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Western Union To Provide Cellphone Money Transfer Services To Africa-based MTN Group

|Includes:The Western Union Company (WU)

Payment services provider Western Union (NYSE:WU) said today that it will provide cellphone money transfer services for MTN Group (JSE:MTN), a telecommunications firm in Africa and the Middle East.  


The service will add on MTN’s domestic cellphone payment service, MobileMoney, to let MTN subscribers transfer money internationally through Western Union.  


The service will be rolled out in the 21 countries where MTN operates, beginning with Uganda, where MTN has over 1 million registered users for its MobileMoney product. 


According to the World Bank, Uganda receives nearly US$500 million in remittances every year, making up 3% of the country's GDP.


Western Union offers its cellphone money transfer service through various partnerships in the Philippines, Kenya, and Malaysia. 


The company also recently announced agreements to offer the service in Canada and to the State Bank of India in India.  The service is also offered to banks in Tunisia, Libya and South Africa.


Western Union’s shares have edged up on the news.



Disclosure: No positions
Stocks: WU