The Western Union Company WU recently announced that all Western Union mobile app users in the U.S. will be able to make payments through Apple Pay. The Western Union app with Apple Pay will comprise Touch ID, which will enable money transfers simply through the touch of a finger.

Western Union has been expanding its digital footprint across the globe. Consumers can now send money globally via WU.com in 37 countries, and the Western Union mobile app in 18 countries (five of these apps offer omni-channel choice with digital or cash pay-in). These apart, the company has formed multiple banking and digital alliances to facilitate transfer of money.

The option to transfer money through the Western Union app with Apple Pay will become available to the U.K. customers later this year. By introducing the aforesaid service to the U.S. and thereafter the U.K., Western Union expects to ramp up its mobile platform and make way for convenient and reliable money transfers.

Western Union has been upgrading its offerings to keep pace with the technological advancement in the money transfer business. It has already launched services like prepaid, westernunion.com, and mobile money transfer. The company also introduced “WU Connect” to offer cross-border money transfer services on third-party platforms. Its global digital initiatives include the launch of a mobile app across 16 countries. The company also initiated “WU Way” to transform its operating model, improve customer experience and drive cost efficiencies. We believe that initiatives like these will bolster the company’s long-term growth.

The money transfer industry is growing traction owing to the increasing need for money remittance due to globalization and a rapid shift from physical money transfers to electronic money transfers. Along with Western Union, other payment service companies like MasterCard Inc. (MA), Visa Inc. (V) and Green Dot Corporation (GDOT) are looking to tap the huge growth opportunities offered by the industry.

Despite the favorable broader factors the Zacks Rank #3 (Hold) stock has underperformed the industry due to headwinds like weak underwriting results, higher compliance costs. Over the past one year, Western Union shares lost 0.05%, whereas the Zacks categorized Financial Transaction Services industry increased nearly 15%.

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