Western Union is feeling the squeeze from both Facebook’s new cryptocurrency Libra and Ripple’s investment in MoneyGram. The payment processor’s stock tanked 3% today as investors grow worried the company may soon become irrelevant.

Western Union is one of the oldest financial service companies in the world. Founded in 1851, it specializes in money transfers and payment processing. For a long time, it was even a quasi-monopoly in most jurisdictions. However, increasing pressure from alternatives is pushing the corporate giant on the defensive.

Western Union’s stock dropped 3% today as Facebook announced its new cryptocurrency. Called Libra, it is meant to be a ‘global currency’ to make cross-border payments simple, near-instant and inexpensive. Then, just the day before, Ripple announced that it was buying a $50M stake in MoneyGram. Both announcements were a massive blow to Western Union, which could see its archaic model fall behind emerging technologies.

Western Union has always been notorious for its high fees. There’s something like a $5 fee for transfers up to $50 and up to $76 in fees for a $900 transfer. It’s a miracle the payment transfer service is even still being used, in this day and age.

Writing on the Wall

Western Union has a lot to lose from the current cryptocurrency boom. Although the company offers services in some 200 countries and in 130 currencies, it lacks the digital organization to compete. Facebook, in comparison, possess a reach of over 2B people. With its services completely digitized, it can offer payment processing across borders for a tiny fraction of the cost compared to Western Union.

The writing is clearly on the wall for Western Union. Although some investors might see the drop today as a minor blip, it points to a greater unlying problem for the company. In fact, since Bitcoin’s invention, it was obvious where the digital age was heading: towards a paradigm where money moves as quickly as information. Libra just might be the final nail in the coffin for Western Union.

Regardless of the company’s infrastructure, it simply cannot compete. In today’s fast-changing economy, those who cannot keep up with technological, are doomed to become irrelevant. With Facebook and Ripple squeezing Western Union, that just might be the catalyst for its downfall.

Do you agree that Western Union may not survive if it continues operating as it has? Let us know your thoughts in the comments below.