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Revenue
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue

3. Revenue

The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and the difference between the exchange rate set by the Company to the customer and a rate available in the wholesale foreign exchange market, as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

The Company recognized $4,254.0 million, $4,865.5 million, and $4,625.1 million in revenues from contracts with customers for the years ended December 31, 2022, 2021, and 2020, respectively. There were no material upfront costs incurred to obtain contracts with customers during these same periods. Under the Company’s loyalty programs, which are primarily offered in its money transfer services, the Company must fulfill loyalty program rewards earned by customers. The loyalty program redemption activity has been and continues to be insignificant to the Company’s results of operations for the years ended December 31, 2022, 2021, and 2020, and the Company has immaterial contract liability balances as of December 31, 2022 and 2021, which primarily relate to its customer loyalty programs and other services. Contract asset balances related to customers were also immaterial as of December 31, 2022 and 2021, as the Company typically receives payment of consideration from its customers prior to satisfying performance obligations under the customer contracts. In addition to revenue generated from contracts with customers, the Company recognizes revenue from other sources, including the sale of derivative financial instruments and investment income generated on settlement assets primarily related to money transfer and money order services.

The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Revenues from consumer money transfers are included in the Company’s Consumer-to-Consumer segment, revenues from foreign exchange and payment services are included in the Company’s Business Solutions segment, and revenues from consumer bill payment and other services are not included in the Company’s segments and are reported as Other. See Note 18 for further information on the Company’s segments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the third closing is expected in the second quarter of 2023. See Note 5 for further information regarding this transaction.

Consumer Money Transfers

For the Company’s money transfer services, customers agree to the Company’s terms and conditions at the time of initiating a transaction. In a money transfer, the Company has one performance obligation as the customer engages the Company to perform one integrated service which typically occurs within minutes — collect the customer’s money and make funds available for payment to a designated person in the currency requested. Therefore, the Company recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of the Company’s terms and conditions and payment information has been received by the Company, (ii) the Company has agreed to process the money transfer, and (iii) the Company has completed the processing of the money transfer, so that funds are available to be picked up by the customer's designated receiving party in the case of cash payout. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by the Company to the customer and a rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated.

Foreign Exchange and Payment Services

For the Company’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with the Company to provide payment services on the customer’s behalf. In the majority of the Company’s foreign exchange and payment services, the Company makes payments to the recipient to satisfy its performance obligation to the customer, and therefore, the Company recognizes revenue on foreign exchange and payment services when this performance obligation has been fulfilled. Revenues from foreign exchange and payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and a rate available in the wholesale foreign exchange market.

Consumer Bill Payments and Other

The Company offers bill payment and other services that vary by contractual features, including the types and amounts of fixed charges and with respect to how fees are billed and collected. The identification of the contract with the customer for revenue recognition purposes is consistent with these features for each of the Company’s bill payment and other services. As with consumer money transfers, customers engage the Company to perform one integrated service — collect money from the consumer and process the transaction, thereby providing billers with real-time or near real-time information regarding consumer payments and simplifying the billers’ collection efforts.

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the years ended December 31, 2022, 2021, and 2020 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services (b)

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,553.2

 

 

$

17.9

 

 

$

71.0

 

 

$

58.5

 

 

$

1,700.6

 

Europe and Russia/CIS

 

 

1,056.0

 

 

 

102.3

 

 

 

21.1

 

 

 

—

 

 

 

1,179.4

 

Middle East, Africa, and South Asia

 

 

630.5

 

 

 

0.4

 

 

 

0.4

 

 

 

—

 

 

 

631.3

 

Latin America and the Caribbean

 

 

388.0

 

 

 

0.5

 

 

 

99.8

 

 

 

8.4

 

 

 

496.7

 

East Asia and Oceania

 

 

233.0

 

 

 

12.5

 

 

 

0.5

 

 

 

—

 

 

 

246.0

 

Revenues from contracts with customers

 

$

3,860.7

 

 

$

133.6

 

 

$

192.8

 

 

$

66.9

 

 

$

4,254.0

 

Other revenues(a)

 

 

132.8

 

 

 

63.3

 

 

 

5.1

 

 

 

20.3

 

 

 

221.5

 

Total revenues

 

$

3,993.5

 

 

$

196.9

 

 

$

197.9

 

 

$

87.2

 

 

$

4,475.5

 

 

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,625.7

 

 

$

101.8

 

 

$

73.3

 

 

$

57.1

 

 

$

1,857.9

 

Europe and Russia/CIS

 

 

1,381.3

 

 

 

145.5

 

 

 

5.8

 

 

 

1.1

 

 

 

1,533.7

 

Middle East, Africa, and South Asia

 

 

660.8

 

 

 

2.2

 

 

 

0.6

 

 

 

—

 

 

 

663.6

 

Latin America and the Caribbean

 

 

376.6

 

 

 

3.4

 

 

 

75.8

 

 

 

7.3

 

 

 

463.1

 

East Asia and Oceania

 

 

276.5

 

 

 

69.6

 

 

 

1.1

 

 

 

—

 

 

 

347.2

 

Revenues from contracts with customers

 

$

4,320.9

 

 

$

322.5

 

 

$

156.6

 

 

$

65.5

 

 

$

4,865.5

 

Other revenues(a)

 

 

73.1

 

 

 

99.3

 

 

 

13.3

 

 

 

19.6

 

 

 

205.3

 

Total revenues

 

$

4,394.0

 

 

$

421.8

 

 

$

169.9

 

 

$

85.1

 

 

$

5,070.8

 

 

 

 

Year Ended December 31, 2020

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,605.5

 

 

$

83.6

 

 

$

75.1

 

 

$

57.0

 

 

$

1,821.2

 

Europe and Russia/CIS

 

 

1,330.0

 

 

 

121.1

 

 

 

3.6

 

 

 

1.8

 

 

 

1,456.5

 

Middle East, Africa, and South Asia

 

 

630.0

 

 

 

1.5

 

 

 

0.4

 

 

 

—

 

 

 

631.9

 

Latin America and the Caribbean

 

 

310.1

 

 

 

2.4

 

 

 

75.8

 

 

 

7.9

 

 

 

396.2

 

East Asia and Oceania

 

 

257.4

 

 

 

60.5

 

 

 

1.4

 

 

 

—

 

 

 

319.3

 

Revenues from contracts with customers

 

$

4,133.0

 

 

$

269.1

 

 

$

156.3

 

 

$

66.7

 

 

$

4,625.1

 

Other revenues(a)

 

 

87.0

 

 

 

87.0

 

 

 

14.0

 

 

 

21.9

 

 

 

209.9

 

Total revenues

 

$

4,220.0

 

 

$

356.1

 

 

$

170.3

 

 

$

88.6

 

 

$

4,835.0

 

 

(a)
Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.
(b)
On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The sale will be completed in three closings, with the first and second closings occurring on March 1, 2022 and December 31, 2022, respectively. The third is expected in the second quarter of 2023. See Note 5 for further information regarding this transaction.