In an effort to serve the NGOs in a better way, world’s leading money transfer company, Western Union Co. (WU - Free Report) has announced to form a separate platform: NGO Global Pay. The service will be dedicated to serve the non-profit, non-government organizations. It will also be extended to the people served by these organizations.
Western Union’s fast and reliable service will enable NGOs to transfer funds without any delay. The company is bent on serving this section of group, which it considers underserved. It will start selecting the NGO partners in November 2012 and will continue till 2013.
Under NGO Global Pay, Western Union will combine its business-to-business payment products offered by Western Union Business Solutions with the global infrastructure of the Western Union Agent network. The company will use its wide agent network at around 510,000 physical locations to connect NGOs to the people they serve across more than 200 countries and territories around the world.
The NGOs will get a number of payment options such as transfer in cash or via bank accounts, mobile phones, and prepaid cards. Under the program, these will be provided with ways to keep a track on fund disbursement, which will provide greater transparency and accountability.
Also, these organizations will be able to protect themselves from any adverse forex movement effects by using currency risk management solutions from Western Union. These will also receive knowledge on the use of mobile to transfer money.
Global Pay idea for NGOs is one of Western Union’s steps to show 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.
Western Union, which closely competes with MoneyGram International, Inc.
(MGI - Free Report
) . The stock currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on its shares.