Friday, February 01, 2008 Smart inks deal with W. Union
WIRELESS services provider Smart Communications Inc. and the Western Union Company have forged an agreement to jointly develop and pilot a Mobile Money Transfer service in the country that will make low-denomination, high-frequency remittances more affordable to the country’s more than eight million overseas Filipino workers (OFWs).
“This agreement is in line with Smart’s thrust to continuously develop low-cost and convenient mobile remittance channels and communications services for overseas Filipino workers,” said Napoleon Nazareno, Smart president and chief executive officer.
“We recognize the significant role they play in not only contributing to the country’s economy, but also in making sure their families’ financial and communications needs are met at the time they need them,” he added.
Banking links
Smart, which ended 2007 with more than 30 million subscribers, already has an established mobile financial service platform linking local bank accounts to mobile handsets, providing significant convenience for bank consumers.
At the end of 2007, more than seven million Smart subscribers were in the Smart Money system, close to two million of whom are cardholders.
The company has agreements with five Philippine commercial banks and links to over 7,000 ATMs nationwide, more than 100 Smart Wireless Centers and thousands of third-party Smart Money fulfillment partners.
Western Union, together with its affiliates Orlandi Valuta and Vigo, maintains the industry’s largest global Agent network of more than 320,000 locations in over 200 countries and territories.
“In the Philippines, approximately 44 percent of households have a relative or family member working abroad,” said Patricia Riingen, Western Union Philippines vice president. “We believe pairing Western Union’s global reach with Smart’s active subscriber base and access to Philippine bank networks will increase the ease and flexibility associated with moving money back home to friends and family.”
Global system
Once the Western Union mobile money transfer service is launched — expected in the second quarter of this year — the service will connect operators to Western Union’s existing global money transfer system.
When 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. (PR)
