Western Union facts for kids
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| Public company | |
| Traded as |
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| Industry | Financial services |
| Founded | April 8, 1851 in Rochester, New York, U.S. |
| Headquarters | Denver, Colorado, U.S. |
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Area served
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Worldwide |
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Key people
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Jeffrey A. Joerres (Chairman) Devin McGranahan (President and CEO) |
| Services | Wire transfers Money orders Money transfers Bill pay Transfer tracking Price estimation |
| Revenue |  US$4.36 billion (2023 |
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Operating income
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US$817.5 million (2023) |
| US$626 million (2023) |
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| Total assets | US$8.199 billion (2023) |
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Number of employees
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9,000 (2018) |
The Western Union Company is a big American company that helps people send money around the world. Its main office is in Denver, Colorado.
The company started in 1851 in Rochester, New York. It was first called the New York and Mississippi Valley Printing Telegraph Company. In 1856, it changed its name to the Western Union Telegraph Company after joining with other telegraph companies.
For many years, from the 1860s to the 1980s, Western Union was a leader in sending messages by telegraph. They also created new ways to communicate, like telex and wire transfers (sending money electronically).
In the 1980s, the company faced money problems. It started to focus more on sending money and less on messages. By 2006, Western Union stopped its message services completely. At that time, it was known as the world's largest company for sending money. Many people, especially immigrants, used its services to send money home to their families.
Western Union also played a big part in the history of technology. In 1861, they finished the first transcontinental telegraph line. This line connected the East and West coasts of the United States. The very first messages on this line were sent to then-President Abraham Lincoln.
Contents
Western Union's Journey: From Telegraphs to Money Transfers
How Western Union Began (1851–1866)
The New York and Mississippi Valley Printing Telegraph Company started in Rochester, New York, in 1851. It was founded by people like Samuel L. Selden and Hiram Sibley. In 1856, this company joined with a rival, the Erie and Michigan Telegraph Company. At the suggestion of Ezra Cornell, they changed their name to Western Union Telegraph Company.
In 1857, Western Union joined other telegraph companies in a plan called the 'Treaty of Six Nations'. This plan aimed to create a system where each company had its own area, but they shared a main network. Western Union kept buying other telegraph companies, both big and small. By 1864, it became a very powerful company across the country. Its main rivals were the American Telegraph Company and the United States Telegraph Company.
Western Union completed the first transcontinental telegraph line in 1861. This was a huge step for communication in the U.S. The first messages sent on this line went to President Abraham Lincoln. The company also tried to connect America to Europe through Alaska and Siberia to Moscow. This project, called the Russian–American Telegraph Company, was stopped in 1867. This was because a transatlantic telegraph cable was successfully laid under the ocean in 1866, making the land route unnecessary.
Becoming a Leader and Facing New Rivals (1866–1881)
In 1866, Western Union bought its two main competitors, the American Telegraph Company and the United States Telegraph Company. For a while, this gave them almost complete control over the telegraph business in America.
The company also started offering new services beyond just sending telegrams. In 1866, they launched the first stock ticker, which showed stock prices. In 1870, they offered a standard time service. In 1871, they started their famous wire transfer service, allowing people to send money electronically.
In the 1870s, Western Union faced new challenges. A new rival, the Atlantic and Pacific Telegraph Company, appeared. Also, the new telephony (telephone) industry, led by the Bell Telephone Company, started to grow. Western Union tried to create its own telephone system. But after a legal fight over patents with Bell, Western Union left the telephone business in 1879.
In 1881, a rich businessman named Jay Gould arranged for the Atlantic and Pacific Telegraph Company to join with Western Union. This gave him a lot of control over the new, bigger company.
Telegraph Dominance and Decline (1881–1963)
When the Dow Jones Railroad Average stock market index was created in 1884, Western Union was one of the first eleven companies included. By 1900, Western Union had over a million miles of telegraph lines. They also had two international undersea cables.
