In an effort to provide additional service in the United Arab Emirates region, Western Union Co.
(WU - Free Report
) , has announced launch of prepaid payroll card in partnership with Commercial Bank of Dubai.
This service by Western Union marks a continuing commitment to create innovative solutions that address unmet needs in the UAE marketplace. Via this offering the company will be able to tap the market opportunity created by new regulation in the UAE.
As per the new regulation called Wages Protection System floated by the Government of UAE, all the workers will mandatorily receive their wages electronically. They will therefore receive their wages either directly into their bank accounts or credited into prepaid cards.
Once they receive the funds in their cards, it can be used to make payment for any transaction directly from the prepaid card. Immigrants can also remit money back home via thus card. This facility will save customers any waiting time outside an ATM.
Western Union is already present in UAE. It has tie up with Emirates NBD, a leading regional bank which offers Account-Based Money Transfer service to the accountholders of Emirates NBD.
The card can also be used at other Western Union Agent locations in the UAE to remit funds to more than 515,000 Western Union locations in 200 countries and territories.
Gradually Western Union will also introduce a service whereby workers in the UAE will be able to send funds directly from the card online or with their phones.
Another company MoneyGram International Inc.
(MGI - Free Report
) also provides services in UAE.
Western Union retains a Zacks Rank #4 (Sell). Other players – Visa Inc.
(V - Free Report
) and Outerwall Inc.
both with Zacks Rank #2 (Buy) are worth considering