UPDATE 1-Western Union cuts outlook on rising competition

* 3rd-quarter EPS $0.45 vs $0.38 last year

* Sees full-year GAAP EPS $1.60-$1.63

* Sees full-year non-GAAP EPS $1.65-$1.68

Oct 30 (Reuters) - Western Union Co, the world's largest payment transfer company, cut its full-year forecast as rising competition and weak markets weigh on its business.

``Business was challenging, as soft global economic conditions, compliance related changes, and competitive pressures in certain money transfer corridors impacted revenues,'' Chief Executive Hikmet Ersek said in a statement.

The company said it was planning to cut costs and save $30 million annually by 2014.

For the full year, it expects adjusted earnings of $1.65 to $1.68 per share. The company had previously forecast adjusted earnings of $1.73 to $1.77 per share for the year.

Western Union raised its share buyback plan to $750 million and its annual dividend by 25 percent to 50 cents.

Third-quarter net income rose to $269.5 million, or 45 cents per share, from $239.7 million, or 38 cents per share, a year earlier.

The company's shares closed at $17.93 on Friday on the New York Stock Exchange.