Western Union Co.
(WU - Analyst Report
) has introduced mobile banking with U.S. Bank, a subsidiary of U.S. Bancorp
(USB - Analyst Report
). With the introduction of this service, the customers of U.S. Bank will be able to transfer money via their mobile application. Gradually, the customers will also be able to use their online banking portal.
So far U.S. Bank had provided its customers with Western Union money transfer service through its branches.
All the U.S. Bank customers, who meet the requisite eligibility criterion, will now see the Western Union logo in their person-to-person money transfer options. Online banking customers have been upgraded to a new online banking platform which will enable them to see and select Western Union as a funds transfer option.
Western Union enhanced service agreement with U.S. Bank signals its long term strategy towards a deeper footprint in the banking sector. Over time we expect the company to provide similar services in conjunction with other banks. Moreover the company is aggressively designing mobile based services since mobile usage is increasing day by day.
Western Union is aggressively developing its mobile money transfer network across the globe. It 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 option 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 already operates 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).