Western Union 2007 Annual Report Download - page 19

17
Our Business
Over 85% of our consumer-to-consumer transactions involve
at least one non-United States location. No individual country
outside the United States accounted for more than 10% of the
segment’s revenue for the years ended December 31, 2007, 2006
and 2005. Certain of our agents facilitate a large number of
transactions; however, no individual agent accounted for greater
than 10% of the segment’s revenue during these periods.
Seasonality
Consumer-to-consumer segment revenue typically increases
sequentially from the fi rst quarter to the fourth quarter each year
and declines from the fourth quarter to the fi rst quarter of the
following year. This seasonal fl uctuation is related to the holiday
season in various countries during the fourth quarter.
Services
We offer money transfer services worldwide. In 2007, over 90%
of our consumer-to-consumer transactions were traditional cash
money transfers involving our walk-in agent locations around the
world. In order to enhance the convenience of our services, we
offer a number of options for sending and receiving funds; how-
ever, historically, demand for in-person, cash money transfers
has been the strongest. The different ways consumers can send
or receive money include the following:
WALK-IN MONEY TRANSFER SERVICE. The majority of our remit-
tances constitute transactions in which cash is collected by the
agent and payment (usually cash) is available for pick-up at
another agent location in the designated receive country, usually
within minutes.
We continue to develop new services that enhance consumer
convenience and choice and are customized to meet the needs
of consumers in the regions where these services are offered. In
the United States, consumers can use a debit card to send transac-
tions from many agent locations. In some United States outbound
corridors and in select international corridors, we provide a “Direct
to Bank” service, enabling a consumer to send a transaction from
an agent location directly to a bank account in another country.
In certain countries, we offer payout options through a debit or
stored-value card, or through a money order. In certain countries,
our agents offer a bank deposit service, in which the paying agent
provides the receiver the option to direct funds to a bank account
or to a stored-value card. Also, under our Vigo brand, we offer
Direct to Bank service in certain receive countries.
Our “Next Day” delivery option is a money transfer that is
available for payment the morning after the money transfer is
sent. This option is available in certain markets for domestic
service within the United States, and in select United States
outbound and international corridors, including Mexico. The
Next Day Delivery service gives our consumers a lower-priced
option for money transfers that do not need to be received within
minutes, while still offering the convenience, reliability and
ease-of-use that our consumers expect.
Our “Money Transfer by Phone” service is available in select
agent locations in the United States. In a Money Transfer by Phone
transaction, the consumer is able to use a telephone in the agent
location to speak to a Company representative in one of several
languages. Typically the sender provides the information neces-
sary to complete the transaction to the Company operator on
the phone and is given a transaction number, which the sender
takes to the agent’s in-store representative to send the funds.
ONLINE MONEY TRANSFER SERVICE. Our internet website, west-
ernunion.com, allows consumers to send funds on-line, using a
credit or debit card, for pay-out at most Western Union-branded
agent locations around the world. Transaction capability at west-
ernunion.com was launched in the United States in 2000. As of
December 31, 2007, we are now providing service in 11 countries
outside the United States.
TELEPHONE MONEY TRANSFER SERVICE. Our Telephone Money
Transfer service allows Western Union consumers to send funds
by telephone without visiting an agent location. Consumers call
a toll-free number in the United States, Canada, Ireland or the
United Kingdom and use a debit card or credit card to initiate a
transaction. The money transfer is then available for pay-out at
an agent location.
CASH TO CARD. Our service that provides consumers an option
to direct funds to a stored-value card in certain locations.
HOME DELIVERY. Our home delivery service, available in certain
locations, allows funds to be delivered to the recipient rather
than picked up at an agent location.
Distribution and Marketing Channels
We offer our consumer-to-consumer service through our global
network of third-party agents and the other initiation and payment
methods discussed above. Western Union provides central
operating functions such as transaction processing, marketing
support and customer relationship management to our agents.
Some of our Western Union agents outside the United States
manage subagents, which we refer to as superagents. We have
approximately 700 superagents located throughout the world.
Although our subagents are under contract with these superagents
(and not with Western Union directly), the subagent locations
have access to the same technology and services that our other
agent locations do.
Our international agents are able to customize services as
appropriate for their geographic markets. In some markets,
individual agents are independently offering specifi c services
such as stored-value payout options and Direct to Bank service.
Our marketing relies on feedback from our agents and consumers,
and in many of our markets, our agents invest in their own market-
ing activities.
In February 2005, Western Union International Bank began
operations. We chartered the bank in order to adapt to the chal-
lenges presented by the growing trend among the member
states of the European Union to regulate the money transfer
business, and to give us a regulatory platform for new products
and services. Western Union International Bank holds a full credit
institution license, allowing it to offer a range of fi nancial services
throughout the 27 member states of the European Union and
the three additional states of the European Economic Area.
Today, the bank offers retail service in approximately 35 locations
in three countries.