Western Union 2009 Annual Report Download - page 23

program, which results in a more rapid reduction of their mortgage balance, as well as interest savings. We
also offer a non-recurring mortgage payment service under the brand Just in Time EFT».
Distribution and Marketing Channels
Our electronic consumer payment services are available primarily through the telephone and the internet,
while our cash-based consumer services are available through our agent networks and select Company owned
locations. Our business payment services are offered through owned locations, telephone, via the internet and
partner channels.
Businesses market our services to consumers in a number of ways, and we market our services directly to
consumers and businesses using a variety of means, including advertising materials, promotional activities, call
campaigns and attendance at trade shows and seminars. Our internet services are marketed to consumers and
businesses on our websites as well as through co-branding arrangements with our website partners who offer
our payment solutions. Consumers can also participate in the Western Union Gold Card program when using
our Quick Collect service.
We have relationships with more than 6,300 businesses to which our consumers can make payments,
approximately 2,200 of which primarily relate to our bill payment business in Argentina, Pago Fácil. These
relationships are a core component of our global business payments services. In 2009, our top 20 businesses to
which our consumers can make payments represented approximately 40% of our global business payments
revenue. On average, we have provided our payment services to our top 20 businesses to which our consumers
can make payments for more than 14 years. No individual customer accounted for greater than 10% of this
segment’s revenue during all periods presented.
Our growth strategy includes a focus on expanding and globalizing our global business payments segment
and increasing our number of payment options.
Industry Trends
The global business payments industry has evolved with technological innovations that have created new
methods of processing payments from individuals or businesses to other businesses. The cross-border
payments industry is expected to expand considerably in the future due to the expanding global focus of many
businesses. We believe that the United States is in the midst of a trend away from cash and paper checks
toward electronic payment methods accessible through multiple technologies. Furthermore, due to the weak
economic situation in the United States, we believe many United States consumers who would use our services
are having difficulty paying their bills and are unable to obtain credit, resulting in our handling fewer bill
payments.
The global business payments industry outside the United States is at varying stages of development. In
some countries, walk-in cash payments or payments through a third-party network are widely used, while in
other countries electronic payment options, particularly through direct debit, are widely accepted.
Competition
Western Union competes with a diverse set of service providers offering both cash and electronic-based
payment solutions and business-to-business payment services. Competition in electronic payments and
business-to-business payment services include financial institutions (which may offer consumer bill payment
or business payment services in their own name or may “host” payment services operated under the names of
their clients). Competition for electronic payments also includes businesses offering their own or third-party
services to their own customers and third-party providers of all sizes offering services directly to consumers.
In many cases, competitors specialize in a small number of industries. Competitors for cash payments include
businesses that allow consumers to pay a bill at one of their locations, or at the location of a partner business,
as well as mail and courier services. Competitive pressures are impacting this business.
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