Western Union 2013 Annual Report Download - page 123

2013 FORM 10-K
13
Competition
Western Union competes with a diverse set of service providers offering payment services and foreign exchange 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 primarily includes our money order, prepaid and other
businesses and services, in addition to costs for the review and closing of acquisitions.
Customers use our money orders for making purchases, paying bills, and as an alternative to checks. 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 business is now primarily composed of providing reload/top up services for various types of prepaid services
including mobile phone and prepaid accounts, including prepaid cards, and partnering with select program managers around the
world to launch prepaid accounts that meet varying customer needs. Our prepaid business represented less than 1% of total
consolidated revenues for all periods presented.
Intellectual Property
The Western Union logos, trademarks, service marks and trade dress (collectively, "Marks") are registered and/or used
worldwide and are material to our Company. The WU® service mark and logos are also registered and used in many countries
around the world. The international expansion of our agent network over the past decade has taken the Western Union brand to
more than 200 countries and territories. We offer money transfer services under the Western Union, Orlandi ValutaSM and Vigo®
brands. We also provide various payment and other services such as Western Union Payments, Quick Collect, Convenience Pay,
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
2013, we invested approximately $220 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.