Western Union 2012 Annual Report Download - page 13

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We generally pay our agents a commission based on a percentage of revenue. A commission is usually paid to both the agent
that initiated the transaction, the “send agent,” and the agent that paid the transaction, the “receive agent.” For most agents, the
costs of providing the physical infrastructure and staff are typically covered by the agent's primary business (e.g., postal services,
banking, check cashing, travel and retail businesses), making the economics of being a Western Union agent attractive. Western
Union's global reach and large consumer base allow us to attract agents we believe to be of high quality.
To complement the convenience offered by our network's global physical locations, in certain countries we have also made
our services available through other channels, as described below under “Services.”
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 greater than 7% of this segment's revenue during all periods presented.
Services
We offer money transfer services worldwide. In 2012, the substantial majority of our Consumer-to-Consumer transactions
were cash money transfers involving our walk-in agent locations around the world. Although demand for in-person, cash money
transfers has historically been the strongest, we offer a number of options for sending and receiving funds that provide consumers
convenience and choice. The different ways consumers can send or receive money include the following:
Walk-in and telephone money transfer service. The substantial majority of our remittances constitute transactions in which
cash is collected by the agent and payment (usually cash) is available for pick-up at another agent location, usually within minutes.
In certain countries, we also offer convenience to our consumers to initiate a transaction through the phone using a debit or credit
card or through our account based money transfer service, as described below. We also provide a “Cash to Card” service that
provides consumers an option to direct funds to a Western Union branded stored-value card in the United States and in certain
other 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 for certain domestic service within the United States, and in select United States outbound and international
corridors. 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.
Online money transfer service. Our websites allow consumers to send funds online, generally using a credit or debit card, for
pay-out at most Western Union branded agent locations around the world. As of December 31, 2012, we were providing online
money transfer service in more than 20 countries, allowing consumers in these countries to send money throughout the world.
Account based money transfer service. This service allows consumers to access Western Union services electronically, directly
from their bank's Internet or automated teller machine (“ATM”) banking service. Consumers can use their bank account to initiate
a Western Union money transfer electronically, without having to visit a physical Western Union agent location. Globally, we have
relationships with nearly 115 banks that have agreed to offer one or more of our account based money transfer services, primarily
through their online banking portals.
Direct to bank. In the United States and in certain other countries, we provide a “Direct to Bank” service, enabling a consumer
to send a transaction from an agent location directly to a bank account in certain countries. Additionally, our websites allow
consumers to send funds online, generally using a credit or debit card, for pay-out directly to a bank account.
Mobile money transfer service. For further discussion regarding our mobile money transfer service, see the “Other” category
in this section.
Money transfer services through electronic channels, which include online, account based, and mobile money transfer,
combined were 4% of consolidated revenue for the year ended December 31, 2012.