MoneyGram 2009 Annual Report Download - page 6

Table of Contents
In 2009, our Global Funds Transfer segment had total fee and investment revenue of $1,027.9 million. We continue to focus on the
growth of our Global Funds Transfer segment outside of the United States. During 2009, 2008 and 2007, operations outside of the United
States generated 27 percent, 25 percent and 21 percent, respectively, of our total company fee and investment revenue, and 31 percent of
our Global Funds Transfer segment fee and investment revenue in all three years.
The Global Funds Transfer segment is managed as two geographical regions, the Americas and EMEAAP, to coordinate sales, agent
management and marketing activities. The Americas region includes the United States, Canada, Mexico and Latin America (including the
Caribbean). The EMEAAP region includes Europe, the Middle East, Africa and the Asia Pacific region. In 2009, we added 14,000 net
locations to our global agent network.
As of December 31, 2009, we had 66,000 agent locations in the Americas. We added 3,200 Canada Post locations to our network, making
our money transfer services available coast to coast across Canada. The addition of agent locations in the United States and Canada were
more than offset by numerous agent closures during the year. In Brazil, we added 1,000 Itau Unibanco locations, bringing money transfer
services to the bank's network of nearly 5,000 locations. We also added nearly 1,200 locations in Mexico, Ecuador, Colombia and the
Dominican Republic.
In the EMEAAP region, we added 16,600 agent locations in several key markets. Through our agreement with M. Lhuillier Financial
Services, Inc., we added 1,200 agent locations in the Philippines. In India, we have relationships with 18 banks and now have more than
22,000 agent locations. The Bank of China offers our services at all of its 200-plus locations in Beijing and is expanding its offering of
our services into its full network of 10,000 locations across the mainland. In Saudi Arabia, National Commerce Bank now offers our
money transfer services at its 1,400 ATM locations, creating one of the largest money transfer networks in Saudi Arabia. We also
significantly expanded our agent locations in Kenya, Ethiopia, Angola, Morocco, Thailand, South Korea, Romania, Cyprus, Sweden and
Serbia. As of December 31, 2009, we had 124,000 agent locations in the EMEAAP region, representing a 16 percent increase from
December 31, 2008.
We provide Global Funds Transfer products and services utilizing a variety of proprietary point-of-sale platforms. Our platforms include
AgentConnect®, which is integrated into an agent's point-of-sale system, and DeltaWorks® and Delta T3®, which are separate software
and stand-alone device platforms. Through our FormFree® service, customers may contact our call center and a representative will
collect transaction information over the telephone, entering it directly into our central data processing system. We also operate two
customer care centers in the United States, and we contract for additional call center services in Bulgaria and the Dominican Republic.
We provide call center services 24 hours per day, 365 days per year and provide customer service in over 30 languages.
Money Transfers. We derive our money transfer revenues primarily from consumer transaction fees and the management of currency
exchange spreads on money transfer transactions involving different "send" and "receive" currencies. We have corridor pricing
capabilities that enable us to establish different consumer fees and foreign exchange rates for our money transfer services by location, for
a broader segment such as defined ZIP code regions or for a widespread direct marketing area. We strive to maintain our money transfer
consumer fees at a price point below our primary competitor and above the niche players in the market.
As of December 31, 2009, we offer money transfers to consumers in a choice of local currency, United States dollars or euros in 136
countries ("multi-currency"). Our multi-currency technology allows us to execute our money transfers directly between and among
several different currencies. Where implemented, these capabilities allow our agents to settle with us in local currency and allow
consumers to know the amount that will be received in the local currency of the receiving country, or in United States dollars or euros in
certain countries.
As of December 31, 2009, our agent network consisted of approximately 190,000 money transfer agent locations in approximately 190
countries and territories worldwide. These agent locations are in the following geographic regions: 43,700 locations in Western Europe
and the Middle East; 39,500 locations in North America; 26,700 locations in the Indian subcontinent; 26,500 locations in Latin America
(including Mexico, which represents 12,900 locations); 25,800 locations in Eastern Europe; 19,800 locations in Asia Pacific; and 8,000
locations in Africa.
Bill Payment Services. We derive our bill payment revenues primarily from transaction fees charged to consumers for each bill payment
transaction completed. Our bill payment services allow consumers to make urgent payments or pay routine bills through our network to
certain creditors ("billers"). We maintain relationships with billers in key
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