue increased by 25% to $419.5 million, with a 35% rise in send volume to 19.5 million transactions, indicating a strategic shift to expand market share despite a lower take rate.
- Improved Profitability: The company reported a net income of $8.8 million in Q3, achieving profitability under GAAP, although margins remain minimal, highlighting ongoing challenges in cost management.
- Future Growth Expectations: At its Investor Day, Remitly forecasted high teens revenue growth for 2026, projecting revenues of $2.6 billion to $3 billion by 2028, implying a 20% compound annual growth rate over the next three years.
- Attractive Market Valuation: With a market cap of $2.9 billion, Remitly's stock trades at just 5 times its 2028 EBITDA forecast, suggesting potential for stock recovery if targets are met, making it an appealing option for investors.
See More
Remitly Rapidly Expands in the Remittance Market
- Market Potential: Remitly's rapid growth in the remittance market is evident as its revenue increased by 25% to $419.5 million in 2023, showcasing its strong competitive position in a global remittance market worth hundreds of billions annually.
- Profitability Improvement: Despite challenges, Remitly achieved a net income of $8.8 million in Q3, marking its first profitability under GAAP standards, indicating a gradual improvement in its margins.
- Future Growth Outlook: The company forecasts revenue to reach between $2.6 billion and $3 billion by 2028, implying a compound annual growth rate of 20%, reflecting strong long-term growth potential and market confidence.
- Product Innovation Drive: The launch of the Remitly One subscription service, which includes features like 'send now, pay later', further expands its market and enhances customer loyalty, demonstrating the company's strategic focus on product diversification.
See More
Western Union's Turnaround Expected to Yield $2.45 EPS by 2028
- Sustained Profitability: Despite increased online competition, Western Union remains profitable, consistently paying a quarterly dividend of $0.235 per share with a payout ratio around 55%, indicating strong cash flow stability and commitment to shareholders.
- Transformation Strategy: The company is transitioning into a digital-first payments provider and expanding into travel money, bill payment, and prepaid card services, with expected revenue growth of 20% from 2026 to 2028, significantly enhancing its competitive position.
- Acquisition Plans: Western Union is in the process of acquiring International Money Express, a Latin America-focused competitor, which is expected to be immediately accretive to shareholders, further strengthening its market presence.
- Valuation Potential: Currently trading at only 5.1 times forward earnings, if the company successfully transforms and achieves earnings of $2.45 per share, its stock price could potentially double within two years, showcasing strong investment appeal.
See More
Western Union Plans Turnaround, Projects Earnings of $2.45 per Share by 2028
- Sustained Profitability: Despite competition from online remittance platforms, Western Union remains profitable, consistently paying a quarterly cash dividend of $0.235, with a payout ratio around 55%, indicating a sustainable forward dividend yield of 10.3%.
- Promising Turnaround Plan: During its Nov. 6 Investor Day, Western Union outlined a goal of 20% revenue growth from 2026 to 2028, with projected earnings of $2.15 to $2.45 per share by 2028, which could significantly boost its stock price if achieved.
- Value from Acquisition: The company is in the process of acquiring Latin America-focused competitor International Money Express, which is expected to be immediately accretive to shareholders, further supporting its transition to a digital-first payments company.
- Attractive High Yield: Currently trading at just 5.1 times forward earnings, Western Union's stock could potentially double in two years if market sentiment improves, combined with a high dividend yield of 9.91%, making it an attractive option for investors.
See More
Trump's Affordability Push Likely to Benefit Low-Income Consumer Stocks
- Policy Shift: The Trump administration is expected to enhance affordability efforts ahead of the midterm elections, targeting low-income consumers, with anticipated changes likely to reshape market dynamics despite current limited impact.
- Beneficiary Companies: Analyst Lakos-Bujas highlighted that retailers like Dollar Tree (DLTR) and Dollar General (DG), along with financial firms such as Citigroup (C) and Western Union (WU), are poised to benefit, reflecting a focus on the low-end consumer segment.
- Market Performance: Despite a recent downgrade, Dollar Tree's stock has surged over 78% in the past year, while Walmart (WMT) has seen a 25% increase due to a surge in AI-driven traffic, indicating sustained demand for low-cost goods.
- Industry Trends: The S&P Retail Select Industry Index (SPSIRE) has gained over 10% in the past year, highlighting strong performance among discount retailers and reflecting a growing consumer demand for affordability.
See More
Western Union to Host Q4 2025 Results Webcast on February 20, 2026
- Earnings Call Announcement: Western Union will host a webcast and conference call on February 20, 2026, at 8:30 a.m. ET to discuss its fourth quarter and full year 2025 financial results, with a press release to be issued beforehand.
- Participation Details: Investors can join the call via the company's Investor Relations section or the provided webcast link, and are encouraged to log in at least 15 minutes early to ensure a smooth connection.
- Conference Call Information: U.S. participants can dial +1 719 359 4580, entering meeting ID 955 3122 8825 and passcode 948891, while international participants should use the country code from the international directory.
- Company Commitment: Western Union is dedicated to providing cross-border, cross-currency money movement and digital financial services across over 200 countries and territories, aiming to empower individuals and communities to build their financial futures.
See More
