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Western Union forms partnership in Canada to do money transfer via mobile phones

Saturday, 25 September 2010 14:15

Source: Jamaica Observer

The Western Union Company and EnStream LP, creators of the Zoompass Mobile Wallet, has partnered to provide money tranfers using mobile phones in Canada, the third-largest origin of remittances flowing into Jamaica.

"This agreement with EnStream is an important component of our strategy to introduce new electronic channels to provide choice and convenience to consumers worldwide," said a joint statement issued by the companies.

The strategic alliance that will allow Zoompass users to send cross-border and domestic money transfers directly from their mobile phones was announced on Monday.

With the launch of the service later this year, Zoompass users in Canada will be able to send funds directly from their mobile wallets. Recipients will be able to pick up their funds in cash at more than 380,000 Western Union Agent locations in 200 countries and territories.

Zoompass users also will be able to send mobile-to-mobile transactions to subscribers of mobile phone companies with whom Western Union has launched the Mobile Money Transfer service. This includes Globe Telecom and Smart Communications in the Philippines.

Mobile users can currently send and receive money within Canada using the Zoompass wallet application for the Apple iPhone, BlackBerry, Android, and other devices.

"Western Union is an incredible partner to Zoompass, and together we are changing the way money moves around the globe," said Robin Dua, President of EnStream LP. "International remittances are a logical extension of the Zoompass functionality, and they build on our vision to give every Canadian mobile subscriber the ability to send money to anyone, anywhere in the world."

According to the Canadian Wireless Telecommunications Association, there are approximately 23 million mobile subscribers in Canada, and roughly 75 per cent of Canadian households have access to a mobile phone. In addition, according to a survey conducted in Toronto by Western Union in April 2010, 48 per cent of international money-transfer senders said they were likely to sign up for mobile transaction services, and 17 per cent would definitely use mobile money-transfer services. Many global migrants living in Canada send money home to countries like the Philippines, Jamaica, the United States, and India.

During the first seven months of 2010, remittances from Canada into Jamaica totalled US$110 million or 9.8 per cent of total remittance inflows, compared to US$76 million for the corresponding period last year, when Canadian remittances made up 7.5 per cent of total remittances into the island.

"Canada is an important send market for Western Union, and we are excited to add them to our list of countries that offer mobile money transfers," said Khalid Fellahi, Senior Vice- President and Head of Mobile Transaction Services, Western Union. "This agreement with EnStream is an important component of our strategy to introduce new electronic channels to provide choice and convenience to consumers worldwide."

Western Union is a leader in global payment services, having completed 196 million consumer-to-consumer transactions worldwide, moving US$71 billion of principal between consumers, and 415 million business payments in 2009.

EnStream LP is a Toronto-based mobile commerce company working to bring transformational wireless payment solutions to market together with its carrier partners.