Western Union’s European digital bank subsidiary is closing accounts after more than 20 years of operation.
Western Union has announced today (27 July) it will be shutting down its European digital bank after a review of its products and services.
All Western Union Digital Bank, operated by Western Union International Bank GmbH, accounts will close in two months after its users have received the closure notice. Users will also receive a confirmation once their account is closed.
Once the account is closed, users will no longer have access to the Western Union Digital Bank app, as well as being unable to use the debit cards linked to the account.
Payment attempts to send to closed Western Union Digital Bank accounts will be rejected and returned to the sender. Any funds that remain in the account when closed will be handled in compliance with the relevant local European banking laws and regulations.
Western Union has called on users to withdraw or transfer their remaining funds from the account, contact employers or any other organisations which payout to the account to provide an alternative bank account to receive funds, and download and save any account statements that would be relevant for future use.
Premium Western Union Digital Bank users have also been told to cancel their Premium subscription accounts before the closure date in two months.
The bank confirmed its money transfer services will still be available, as well as the Western Union website and app.
“After careful consideration, we have decided to discontinue Western Union Digital Bank. As a result, all Western Union Digital Bank accounts will be closed two months after users have received their closure notice, in accordance with our General Terms and Conditions,” said a Western Union statement.
“We regularly review our products and services. Following one of these reviews, we decided to discontinue Western Union Digital Bank.”
Payment Expert has contacted Western Union for further information
20 years of Western Union’s European digital accounts ends
Western Union International Bank GmbH is a subsidiary of the Western Union Company which was formed in 2004 to offer specialised banking and financial services to its European customer base.
While digital or online banking has become the predominant form of banking for many across the world, it was still finding its way into the mainstream as digital banking infrastructure began to mature.
Based in Vienna, Western Union International Bank GmbH was regulated by the Austrian Financial Market Authority which allowed the digital bank to offer cross-border payments and account services across the European Economic Area (EEA).
Over the last 20 years, the digital bank enabled online remittances for users to perform direct account transfers from mobile wallets. Western Union launched specialised FX offerings for small businesses, while also enabling its Mastercard-issued cards to connect to global banks and settlement switches.
Its most recent update was upgrading its core infrastructure to support advanced payment hubs, as well as onboard Europe’s new Verification of Payee mandate.
