The world’s leading money transfer company, Western Union Co. (WU: 15.70 -0.0875 -0.55%), yesterday announced that it has tied up with a leading foreign-exchange specialist company, Travelex Group Limited. Western Union intends to offer its international money transfer services in Japan. Western Union has been registered in Japan following the country’s new Financial Settlement Act in June 2009. This Act allows non-bank entities to carry out money transfer business in the region. In anticipation of the Act, earlier during the year in January, Western Union had announced its intention to tie up with Travelex.
Once the regulatory approval is in place, Travelex will become Western Union’s first agent to roll out its money transfer service in Japan.
The Western Union−Travelex alliance is nothing new. Travelex, the forex provider, has been offering the Western Union money transfer service through its 356 retail locations in city centers and across 109 airports worldwide since January 2006. Travelex serves more than 17.5 million consumers in 28 countries each year.
Besides Travelex, Western Union has also roped in Seven Bank for yet another Japan connection. Seven Bank is a unit of Seven & I Holdings Co., providing money transfer service through online banking wherein funds will be transferred from accounts at the bank to pre-registered overseas accounts. The recipients will be able to withdraw money from any of the 350,000 Western Union locations worldwide. Western Union will be able to access 14,000 Automated Teller Machines of Seven Bank, which spans major convenience stores in Japan.
Western Union is trying to build on the huge demand for remittance services among approximately 2.2 million immigrant workers in Japan. With its ageing demography, Japan is increasingly dependent on foreign workers to fill the gap. Also, with the last recession reported to have ended in March 2009, the economy in Japan is steadily recovering, attracting people from round the world.
Western Union is aggressively partnering with banks across the globe to increase its network. During February, the company announced that it has entered into an agreement with Chinese banks – the Bank of Jilin, Fugan Hashi Bank, Bank of Harbin, Fujian Haixia Bank and Zhejiang Chouzhou Commercial Bank – to provide the money transfer services.
During March, Western Union entered into an agreement with Brazil-based Banco Bradesco (BBD: 18.63 +0.50 +2.76%) to offer global money transfer service at most of the bank’s branches in Brazil . During April, Western Union completed the roll-out of its global money transfer service at more than 1,300 Fifth Third Bancorp (FITB: 12.94 +0.02 +0.15%) banking center locations in 12 states in North America. During May, it announced to offer its money transfer service through The Philippine National Bank, Philippines ‘ largest offshore bank network.
Last month, Western Union announced a tie-up with a leading Turkish bank, Yapi Kredi, to offer money remittance services in Turkey. It also announced a venture with OMV, one of the largest integrated oil and gas groups in Central Europe, to provide money transfer services in the European region.
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