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Settlement Assets and Obligations (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Settlement Assets and Obligations

Settlement assets and obligations consisted of the following (in millions):

		September 30, 2023
Settlement assets:
Cash and cash equivalents		$	484.4
Receivables from agents and others			1,633.8
Less: Allowance for credit losses			(20.5	)
Receivables from agents and others, net			1,613.3
Investment securities			1,383.3
Less: Allowance for credit losses			(0.2	)
Investment securities, net			1,383.1
Total settlement assets		$	3,480.8
Settlement obligations:
Money transfer, money order, and payment service payables		$	2,732.6
Payables to agents			748.2
Total settlement obligations		$	3,480.8

		December 31, 2022
Settlement assets:
Cash and cash equivalents		$	708.1
Receivables from agents, Business Solutions customers, and others			1,533.2
Less: Allowance for credit losses			(13.0	)
Receivables from agents, Business Solutions customers, and others, net			1,520.2
Investment securities			1,333.7
Less: Allowance for credit losses			(0.3	)
Investment securities, net			1,333.4
Total settlement assets (a)		$	3,561.7
Settlement obligations:
Money transfer, money order, and payment service payables		$	2,843.3
Payables to agents			718.4
Total settlement obligations (a)		$	3,561.7

(a)Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $74.9 million as of December 31, 2022 (see Note 4).

Summary of Activity in the Allowance for Credit Losses

The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions):

		Agents and				Business Solutions
		Others				Customers
Allowance for credit losses as of January 1, 2023		$	11.4			$	1.6
Current period provision for expected credit losses (a)			(0.4	)			0.4
Write-offs charged against the allowance			(4.2	)			(0.7	)
Recoveries of amounts previously written off			1.8				—
Impacts of foreign currency exchange rates and other			0.1				0.7
Allowance for credit losses as of March 31, 2023			8.7				2.0
Current period provision for expected credit losses (a)			5.3				1.0
Write-offs charged against the allowance			(4.1	)			(2.4	)
Recoveries of amounts previously written off			1.4				—
Impacts of foreign currency exchange rates and other			0.4				(0.6	)
Allowance for credit losses as of June 30, 2023			11.7				—
Current period provision for expected credit losses (a)			17.2				—
Write-offs charged against the allowance			(7.3	)			—
Recoveries of amounts previously written off			1.0				—
Impacts of foreign currency exchange rates and other			(2.1	)			—
Allowance for credit losses as of September 30, 2023		$	20.5			$	—

		Agents and				Business Solutions
		Others				Customers
Allowance for credit losses as of January 1, 2022		$	18.0			$	5.7
Current period provision for expected credit losses (a)			1.9				0.4
Write-offs charged against the allowance			(3.1	)			(0.4	)
Recoveries of amounts previously written off			1.7				—
Impacts of foreign currency exchange rates, divestitures, and other			(0.1	)			(4.2	)
Allowance for credit losses as of March 31, 2022			18.4				1.5
Current period provision for expected credit losses (a)			1.8				2.1
Write-offs charged against the allowance			(1.3	)			(1.4	)
Recoveries of amounts previously written off			1.0				—
Impacts of foreign currency exchange rates and other			(3.0	)			(0.5	)
Allowance for credit losses as of June 30, 2022			16.9				1.7
Current period provision for expected credit losses (a)			3.4				0.5
Write-offs charged against the allowance			(8.1	)			(2.1	)
Recoveries of amounts previously written off			1.8				—
Impacts of foreign currency exchange rates and other			(2.4	)			0.2
Allowance for credit losses as of September 30, 2022		$	11.6			$	0.3

(a)Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit-related. The Company recognized losses that were not credit-related of $9.1 million, $6.1 million, and $10.9 million for the three months ended March 31, 2023, June 30, 2023, and September 30, 2023, respectively, and $10.0 million, $7.7 million, and $10.2 million for the three months ended March 31, 2022, June 30, 2022, and September 30, 2022, respectively.

Components of Investment Securities

The components of investment securities are as follows (in millions):

										Gross				Gross				Net
		Amortized				Fair				Unrealized				Unrealized				Unrealized
September 30, 2023		Cost				Value				Gains				Losses				Losses
Settlement assets:
Cash and cash equivalents:
Money market funds		$	6.4			$	6.4			$	—			$	—			$	—
Available-for-sale securities:
State and municipal debt securities (a)			1,062.3				981.0				0.2				(81.5	)			(81.3	)
Asset-backed securities			188.5				187.5				0.1				(1.1	)			(1.0	)
Corporate debt securities			159.9				152.9				0.1				(7.1	)			(7.0	)
State and municipal variable-rate demand notes			48.3				48.3				—				—				—
United States government agency mortgage-backed securities			14.6				13.6				—				(1.0	)			(1.0	)
Total available-for-sale securities			1,473.6				1,383.3				0.4				(90.7	)			(90.3	)
Total investment securities		$	1,480.0			$	1,389.7			$	0.4			$	(90.7	)		$	(90.3	)

										Gross				Gross				Net
		Amortized				Fair				Unrealized				Unrealized				Unrealized
December 31, 2022		Cost				Value				Gains				Losses				Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds		$	11.7			$	11.7			$	—			$	—			$	—
Available-for-sale securities:
State and municipal debt securities (a)			1,010.5				933.3				0.3				(77.5	)			(77.2	)
Asset-backed securities			183.4				184.1				0.8				(0.1	)			0.7
Corporate debt securities			153.5				146.9				0.3				(6.9	)			(6.6	)
State and municipal variable-rate demand notes			48.9				48.9				—				—				—
United States government agency mortgage-backed securities			21.5				20.5				—				(1.0	)			(1.0	)
Total available-for-sale securities			1,417.8				1,333.7				1.4				(85.5	)			(84.1	)
Total investment securities		$	1,429.5			$	1,345.4			$	1.4			$	(85.5	)		$	(84.1	)

(a)The majority of these securities are fixed-rate instruments.

Summary of Investment Securities in Unrealized Position

The following summarizes investment securities that were in an unrealized loss position as of September 30, 2023, by the length of time the securities were in a continuous loss position (in millions):

Less Than One Year		Number of Securities				Fair Value				Unrealized Losses
State and municipal debt securities			106			$	343.0			$	(11.0	)
Asset-backed securities			28				160.7				(1.1	)
Corporate debt securities			18				32.2				(0.8	)

One Year or Greater		Number of Securities				Fair Value				Unrealized Losses
State and municipal debt securities			284			$	616.4			$	(70.5	)
Corporate debt securities			22				99.5				(6.3	)
United States government agency mortgage-backed securities			11				13.0				(1.0	)

Contractual Maturities of Debt Securities

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of September 30, 2023 (in millions):

		Fair Value
Due within 1 year		$	106.8
Due after 1 year through 5 years			631.9
Due after 5 years through 10 years			397.0
Due after 10 years			247.6
Total		$	1,383.3

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