In 1909, AT&T gained control of Western Union by buying a large part of the company. However, in 1913, AT&T was forced to sell its shares in Western Union. This happened because of a law called the Sherman Antitrust Act of 1890, which stops companies from becoming too powerful. Western Union then became independent again.
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In 1945, Western Union bought its only major competitor in the American telegraph business, Postal Telegraph, Inc. This gave Western Union a near-monopoly. However, after 1945, the telegraph industry started to shrink. More and more people began using telephones, especially for long-distance calls. The number of telegrams sent almost halved between 1945 and 1960.
In 1958, Western Union started offering telex services in New York City. Telex allowed people to send typed messages over a network. Direct international telex services to London and Paris began in 1960.
For Valentine's Day in 1959, Western Union introduced the Candygram. This was a box of chocolates that came with a telegram.
Changes and New Directions (1963–1984)
In 1963, Western Union created a separate company called Western Union International (WUI). This new company handled its international cable systems. Western Union then sold WUI to American Securities. WUI later became a public company and was eventually sold to MCI Communications in 1981. MCI changed WUI's name to MCI International, and the Western Union brand was no longer used for these international services.
In 1969, Western Union bought the TWX system from AT&T. This was the main rival to Western Union's own telex network.
Western Union became the first American company to have its own fleet of geosynchronous communications satellites, starting in 1974. These satellites, called Westar, helped Western Union send telegrams and mailgrams across the country. They also carried traffic for its telex services. Other companies also rented space on the Westar satellites to send video, voice, and data.
In 1981, Western Union bought half of Airfone, a company that provided phone service on airplanes. They sold their share to GTE in 1986. From 1982, Western Union started offering wire money transfer services all over the world. This was due to new laws that made it easier for financial services companies to operate.
Financial Challenges and Rebuilding (1984–2006)
In 1984, Western Union faced serious financial problems with falling profits and growing debts. The company worked with its lenders to reorganize its debt. In 1987, an investor named Bennett S. LeBow took control of Western Union. He brought in Robert J. Amman as president and CEO. Amman led a major effort to rebuild the company over the next six years.
Amman decided to change Western Union from a communications company to a company focused on money transfer financial services. He treated the money transfer business as a separate, growing part of the company. The other parts, like the old phone networks and satellite business, were sold off.
By 1990, most of Western Union's business services, including its electronic mail and Telex businesses, were sold to AT&T. This marked the end of Western Union's role as a telecommunications carrier.
In 1991, the company's official name was changed to New Valley Corporation. This was done to protect the Western Union name while the company went through a legal process to deal with its debts. During this time, the money transfer business continued to grow a lot.
As part of these changes, Western Union's original telegraph business was sold to another company called iTelegram.
After more changes, New Valley Corporation was sold in 1994 to First Financial Management Corporation. In 1995, First Financial joined with First Data Corporation. After buying the company, First Data Corporation decided to bring back telegraph services under the Western Union brand.
Becoming a Public Company and Growing Globally (2006–Present)
On January 26, 2006, First Data announced that it would separate Western Union into its own independent company. This new company would focus only on money transfers. The separation happened on September 29, 2006. The very next day, Western Union announced it would stop offering telegram services for good.
In 2009, Western Union bought a Canadian company called Custom House. This deal helped Western Union create a new part of its business called Western Union Business Solutions. This part of the company helps businesses with their payments.
Western Union continued to grow by buying other companies. In 2011, they bought Angelo Costa, a group that helps immigrants with money transfers in Europe. They also bought Travelex's Global Business Payments division and Finint S.r.l., another money transfer agent in Europe.
In 2015, there were rumors that Western Union might join with its competitor, MoneyGram. However, Western Union said this was not true. Later, in 2017, a company called Ant Financial tried to buy MoneyGram, but the U.S. government stopped the deal due to national security concerns.
In 2018, Western Union moved its main office to the Denver Tech Center in Colorado. In 2020, they sold their old office complex.
