Western Union 2010 Annual Report Download - page 12

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exchange rate set by us to the consumer or business and the rate at which we are able to acquire currency. In addition,
we generate revenue from upfront enrollment fees received for our Equity Accelerator»service, and we earn
investment income on funds received from services sold in advance of settlement with payment recipients.
While we continue to pursue further international expansion of our offerings in this segment, the majority of the
segment’s revenue was generated in the United States during all periods presented. However, international expansion
and other key strategic initiatives have resulted in international revenue continuing to increase in this segment.
Services
Our global business payments services are available through a variety of products which give customers choices
as to the payment channel and method of payment, and include the following:
Western Union Business Solutions. Western Union Business Solutions (“Business Solutions”) offers
international cross-border, cross-currency business-to-business payment solutions. These payment transactions
are conducted through various channels including the telephone and internet. Business Solutions operates its own
website to offer services and also serves as the ultimate service provider for other partner websites. Payments are
made predominately through wire transfers and ACH, but in some situations, checks are remitted. The majority of
Business Solutions’ business relates to exchanges of currency at the spot rate which enables customers to make
cross-currency payments. In addition, we write foreign currency forward and option contracts for customers to
facilitate future payments.
Western Union Payments. The Western Union Payments service, formerly Quick Collect», allows consumers to
send funds to businesses and government agencies across the United States and Canada, using cash and, in certain
locations, a debit card. This service is offered primarily at Western Union agent locations, but may be provided via
our westernunion.com website in limited situations. This service is also offered in select international locations
under the service mark Quick Pay
SM
. We also offer Quick Cash», a cash disbursement service used by businesses and
government agencies to send money to employees or individuals with whom they have accounts or other business
relationships. Similar to our Western Union Payments service, consumers use our Western Union Convenience Pay»
(“Convenience Pay”) service to send payments by cash or check from a smaller number of Convenience Pay agent
locations primarily to utilities and telecommunication providers. We are in the process of consolidating all of these
services to be marketed as Western Union Payments.
Pago Fácil». In South America, we offer walk-in, cash bill payment services which allow consumers to make
payments for services such as phone, utilities and other recurring bills. In Argentina, we provide this service under
the Pago Fácil brand. We offer this service under the Western Union brand in Peru and Panama.
Speedpay». Our Speedpay service is offered principally in the United States and allows consumers to make
payments to a variety of businesses using credit cards, debit cards, ACH and in limited situations, checks. Payments
are initiated over the telephone or the internet. We also partner with some businesses to allow their customers to
access Speedpay from their websites.
Equity Accelerator. Our Equity Accelerator service enables consumers to make mortgage payments by ACH. It
is marketed as a convenient way for homeowners to schedule additional recurring principal payments on their
mortgages. Consumers who enroll in this service make mortgage payments based on an accelerated 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
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