Western Union 2012 Annual Report Download - page 12

7
The table below presents the components of our consolidated revenue:
Year Ended December 31,
2012 2011 2010
Consumer-to-Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81% 84% 84%
Consumer-to-Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11% 11% 12%
Business Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% 3% 2%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% 2% 2%
100% 100% 100%
No individual country outside the United States accounted for more than approximately 6% of our consolidated revenue for
each of the years ended December 31, 2012, 2011 and 2010.
For additional details regarding our Consumer-to-Consumer, Consumer-to-Business and Business Solutions segments,
including financial information regarding our international and United States revenues and long-lived assets, see Part II, Item 7,
Management's Discussion and Analysis of Financial Condition and Results of Operations, and Part II, Item 8, Financial Statements
and Supplementary Data in this Annual Report on Form 10-K.
See Risk Factors for a discussion of certain risks relating to our foreign operations.
Consumer-to-Consumer Segment
Individual money transfers from one consumer to another are the core of our business, representing 81% of our total
consolidated revenues for 2012. We view our money transfer service as one interconnected global network where a money transfer
can be sent from one location to another, around the world, including related transactions that can be initiated through our websites
and account based money transfers. The segment includes six regions whose functions are limited to generating, managing and
maintaining agent relationships and localized marketing activities. These regions interact on transactions with consumers and
share common processes, systems and licenses, thereby constituting one global Consumer-to-Consumer money transfer business
and one operating segment.
Although most remittances are sent from one of our approximately 510,000 agent locations worldwide, in some countries we
offer the ability to send money over the Internet or phone using a credit or debit card, or through a withdrawal directly from a
consumer's bank account. All agent locations accept cash to initiate a transaction, and some also accept debit cards. We offer
consumers several options to receive a money transfer. While the vast majority of transfers are paid in cash at agent locations, in
some places we offer payout directly to the receiver's bank account, to a stored-value card, or through the issuance of a money
order.
Operations
Our revenue in this segment is derived primarily from transaction fees charged to consumers to transfer money. In money
transfers involving different send and receive currencies, we also generate revenue based on the difference between the exchange
rate set by us to the consumer and the rate at which we or our agents are able to acquire the currency.
In a typical money transfer transaction, a consumer goes to one of our agent locations, completes a form specifying, among
other things, the name and address of the recipient, and delivers it, along with the principal amount of the money transfer and the
fee, to the agent. Certain of these processes are streamlined for our customers who use our loyalty card. This sending agent enters
the transaction information into our money transfer system and the funds are made available for payment, usually within minutes.
The recipient enters an agent location in the designated receiving area or country, presents identification, where applicable, and
is paid the transferred amount. Recipients generally do not pay a fee. However, in limited circumstances, a tax may be imposed
by the local government on the receipt of the money transfer, or a fee may be charged by the receiver's institution related to the
use of the account. We determine the fee paid by the sender, which generally is based on the principal amount of the transaction
and the send and receive locations.