In 2020, Western Union bought a part of the digital payments unit of Saudi Telecom Company. In 2022, Western Union stopped its operations in Russia and Belarus because of the Russian invasion of Ukraine.
How Western Union Helps Today
Western Union offers several ways to send and receive money.
Sending Money (Wire Transfer)
You can send money online or by visiting a Western Union agent location. The person receiving the money can pick it up in cash at any Western Union location worldwide. They just need to provide a 10-digit MTCN (Money Transfer Control Number) and their identification. Sometimes, a secret question and answer can be used instead of ID.
Western Union Mobile
In 2007, Western Union announced plans for a mobile money-transfer service. This service would work with mobile phone companies around the world. The idea was to connect Western Union's money transfer system to mobile banking or mobile wallet apps. This would allow people to send and receive money using their phones.
Western Union Connect
In 2015, Western Union launched its Connect service. This service allows users of popular messaging apps like WeChat and Viber to send money. For example, WeChat users can send money to China, the US, and many other countries. Viber users can also send money, with fees depending on the amount sent.
Past Services of Western Union
Communications
Besides satellite communication, Western Union was involved in other communication services:
- They had networks for sending messages over land.
- They offered business communication networks like Telex and TWX.
- They provided leased lines for voice and data communication.
- They offered long-distance telephone service.
- From 1981 to 1986, they had Airfone, a phone service for airplanes.
- For a short time in the early 1980s, they even offered cellular phone service.
Most of these services were stopped by Western Union in the late 1980s. They were not making enough money. The parts of the company that provided these services were sold to other companies. For example, their satellite fleet was sold in 1988, and Airfone was sold in 1986.
Charge Card
In 1914, Western Union was the first company to issue a charge card. This was a new way for people to pay for things.
BidPay
When the internet became popular for shopping, Western Union started online services. BidPay was an online payment service. It was later renamed "Western Union Auction Payments" and then back to BidPay. BidPay stopped working on December 31, 2005.
Western Union's Sponsorships
Western Union has sponsored many events and sports teams. From 2002 to 2003, they were a main sponsor for the Sydney Roosters rugby team. They still sponsor the team today. Western Union also supports many community events around the world. These events help the communities of immigrants who use their money transfer services.
The First Data Western Union Foundation gives money to charities globally. After the 2004 Indian Ocean tsunami, the Foundation gave $1,000,000 to help with relief efforts.
The Denver Nuggets basketball team announced in 2017 that Western Union would be their jersey sponsor for three years.
On August 9, 2017, Liverpool F.C. football club announced that Western Union would be their first-ever sleeve sponsor. They signed a £25 million deal for five years.
Western Union's Role in Early Computer Networks
Western Union telegrams were sent through a system that stored messages and then forwarded them. Early systems used manual telegraphs. Later, they used teleprinters and paper tape to receive, store, and send messages. Their last paper tape system, Plan 55-A (1948–1976), was fully automatic.
Western Union was also a main contractor for the Automatic Digital Network (AUTODIN) program. AUTODIN was a military communication system developed in the 1960s. It was very reliable, working 99.99% of the time. It used old-fashioned punched card machines to send and receive data. At its busiest, the U.S. part of the network handled 20 million messages a month.
Western Union tried to build a new version called AUTODIN II, but they failed. This led to the creation of a new type of network by BBN, which became the basis for the modern Internet. AUTODIN service stopped in 2000.
Another new idea from AUTODIN was Western Union's EasyLink service. This was one of the first email systems for regular people, not just the government. It allowed users to send the same message to many people at once through email, fax, or telex. Users could also do research using its InfoLink feature. EasyLink later became a separate company.
See Also
- 60 Hudson Street – A former headquarters building
- 92 Code – A code used in telegraphy
- Communications in the United States
- Pangram – A sentence using every letter of the alphabet, used by WU to test teleprinters
- Telegram messenger
- Telegraph in United States history
- Western Union, a 1939 schooner
- Western Union splice – A type of electrical wire splice
- Western Union Telegraph Building – Another former headquarters building
