Western Union 2012 Annual Report Download - page 18

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Competition
Western Union competes with a diverse set of service providers offering payment services and risk management solutions,
including financial institutions and other non-bank competitors. We believe the most significant competitive factors in this segment
relate to recurring relationships founded on customer service and expertise in payments and foreign exchange, customized solutions
for specific industries and clients, convenience and speed of payments network, availability of derivative products, variety of
inbound and outbound payment methods, brand recognition and price.
Other
Our remaining businesses are grouped in the “Other” category, which includes our money order, prepaid services, mobile
money transfer, and other businesses and services, in addition to costs for the investigation and closing of acquisitions.
Customers use our money orders for making purchases, paying bills, and as an alternative to checks that can be deposited
directly into bank accounts or cashed at check cashiers, some banks and some retailers. We derive investment income from interest
generated on our money order settlement assets, which are primarily held in United States tax exempt state and municipal debt
securities.
Our prepaid cards are sold primarily in the United States through retail locations and on the Internet and are Mastercard® or
Visa®-branded. This service allows consumers to load money or receive a direct deposit onto the card for use at a later date. The
card can be used to withdraw money from an ATM or used where debit cards are accepted. We have agreements with depository
institutions insured by the Federal Deposit Insurance Corporation that serve as the issuers of our cards in the United States. At
certain agent locations, we also provide consumers the ability to make cash payments for prepaid phone or other services, including
the ability to load principal onto prepaid cards, including our own. Our stored-value products and services are currently offered
in twelve countries worldwide, with cards being issued either by us or through other licensed institutions.
Our mobile money transfer service provides consumers in certain countries with the ability to transfer money to a mobile
wallet or bank account. Consumers in selected countries can also initiate transactions from their mobile phones and send money
from mobile wallets or bank accounts.
Intellectual Property
The Western Union logo, service mark, and trade dress (collectively, “Marks”) are registered and/or used worldwide and are
material to our Company. The WU® service mark is currently registered in the United States and the European Community with
applications pending in many other countries around the world. The international expansion of our agent network over the past
decade has taken the Western Union brand nearly everywhere consumers send and receive money. We offer money transfer services
under the Western Union, Orlandi ValutaSM and Vigo® brands. We also provide various payment and other services under brands
such as Western Union Payments, Quick Collect, Convenience PaySM, Quick Pay, Quick Cash, Speedpay, Equity Accelerator,
Pago Fácil (registered in Argentina), Western Union Business Solutions and MoneyWiseTM.
Our operating results over the past several years have allowed us to invest significantly each year to support our brands. In
2012, we invested approximately $235 million to market, advertise and promote our brands and services, including costs of
dedicated marketing personnel. Many of our agents have also contributed significant financial resources to assist with marketing
our services.
We own patents and patent applications covering various aspects of our processes and services. We have been, are and in the
future may be, subject to claims and suits alleging that our technology or business methods infringe patents owned by others, both
in and out of the United States. Unfavorable resolution of these claims could require us to change how we deliver services, result
in significant financial consequences, or both, which could adversely affect our business, financial condition and results of
operations.