Q: What is Mobile Money Transfer?
Today, consumers have a variety of ways to send and receive funds or money transfers.
Although using cash to send a money transfer is the most popular method for most people, more and more people want additional options: to send and/or receive funds on the internet, over the phone, and now, on their mobile phones.
Mobile money transfer is simply another way to send money. It is a transfer of money to a receiver in which the funds are deposited into a mobile or “virtual” wallet.
Q: What is a Mobile Wallet (M-Wallet)?
A mobile wallet is an electronic account that is linked to a person’s mobile phone in which money can be electronically deposited and used the same as cash.
Internationally, M–Wallets are used to pay for goods at stores, pay for public transportation, make donations and pay bills.
Q: How can you send and receive funds via a mobile phone?
Western Union’s service will offer several “variations” — and is unique in offering consumers options in how they send or receive funds over the mobile. Consumers can send funds:
- Cash-to-mobile: A consumer initiates a money transfer by submitting cash at a Western Union Agent location. The funds are sent to a receiver whose mobile operator offers mobile money transfer in partnership with Western Union. Funds are deposited into the receiver’s mobile “wallet”, or account tied to the mobile phone.
- Mobile-to-cash: A consumer whose mobile operator offers mobile money transfer in partnership with Western Union uses his/her phone to send a cross-border money transfer. The sender notifies the receiver via SMS or phone that the funds have been sent and provides the MTCN. The receiver then picks up the funds at a Western Union Agent location.
- Mobile-to-mobile: A consumer whose mobile operator offers mobile money transfer in partnership with Western Union uses his phone to send a cross–border money transfer to a receiver whose mobile operator also offers mobile money transfer in partnership with Western Union. The funds go directly into the receiver’s mobile “wallet”, or account tied to the mobile phone.
Q: What sort of impact do you expect to make on the marketplace as a whole
- Lower cost for remittances
- Stimulate convergence of the financial and mobile industries
- Help to shape optimal regulatory frameworks for all participants
- Stimulate innovation in mobile financial solutions
- Bring financial services to many in developing countries for the first time
Q: Don’t mobile international remittances systems already exist?
There are a small number of such systems operating today. These systems were typically set up via bilateral agreements (between individual parties), which are time–consuming and costly to set up.
Q: What is in it for the mobile operators?
- Broader range of services
- Customer acquisition and retention
- Easy integration into existing m–commerce solutions
- Creation of interoperability speeds the ability of operators to access multiple other markets
- Strengthens relationship with prepay customers
- First step to other electronic banking/financial services
Q: How does Mobile Money Transfer with Western Union work?
- Sender completes the “Mobile Money Transfer” information on the Send Form at a select Western Union Agent location.
- Service fees for Mobile Money Transfer vary by corridor.
- The Receiver will receive a SMS message from the Mobile Network Operator that money is available in their M–Wallet or from Western Union that money is available for pickup at a Western Union Agent location.
- The Sender will receive an SMS message when Western Union has paid the money to the Mobile Network Operator.
- Where mobile-to-mobile is available, a sender can initiate a Mobile Money Transfer on his/her mobile phone.
Q: What information is required on the Mobile Money Transfer form?
- Country code and mobile phone number for the receiver
- Amount to send
- First and last name of receiver
- Receiver’s province or country
- First and last name of sender
- Country code and mobile phone number for sender
- Address for sender
Q: Who can send a Mobile Money Transfer?
Anyone can send a Mobile MT from a participating Western Union Agent location by providing the required information. Mobile MT transaction limits vary and information is available at the time of submittal. In the early stages of rollout, people will only be able to send Mobile MTs from select participating “send” locations to select “receive” locations.
Q: Can money be sent to any mobile phone?
Mobile Money Transfers can only be sent to mobile phones that belong to participating Mobile Network Operators.
Q: Is Mobile Money Transfer available at all Western Union Agent locations?
During the initial roll-out, Mobile Money Transfers can only be sent from select Western Union Agent locations.
In the future, additional Western Union Agent locations across the globe will be able to process Mobile MT transactions.
Q: How quickly will transferred money be available to the recipient?
Notification will travel as quickly as a text message; availability of funds will be near instantaneous — there may be some variability in different regions depending on the account type — and wireless service provider.
Q: Is intra-money transfer available or only cross–border?
Many operators have emerging intra–money transfer businesses. Western Union can provide both intra–country and cross–border remittances; our primary differentiator and development focus is cross–border remittance and the ability to provide mobile–to–mobile, cash–to–mobile, and mobile–to–cash services.
Q: How will you ensure that mobile transactions are secure?
To send a mobile remittance, proper identification will be required to send a money transfer to a mobile wallet. Transactions comply with both the regulations of the send country and those for cross–border remittances. M–wallet registered accounts are secured by a secret PIN. If your phone is lost or stolen contact your mobile operator and they will freeze/suspend your m–Wallet account.
Q: At what point are exchange rates calculated?
Exchange rates applied to the mobile money transfer transaction will be calculated, applied, and displayed at the time the funds are sent (fixed on send) unless otherwise prohibited by local regulations.
Q: How does Western Union’s mobile money transfer program differ from your competitors?
Consumers have a choice as to how the funds are sent and received. Although other Mobile Money Transfer services exist, most require both the sender and the receiver to have a credit card or bank account. In many developing countries, credit cards are not widely accepted, and bank accounts are not widely available or desired.
A consumer who lacks the capability to send funds via a mobile phone can visit a Western Union Agent location worldwide to send funds in cash to a subscriber to a mobile phone provider who has an agreement with Western Union. Likewise, a subscriber to a mobile phone provider who has an agreement with Western Union can send funds to someone without the capability to receive funds via Western Union mobile funds and receive the funds in cash at an Agent location anywhere in the world.
In addition, Western Union is best in class in areas that are critical to succeeding in the mobile market. We have extensive compliance capabilities and systems, more than 130 years of experience in handling cross–border transactions, an expansive physical agent footprint worldwide — over 400,000 locations in more than 200 countries worldwide including affiliates Orlandi Valuta, Vigo and Pago Facil — for putting cash in and taking cash out, and the trust that consumers have in the Western Union brand to get the money there safely.
Q: What is the status of Western Union‘s mobile money transfer pilots?
Currently, consumers in the U.S., the U.K. the UAE, Hong Kong, Singapore and Canada who want to send a mobile money transfer can visit participating Western Union Agent locations and send cash to subscribers of both Globe Telecom / GCASH and Smart Communications/ SMART MONEY in the Philippines. The beneficiary will receive the remittance in the equivalent peso amount on his/her Globe or Smart mobile phone.
In addition, consumers in the UK can visit participating Western Union Agent locations in the UK and send funds directly to the 7.5 million M–PESA accountholders in Kenya.