Western Union 2011 Annual Report Download - page 13

ITEM 1. BUSINESS
Overview
The Western Union Company (the “Company,” “Western Union,” “we,” “our” or “us”) is a leader in global
money movement and payment services, providing people and businesses with fast, reliable and convenient ways
to send money and make payments around the world. The Company was incorporated in Delaware as a wholly-
owned subsidiary of First Data Corporation (“First Data”) on February 17, 2006, and on September 29, 2006,
First Data distributed all of its money transfer and consumer payments businesses and its interest in a Western
Union money transfer agent, as well as its related assets, including real estate, through a tax-free distribution to
First Data shareholders (“Spin-off”) through this previously owned subsidiary.
The Western Union®brand is globally recognized and represents speed, reliability, trust and convenience. As
people move and travel around the world, they are able to use the services of a well recognized brand to transfer
funds. Our consumer-to-consumer money transfer service enables people to send money around the world in
minutes. As of December 31, 2011, our services were available through a global network of more than 485,000
agent locations in more than 200 countries and territories, with approximately 90% of those locations outside of
the United States. Each location in our agent network is capable of providing one or more of our services, with
the majority offering a Western Union branded service. As of December 31, 2011, approximately 70% of our
locations had experienced money transfer activity in the previous 12 months.
We also provide consumers and businesses with flexible and convenient options for making one-time or
recurring bill payments, including business-to-business payment transactions, which are primarily cross-border,
cross-currency transactions, in our global business payments segment. In November 2011, we acquired the
business-to-business payment business of Travelex Holdings Limited, known as Travelex Global Business
Payments (“TGBP”). Although the majority of the revenue in our global business payments segment was
generated in the United States, international expansion and other key strategic initiatives, including TGBP, have
resulted in international revenue continuing to increase in this segment.
We believe that brand strength, size and reach of our global network, and convenience and reliability for our
customers have been important to the growth of our business. As we continue to meet the needs of our customers
for fast, reliable and convenient global money movement and payment services, we are also working to enhance
our services and provide our consumer and business clients with access to an expanding portfolio of payment and
other financial services.
The majority of our revenue comes from fees that consumers pay when they send money or make payments. In
certain money transfer and payment services transactions involving different send and receive currencies, we
generate revenue based on the difference between the exchange rate set by us to the consumer or business and the
rate at which we or our agents are able to acquire the currency.
Our Segments
We manage our business based on the customers we serve and the type of services we offer. Each segment
addresses a different combination of customer needs, distribution networks and services. Our segments are
consumer-to-consumer and global business payments. Our other businesses not included in these segments
primarily consist of money order and prepaid services available through a network of third-party agents.
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