Settlement Assets and Obligations (Tables)
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3 Months Ended |
Mar. 31, 2025 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Settlement Assets and Obligations |
Settlement assets and obligations consisted of the following (in millions):
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March 31, 2025 |
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December 31, 2024 |
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Settlement assets: |
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Cash and cash equivalents |
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$ |
157.2 |
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$ |
631.6 |
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Receivables from agents and others |
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1,942.3 |
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1,421.7 |
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Less: Allowance for credit losses |
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(18.5 |
) |
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(24.7 |
) |
Receivables from agents and others, net |
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1,923.8 |
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1,397.0 |
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Investment securities |
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1,440.5 |
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1,332.3 |
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Less: Allowance for credit losses |
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— |
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(0.1 |
) |
Investment securities, net |
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1,440.5 |
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1,332.2 |
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Total settlement assets |
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$ |
3,521.5 |
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$ |
3,360.8 |
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Settlement obligations: |
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Money transfer, money order, and payment service payables |
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$ |
2,818.2 |
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$ |
2,655.5 |
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Payables to agents |
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703.3 |
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705.3 |
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Total settlement obligations |
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$ |
3,521.5 |
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$ |
3,360.8 |
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| 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 (in millions):
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Agents and |
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Others |
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Allowance for credit losses as of January 1, 2025 |
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$ |
24.7 |
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Current period provision for expected credit losses (a) |
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(3.8 |
) |
Write-offs charged against the allowance |
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(10.4 |
) |
Recoveries of amounts previously written off |
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7.8 |
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Impacts of foreign currency exchange rates and other |
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0.2 |
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Allowance for credit losses as of March 31, 2025 |
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$ |
18.5 |
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Agents and |
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Others |
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Allowance for credit losses as of January 1, 2024 |
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$ |
15.4 |
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Current period provision for expected credit losses (a) |
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— |
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Write-offs charged against the allowance |
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(5.2 |
) |
Recoveries of amounts previously written off |
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2.3 |
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Impacts of foreign currency exchange rates and other |
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(0.6 |
) |
Allowance for credit losses as of March 31, 2024 |
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$ |
11.9 |
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(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.
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| Components of Investment Securities |
The components of investment securities are as follows (in millions):
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Gross |
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Gross |
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Net |
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Amortized |
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Fair |
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Unrealized |
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Unrealized |
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Unrealized |
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March 31, 2025 |
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Cost |
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Value |
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Gains |
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Losses |
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Gains/(Losses) |
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Settlement assets: |
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Cash and cash equivalents: |
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Money market funds |
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$ |
20.2 |
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$ |
20.2 |
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$ |
— |
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$ |
— |
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$ |
— |
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Available-for-sale securities: |
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State and municipal debt securities (a) |
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1,090.7 |
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1,067.0 |
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7.1 |
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(30.8 |
) |
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(23.7 |
) |
Asset-backed securities |
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205.7 |
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208.6 |
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2.9 |
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— |
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2.9 |
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Corporate debt securities |
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156.0 |
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157.2 |
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3.7 |
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(2.5 |
) |
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1.2 |
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State and municipal variable-rate demand notes |
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1.4 |
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1.4 |
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— |
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— |
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— |
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United States government agency mortgage-backed securities |
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6.4 |
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6.3 |
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— |
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(0.1 |
) |
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(0.1 |
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Total available-for-sale securities |
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1,460.2 |
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1,440.5 |
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13.7 |
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(33.4 |
) |
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(19.7 |
) |
Total investment securities |
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$ |
1,480.4 |
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$ |
1,460.7 |
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$ |
13.7 |
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$ |
(33.4 |
) |
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$ |
(19.7 |
) |
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Gross |
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Gross |
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Net |
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Amortized |
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Fair |
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Unrealized |
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Unrealized |
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Unrealized |
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December 31, 2024 |
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Cost |
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Value |
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Gains |
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Losses |
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Gains/(Losses) |
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Settlement assets: |
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Cash and cash equivalents: |
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Money market funds |
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$ |
32.6 |
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$ |
32.6 |
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$ |
— |
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$ |
— |
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$ |
— |
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Available-for-sale securities: |
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State and municipal debt securities (a) |
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1,068.1 |
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1,027.6 |
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2.7 |
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(43.2 |
) |
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(40.5 |
) |
Asset-backed securities |
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208.6 |
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211.2 |
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2.6 |
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— |
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2.6 |
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Corporate debt securities |
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87.5 |
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85.0 |
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0.8 |
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(3.3 |
) |
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(2.5 |
) |
State and municipal variable-rate demand notes |
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1.4 |
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1.4 |
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— |
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— |
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— |
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United States government agency mortgage-backed securities |
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7.3 |
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7.1 |
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— |
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(0.2 |
) |
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(0.2 |
) |
Total available-for-sale securities |
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1,372.9 |
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1,332.3 |
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6.1 |
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(46.7 |
) |
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(40.6 |
) |
Total investment securities |
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$ |
1,405.5 |
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$ |
1,364.9 |
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$ |
6.1 |
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$ |
(46.7 |
) |
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$ |
(40.6 |
) |
(a)The majority of these securities are fixed-rate instruments.
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| Summary of Investment Securities in Unrealized Position |
The following summarizes investment securities that were in an unrealized loss position as of March 31, 2025, by the length of time the securities were in a continuous loss position (in millions, except number of securities):
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Less Than One Year |
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Number of Securities |
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Fair Value |
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Unrealized Losses |
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State and municipal debt securities |
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45 |
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$ |
119.0 |
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$ |
(1.8 |
) |
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One Year or Greater |
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Number of Securities |
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Fair Value |
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Unrealized Losses |
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State and municipal debt securities |
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220 |
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$ |
481.2 |
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$ |
(29.0 |
) |
Corporate debt securities |
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10 |
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39.9 |
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(2.5 |
) |
United States government agency mortgage-backed securities |
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8 |
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5.1 |
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(0.1 |
) |
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| Contractual Maturities of Debt Securities |
The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of March 31, 2025 (in millions):
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Fair Value |
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Due within 1 year |
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$ |
95.8 |
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Due after 1 year through 5 years |
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578.4 |
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Due after 5 years through 10 years |
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344.3 |
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Due after 10 years |
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|
422.0 |
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Total |
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$ |
1,440.5 |
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