MoneyGram 2006 Annual Report Download - page 8

Table of Contents
market our bill payment services directly to billers. Finally, we have a dedicated team of sales and marketing professionals that market
our PrimeLink official check services, money transfer services, PrimeLinkplus services, money orders and ACH services to financial
institutions. Our international sales and marketing for money transfer services is conducted by dedicated regional sales and marketing
teams that are generally located in or near their regions: Western Europe, including the United Kingdom; Eastern Europe; Asia; the
Middle East; Africa; and Mexico, Latin America and the Caribbean.
As an investment in our money transfer brand recognition, we increased our marketing expenses by 39 percent in 2006 compared to
2005. Our sales and marketing efforts continue to be supported by a wide range of consumer advertising methods. A core focus of
building our brand awareness is signage, both ensuring that our signs are displayed at agent locations, as well as maintaining consistency
in our signage globally. We introduced our "red shops" concept, which consists of an agent location heavily branded with MoneyGram
signage, including red paint for the front of the store. We also reach our consumers using traditional media such as television, radio and
print. Finally, we utilize street teams that consist primarily of contractors who engage in a variety of activities including attending local
ethnic festivals and events to introduce our products and services to potential consumers. We redesigned our website in 2006 and made it
available in 44 languages and introducing a "price-it" tool to assist our customers with money transfer pricing questions. We also made a
new agent location function available on our website. We continue to look at ways to enhance our brand awareness.
Product Development and Enhancements
Our product development activities have focused on new ways to transfer money and pay bills through enhancements to our current
services and the development of new products and services. Recent enhancements and new products supplement our Global Funds
Transfer and Payment Systems segments. We believe these new features and products will provide customers with added flexibility and
convenience to help meet their financial services needs.
Product Enhancements: In 2005, we developed our multi-currency platform, an enhancement that allows a sender of a money transfer to
choose among currencies to be received by the beneficiary. The currencies available depend on the send and receive country. We began
implementing this enhancement in February 2006 and released it in 34 countries during 2006. We also developed directed sends in 2005
to allow a sender to direct a money transfer to a specific address, onto an ATM/debit card or into a bank account. This enhancement was
first introduced in the Philippines in 2005 and we began the implementation of the enhancement in Mexico this year. Additionally in
2006, the Company released a new transaction management tool which allows its ExpressPayment billers to review a consumer payment
on-line prior to accepting or rejecting the payment. This technology is particularly useful within certain industries such as the mortgage,
auto loan and insurance industries that may have time-sensitive financial or legal implications, such as repossessions or foreclosures.
Finally in 2006, we received clearance and were able to begin offering consumers in Mexico the ability to send money from Mexico to
other locations domestically and internationally.
New Products. We continued to offer the MoneyGram Prepaid MasterCard card program in 2006, with the cards available for purchase
and reload at designated MoneyGram agent locations throughout the United States. In 2006, we also began the implementation of a full
suite of ACH and electronic bill payment services that provide consumers with pay-by-telephone, pay-by-IVR and pay-by-web options.
In November 2006, we began a limited pilot of a new utility bill payment service, utilizing the same point-of-sale platforms as our money
order, money transfer and ExpressPayment products. We plan to implement our new utility bill payment services throughout the United
States in 2007.
Infrastructure Development. The Company is currently working to implement a new system to provide for improved connections
between the agent and our marketing, sales, customer service and accounting functions. The new system and associated processes are
intended to increase the flexibility of our back office, thereby improving operating efficiencies and relationships with external parties.
Competition
The industries in which we operate are very competitive and we face a variety of competitors across our businesses. New competitors or
alliances among established companies may emerge. Consolidation among payment services companies, and money transmitters in
particular, has occurred and may continue. We compete for agents and financial institution customers on the basis of value, service,
quality, technical and operational differences, price
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