Western Union 2015 Annual Report Download - page 110

8
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 other identifying information regarding 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 consumers who participate in
our loyalty programs. The sending agent enters the transaction information into our money transfer system and the funds are made
available for payment, usually within minutes. In some jurisdictions, the agent collects the principal and fees after the presentation
of a written disclosure that generally identifies the exchange rate and all fees and charges associated with the transaction and the
consumer has agreed to the transaction, as described in the disclosure. The recipient generally 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 an 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.
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."
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 in more than 200 countries and territories with a number of options for sending funds that
provide consumers convenience and choice, through both our walk-in and online money transfer channels.
• Walk-in money transfer. The substantial majority of our remittances constitute walk-in transactions in which payment is
collected by one of our agents and is available for pick-up at another agent location, usually within minutes. Additionally,
in a few select markets, we offer consumers a lower-priced next day delivery service option for money transfers that do
not need to be received within minutes.
• Online money transfer. In certain countries, consumers can initiate a money transfer from a Western Union branded
website, including through their mobile devices. As of December 31, 2015, we were providing online money transfer
services through Western Union branded websites in 34 countries. Additionally, in certain countries, consumers can
initiate a Western Union money transfer through their bank’s online banking services.
Our consumers can fund a transaction in a variety of ways, in addition to cash. For example, at certain of our agent locations,
consumers can fund a transaction using a debit card, and, where available, consumers can fund a money transfer from an account
through an automated teller machine ("ATM"). In our online money transfer channel, consumers can generally fund transactions
using a credit card, debit card, electronic funds transfer processed through the automated clearing house ("ACH") payment system,
or other bank account-based payment.
We also provide several options for the receipt of funds. At our retail agent locations, consumers generally receive payments
in cash. However, in certain countries, our retail agents may also issue a money order or check or provide payout through an ATM.
Funds can also be directed to a bank account in a number of countries, by either the sender or receiver, and in more limited
circumstances, can be directed to either a mobile wallet or a stored-value card.
201 FORM 10-K
5