Globe Telecom and Western Union Join Forces to Deliver Money Transfers through Mobile Phones in the Philippines
The Western Union Company, Globe Telecom and its wholly owned subsidiary, G-Xchange, Inc., announced today that they will join forces to introduce a cross-border mobile money transfer service supporting low-principal, high-frequency remittances.
Globe Telecom, a leading telecommunications provider in the Philippines, offers its GCASH service with an “electronic wallet” feature that allows users to send and receive cash and make payments, including bill payments, donations and online purchases via texting. Globe Telecom had more than 19 million subscribers as of the end of September 2007 and close to half a million active GCASH users.
Once the Western Union(R) mobile money transfer pilot has launched, the service will connect operators to Western Union’s existing global money transfer system. Once connected to the Western Union service, operators will be able to use their own “mobile wallet” software to enable person-to-person mobile money transfers over Western Union’s cross-border remittance network. The Mobile Money Transfer service will enable consumers to transfer money to or from mobile wallets and will offer a global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions.
Mobile networks now cover more than 80 percent of the world’s population, and 3 billion people have a mobile phone,(2) creating a unique opportunity to extend the benefits of financial services to many of the world’s families for the first time.
The agreement with Globe is part of the pilot program of Western Union and the GSM Association, a global trade association representing over 700 GSM mobile phone operators, to facilitate the development of cross-border mobile money transfer services. The Western Union Company, Globe Telecom and its wholly owned subsidiary, G-Xchange, Inc., announced today that they will join forces to introduce a cross-border mobile money transfer service supporting low-principal, high-frequency remittances.
Globe Telecom, a leading telecommunications provider in the Philippines, offers its GCASH service with an "electronic wallet" feature that allows users to send and receive cash and make payments, including bill payments, donations and online purchases via texting. Globe Telecom had more than 19 million subscribers as of the end of September 2007 and close to half a million active GCASH users.
"We envision that this relationship with Western Union will increase the accessibility and lower the cost of micro-remittances, which will greatly benefit Filipino overseas workers and their families here in the Philippines," said Mr. Ferdinand M. Dela Cruz, Consumer Wireless Business Group Head of Globe Telecom. "This agreement will further expand our cross-border mobile commerce hub that allows multi-currency money transfers to mobile operators around the world, linking our groundbreaking GCASH service to a global network of send and receive locations through Western Union."
The number of immigrants globally is about 200 million – approximately 3 percent of the world's population.(1) According to recent World Bank data, the Philippines is the fourth-largest receiver of remittances in the world and received an estimated $17 billion USD in 2007.
Western Union, together with its affiliates Orlandi Valuta and Vigo, maintains the industry's largest global money transfer Agent network with more than 320,000 locations in over 200 countries and territories.
"We see a tremendous opportunity to deliver Western Union remittances in new and compelling electronic formats," said Matt Dill, General Manager, Western Union Mobile. "The GCASH service introduced by Globe Telecom is widely recognized as one of the mobile industry's most appealing service offerings for banked and unbanked consumers alike. In combining Globe's strengths with Western Union's global reach and compliance capabilities, we can introduce financial services to a new segment of consumers."
Once the Western Union(R) mobile money transfer pilot has launched, the service will connect operators to Western Union's existing global money transfer system. Once connected to the Western Union service, operators will be able to use their own "mobile wallet" software to enable person-to-person mobile money transfers over Western Union's cross-border remittance network. The Mobile Money Transfer service will enable consumers to transfer money to or from mobile wallets and will offer a global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions.
Mobile networks now cover more than 80 percent of the world's population, and 3 billion people have a mobile phone,(2) creating a unique opportunity to extend the benefits of financial services to many of the world's families for the first time.
The agreement with Globe is part of the pilot program of Western Union and the GSM Association, a global trade association representing over 700 GSM mobile phone operators, to facilitate the development of cross-border mobile money transfer services.
About The Western Union Company
The Western Union Company (NYSE: WU) is a leader in global money-transfer services. Together with its affiliates, Orlandi Valuta and Vigo, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a network of more than 320,000 Agent locations in over 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com.
About Globe Telecom
Globe Telecom is a leading full-service telecommunications company in the Philippines offering digital wireless communication, wireline voice, data transmission, domestic and international long-distance communication services, and mobile commerce services. The company has been listed in the Philippine Stock Exchange (GLO:PS) since 1975. As of end-September 2007, Globe Telecom had a total of 19 million wireless, 394,000 wireline, and 109,000 broadband subscribers and close to half a million active m-commerce users. For more information, visit www.globe.com.ph.
For more information about the GSMA's MMT programme, please see www.gsmworld.com/mmt.
(1) Source: World Bank
(2) Source: GSMA
