In an effort to expand its mobile money transfer service,
Western Union Co.
) has announced a strategic agreement with,
). Per the agreement the company has certified Ericsson Wallet
Platform via which customers using their mobile phones can
transfer money through their phones.
Both the companies will complement each other in the capability,
given a strong brand image enjoyed by them in their respective
The company is aggressively embracing the use of new age
technology for providing flawless service to its customers.
Mobile payments are gaining momentum due to convenience and
round-the-clock accessibility. This service is expected to
witness faster adoption rate than any other electronic channel.
The company has already in operation its mobile money transfer
service in many of the regions of the world such as Afghanistan,
Bangladesh, El Salvador, Guatemala, Indonesia, Kenya, Madagascar,
Malaysia, Paraguay, the Philippines, Tanzania, Uganda, Vietnam,
and the U.S.
We believe that Western Union's participation in electronic
channels like prepaid, mobile, and internet will boost its
near-term earnings which should help offset pressures on its
traditional paper-based product offerings.
Of late Western Union had a rough patch with regulatory
compliance issues due to which it had to cancel its agents in the
Mexican region. The company also suffered revenue loss on account
of these negative developments.
Western Union is trying to offset these pressures by developing
and expanding additional new age services in the form of prepaid,
online money transfer, bank to bank direct transfer etc.
Earlier during the month
Moneygram International Inc.
), another company in the money transfer industry announced its
mobile money transfer facility to the users of iPhone, Android or
Windows 8 mobile devices in the U.S.
Among player in the financial services industry -
H&R Block, Inc.
) with Zacks Rank #2 (Buy) is worth considering.
ERICSSON LM ADR (ERIC): Free Stock Analysis
BLOCK H & R (HRB): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
WESTERN UNION (WU): Free Stock Analysis
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