Western Union eyes links with all Gulf post offices

Western Union Financial Services, with 200,000 global agents in more than 190 countries, is exploring possibilities of tying up with post offices in other GCC countries, similar to the agreement it has established with Emirates Post.

The company's strategy in each country depends on the legal framework of that particular state, Jean Claude Farah, its director for the Middle East, Pakistan and Afghanistan, told Gulf News.

He also said the company was planning to establish a presence in more countries in coming years. "Our immediate focus will be countries in the region like Sudan, Iran, etc," he said.

Claude Farah said Western Union had tie-ups with post offices in many other countries. "Cooperation with post offices is a favoured strategy and that is the reason we have struck deals with post offices in India, France, Lebanon, Jordan, etc.

The Bahrain Monetary Agency, the country's regulatory body, has allowed Western Union to appoint non-financial entities as agents. "But many countries, including the UAE, do not allow this."

Claude Farah said South Asia had always been the largest market for the company.

"Volumes to India, where we have 18,000 locations, multiplied by 15 times in five years. During 2004 alone, the growth was 100 per cent over that in the previous year."

He dismissed the notion that Western Union's charges are higher. "Look at the facilities and vast number of locations where we offer our services.

"Besides, we have introduced an innovative insurance scheme for the benefit of our customers, in association with American Life Insurance Co's General Insurance Division (Alico General Insurance)," he said.

The new plan — Continuity of Income — is available to all UAE customers sending money via Western Union to recipients in India, Pakistan, Nepal, Bhutan, Bangladesh and Sri Lanka.

When a money transfer is made, customers will have a choice to sign up to the plan at no extra charge.

Agreeing to the plan will allow the sender to be insured against loss of income due to death or disability due to an accident.

If a claim is made, the beneficiaries, in this case the receivers of the money transfer, will receive a monthly payment of the actual amount sent or a minimum of Dh1,468 to a maximum of Dh3,670 per month for 12 months.