Western Union 2006 Annual Report Download - page 15

Second is our brand, which is synonymous with trust and
dependability. The third is our technology — an established
system that handles on average more than 1 million trans-
actions daily, and moves money from one place to another
within minutes. And fourth is the experience and advice
provided by our agents and employees.
LEADING OUR CONSUMERS TO BETTER LIVES
Never before has the number of people living outside their
home countries been higher than it is today. According to
a study done by the United Nations, right now there are
more than 191 million people living outside their country
of origin, and that number is expected to continue to grow.
Additionally, The Aite Group estimated that the total
amount of cross-border remittances was $269 billion in
2006, of which Western Union has a 17.4% share. This,
without question, presents a tremendous opportunity for
growth — especially as we already have the network and
capacity in place to serve our customers.
There is no limit to our ability to develop consumer
convenience and choice. And we are making significant
investments in our business to match new market oppor-
tunities and consumer needs, including the Western Union
®
Gold Cards — for both sender and receiver, our consumer
database and direct-to-bank transfers.
Our C2B initiatives are another strong growth
opportunity for Western Union. This business allows
consumers to send bill payments from a participating
Western Union agent location or initiate electronic pay-
ments to billers using a variety of service channels. Our
established relationships bring scale to our business and
are helping to increase system efficiency and build
diversification into our revenue stream. Our C2B business
enables us to grow our relationships with both companies
and customers who may not have experience with our
C2C service.
Currently, our C2B business is based primarily in the
United States. However, efforts are under way to expand
this business internationally. This began in late 2006 with
the acquisition of Servicio Electrónico de Pago S.A.
(SEPSA) and their Pago FácilSM branded services — a walk-
in bill payment company in Argentina.
I have no doubt that we will strive to continue to be
the market leader in the cross-border remittance market as
our range of services increases. We also remain dedicated
to our regulatory compliance initiatives. Offering services
in 200 countries and territories is extremely complex and
we take great pride in our compliance program.
MAKING THE HIGHLY COMPLEX LOOK
REMARKABLY SIMPLE
Our vast worldwide network is incredibly efficient, and will
continue to be as we explore even more service offerings.
Consumers can put money down on the counter in one
town and, in minutes, it is available to a customer virtually
anywhere in the world. We work with over 600 super-
agents around the world that are seasoned, established
business people in their countries — bringing an unmatched
local knowledge and expertise to our business. We
service over 15,000 corridors around the globe with deep
understanding of the culture of each and every one.
OUR RELEVANCE HAS NEVER BEEN MORE APPARENT
My vision for Western Union is to become a leading global
financial services provider. This will be achieved by providing
the services our consumers need and by taking advantage
of our strengths: Our hours. Our locations. Our capabilities
and speed. We will continue to build upon our heritage
and live our values as we adapt our business to the needs
of the marketplace. Looking ahead, I find Western Union
in a unique and desirable position — ready for change and
equipped with the resources to do so. We have been, and
will continue to be, an institution that is executing new
strategies around the world to help millions of people live
easier lives.
My management team and I believe Western Union
is a great investment because we provide a meaningful
service to millions of people around the world. We con-
tinue to meet our consumers’ needs and we are extremely
well positioned in a fast growing market to deliver on our
commitment to our shareholders.
My management team and I would like to thank the
consumers, agents, employees and shareholders who
make the hopes of millions of people a reality. The promise
that tomorrow holds for Western Union is incredibly
encouraging. Just think: in only the last five years we have
nearly tripled our number of agent locations. We’ve
increased market share and begun life as a public company.
Our cash flow has never been stronger. We are constantly
expanding and diversifying our global distribution. And
we’ve grown our agent relationships and introduced new
service offerings. The investments we’re making on a
daily basis are benefiting people throughout the world.
They are the foundation from which we will continue to
help our consumers realize their dreams.
CHRISTINA GOLD
President and CEO
The Western Union Company
A Letter from the CEO 13