Can NEAR Protocol Replace Western Union?
We often hear about cryptocurrencies replacing banks and payment processors in the future. There is a long way to go between now and then. Payment networks like Visa (NYSE: V) and Mastercard (NYSE: MA) not only have the resources to adapt to changing technology (as they are among the largest companies in the world by market cap), but they are also actively engaging with cryptocurrency and exploring ways to incorporate it into their business models. In forecasting the industries and companies that cryptocurrencies can eventually disrupt and replace, let's start with an incumbent in the legacy money-transfer industry, Western Union (NYSE: WU). Here's why NEAR Protocol (CRYPTO: NEAR) could replace the 171-year-old money-transfer mainstay.
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Western Union is a $7 billion company that primarily facilitates payments and transfers of money worldwide for businesses and individuals. The company's services are often used for cross-border payments and transfers. An example of a use case for Western Union's service would be a migrant worker sending a remittance payment back to their family in their home country. This is a useful service, and it serves as the lifeblood for families and local economies in other countries. The World Bank estimates that remittances to low- and middle-income countries will reach a record $630 billion in 2022 worldwide. However, this market is ripe for disruption. Not only does it take a considerable amount of time to process transactions this way, it also accrues significant fees. A domestic money transfer with Western Union is usually completed within 24 hours, while an international transfer can take between one and five business days. Here's where crypto, specifically NEAR Protocol, could come into play and disrupt this model.
Source Fool.com
