Providing consumers with innovative services for more than 150 years, Western Union is an established leader in electronic and cash bill-payment solutions. We introduced our first consumer-to-consumer money transfer service in 1871 and began offering consumer-to-business bill payment services in 1989 with the introduction of the Western Union Quick Collect® service, providing consumers in the United States with convenient walk-in agent network locations where they can pay bills in cash.
In 2008, our comprehensive suite of services has grown to include Speedpay® – an electronic bill payment option that provides businesses with Internet, IVR, desktop, mobile payments, online banking and call center solutions, as well as e-bill presentment with payments and interactive outbound messaging integrated with payment processing.
THE CONSUMER-TO-BUSINESS SEGMENT
Western Union’s electronic and cash bill payment services provide consumers with fast, convenient ways to send one-time or recurring payments to a broad spectrum of industries. At Western Union we have relationships with more than 6,000 businesses and organizations that receive consumer payments, including utilities, auto finance companies, mortgage servicers, financial service providers and government agencies. These relationships form a core component of our consumer-to-business payment service and are one reason we were able to process 404 million consumer-to-business transactions in 2007.
PORTFOLIO OF SERVICES
Our consumer-to-business services give consumers choices in payment type and method, and include the following options:
- Electronic payments. Consumers and billers use our Speedpay® service in the United States and the United Kingdom to make consumer payments to a variety of billers using credit cards, ATM cards and debit cards, and via ACH withdrawal. Payments are initiated through multiple channels, including biller-hosted websites, westernunion.com, IVR units, Online Banking websites and call centers.
- Cash payments. Consumers use our Quick Collect® or Prepaid® services to send guaranteed funds to businesses and government agencies using cash (and in select locations, debit cards). Quick Collect is available at nearly 60,000 Western Union agent locations across the United States and Canada, while our Prepaid service can be accessed at more than 40,000 U.S. locations. Consumers can also use our Convenience Pay® service to send payments by cash or check from a smaller number of agent locations primarily to utilities and telecommunication providers.
DISTRIBUTION AND MARKETING CHANNELS
Our electronic payment services are available primarily through an IVR, over the Internet and via Call Center using a desktop application while speaking with a biller’s customer service representative. Through our Quick Pay® service, it is possible to receive payments sent from outside the United States or Canada from over 320,000 agent locations in more than 200 countries and territories around the world. We work in partnership with our billers to market our services to consumers in a number of ways, including direct mail, Email, Internet and point-of-sale advertising.
In late 2007, Western Union launched its Online Banking initiative, helping to change the way consumers pay their bills. The channel accelerates the speed with which billers receive payment from two to four days to a next-day or same-day delivery, and enables Western Union Payment Services to process bill payments initiated by consumers from their banks’ online banking sites.
Western Union plans to work with the nation’s largest banks to provide your customers with a new class of online banking payment that allows them to make same- and next-day payments that are posted and funded to you faster and are of a higher quality than other online banking payments currently available.
EMAIL BILL PRESENTMENT AND PAYMENT
While the benefits of electronic bill presentment and payment are compelling for both billers and consumers, low consumer adoption rates have prevented billers from fully realizing the cost savings and improved customer service levels these services promote. Western Union® Payment Services aims to change this through its integration with Striata® Email bill presentment and payment (EBPP) solutions.
With this integrated, encrypted Email bill presentment and one-click payment service, consumers no longer need to register to receive their bill electronically, visit a separate website to download the bill and send a payment, or remember multiple user names and passwords. By removing these extra steps from the process, these services become dramatically easier to use for consumers.
The critical differentiator of the Western Union/Striata service is that the entire e-bill is delivered directly into the consumer’s in-box as an encrypted off-line attachment, enabling payment to be sent through the e-bill itself using the Western Union® Speedpay service. While complementary to existing online presentment solutions, this “push” Email billing offering can be more successful at driving adoption.