In sync with its long term strategy to grow its mobile money transfer service, the money transfer company Western Union Co.
(WU - Analyst Report
), has now introduced mobile money transfer service in Nepal.
In Nepal, Western Union’s mobile money transfer service will be offered in tandem with eSewa, one of the leading digital wallet platforms in the country.
Western Union has picked up eSewa since it is widely recognized in the region and has a customer base of 200,000 registered users.
Nabil Bank Limited, the representative of Western Union and FonePay Pvt. Ltd., the owners of eSewa have developed the service setup.
With the launch of this service eSewa customers opting for this service will be able to receive a Western Union Money Transfer transaction on their mobile phones. They can also opt for remittance via eSewa’s web interface.
Western Union already has a significant presence in Nepal and operates through its retail agent network of more than 5,600 locations.
Western Union foresees Nepal as a good business opportunity, because of its growing remittance volumes. World Bank data found out that Nepal had more than US$4.2 billion in migrant remittance inflows during 2011, which comprises of 22% of the country’s gross domestic product. The World Bank estimates that remittance inflows to Nepal grew approximately 16.7% year over year in 2012.
With the introduction of mobile money transfer service in Nepal, Western Union currently has 20 active partners globally for mobile money transfer. Its mobile money transfer service is now available in 18 countries. Western Union’s mobile money transfer service provides consumers in these countries with the ability to transfer money to a mobile wallet or bank account. Consumers can also initiate transactions from their mobile phones and send money from mobile wallets or bank accounts.
Western Union has also been adding mobile applications to make the service more convenient for its customers.
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 line of money transfer service. The company’s Money Mindset Index, shows that online payments will increase by 39% in 2013 while mobile payment is expected to increase by 12%.
Western Union 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 a faster adoption rate than any other electronic channel.
The company has already in operation mobile money transfer services in many other countries such as Afghanistan, Bangladesh, El Salvador, Guatemala, Indonesia, Kenya, Madagascar, Malaysia, Paraguay, the Philippines, Tanzania, Uganda, Vietnam, and the U.S.
Western Union currently retains a Zacks Rank #3 (Hold).