In a continuous effort to grow its mobile money transfer
business, world's leading money transfer company
Western Union Co.
) has entered into a partnership with Paga, a leading independent
payment processor in Nigeria. Paga has tie ups with all mobile
networks in the country and offers easy, fast and safe mobile
banking services to its current base of 1.2 million users.
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Through this deal, Paga users will now be able to receive a
Western Union Money Transfer transaction directly into their Paga
account. Using Paga's multi-channel platform, consumers will now
have the option to obtain the money by sending it to a bank
account, withdrawing from an ATM, or through Paga's network of
over 4,000 agents in Nigeria.
The deal complements Western Union's retail agent network of over
500,000 locations globally, of which 4900 locations are based in
Western Union perceives Nigeria as an attractive market. The
country had more than $21 billion in migrant remittance inflows
in 2012, which constituted approximately 9% of the nation's gross
domestic product. The company introduced its mobile money
transfer in Nigeria last year by signing a deal with eTranzact.
Money transfer services through electronic channels, which
include online, account based, and mobile money transfers, taken
together constituted approximately 5% of U.S. consolidated
revenues for the year ended Dec 31, 2013.
Mobile money transfer has increased over the recent past owing to
its round-the-clock accessibility. Money transfer providers deem
the mobile platform as a key element within their business
strategy - as one that offers their customers choice as well as
convenience. Likewise, this service is expected to witness a
faster adoption rate than any other electronic channel.
Western Union is aggressively expanding its mobile money transfer
network across the globe. It currently has 20 active partners
around the world with mobile money transfer services now
available in 18 countries. Through the mobile platform, Western
Union allows its users in these countries to transfer money to
and from a mobile wallet or bank account.
Western Union is intent on growing its mobile payment channel of
business (SMS and mobile web, as well as walk-in, phone and
online payment services), since it foresees tremendous growth in
this particular line of money transfer service.
The company has also been adding several mobile applications to
enhance convenience for its customers.
Western Union currently retains a Zacks Rank #3 (Hold).
Other players providing similar money transfer facilities are
Moneygram International Inc.
Euronet Worldwide Inc.