In an effort to serve the NGOs better, the world’s leading money transfer company, Western Union Co.
(WU - Analyst Report
) has announced to expand the services offered by its separate platform – NGO Global Pay. Via NGO GlobalPay, Western Union serves the non-profit, non-government organizations and also benefits those covered by the NGOs to a greater extent.
Western Union started out with NGO GlobalPay back in Dec 2012. It aimed at providing fast and reliable service to NGOs to transfer funds without any delay. The company is bent on serving this demographic group, which it considers underserved.
Under NGO GlobalPay, Western Union has combined its business-to-business payment products offered by Western Union Business Solutions with the global infrastructure of the Western Union Agent network. The company is using its wide agent network of physical locations to connect NGOs around the world.
Western Union provided the NGOs with a number of payment options such as transfer in cash or via bank accounts, mobile phones, and prepaid cards. Under the program, they have been provided with new solutions in order to keep a track on fund disbursement, which will provide greater transparency and accountability.
Also, these organizations are able to protect themselves from any adverse forex movement effects by using currency risk management solutions from Western Union.
With the extension of the service, Western Union NGO GlobalPay will now be able to remit cash to 59 countries. The company is targeting to expand this service to 189 countries by the end of 2013. NGO GlobalPay also has the facility to make payments to mobile wallets in 11 countries in Africa, Asia and Latin America.
Besides, there will be increased flexibility through the option of making bank payments in 130 currencies. NGOs will also get the benefit of tracking their payment from start to end by enhanced reporting.
Though expansion of the service under NGO GlobalPay does not have much business implication for Western Union, this initiative by the company shows its dedication towards the ‘Clinton Global Initiative’ (“CGI”) through its Commitment to Action. CGI is a platform, which encourages organizations and corporations to do their bit in making the world a better place by serving those who need help. The company has so far served 500 NGOs via this initiative.
Western Union carries a Zacks Rank #3 (Hold). Other players FleetCor Technologies, Inc.
(FLT - Snapshot Report
), Portfolio Recovery Associates Inc.
(PRAA - Analyst Report
) both with Zacks Rank #1 (Strong Buy) and American Express Co.
(AXP - Analyst Report
) with Zacks Rank #2 (Buy) are worth investing in.