A rapid change is being witnessed in the ways of transferring money among consumers throughout the globe. The findings of the survey undertaken by the world's leading money transfer company, Western Union Co. ( WU) suggests this is true.
The survey named Western Union Payments Money Mindset Index, reveals that consumers are shifting to online as well as mobile mode of payments. In the U.S. alone, 39% of consumers said they would pay more bills online in 2013, while 12% were willing to pay more bills by mobile phone.
Western Union is intent to grow its mobile payment channel of business (SMS, and mobile web, as well as walk-in, phone and online payment services), since it foresees tremendous growth in this line of money transfer service.
In case of an emergency payment, 14% of the consumers are eager to choose payment via mobile. Moreover, 25% express their intention to use less of the traditional mail service to pay bills.
The bill payment landscape is witnessing sweeping changes regarding the pattern in which the consumers are willing to make payments. Some of the payment options are 46.5% of bills paid via a biller, bank or credit union website; 20.2% of bills paid via mail; 19.6 of bills paid through automatic deduction or recurring payment; 8.7% of bills paid in-person at a walk-in location; 3% of bills are paid via a landline phone; and 2% of bills are paid via mobile phone.
In order to keep pace with the fast changing trends in the money transfer industry, Western Union is aggressively embracing the use of new age technology for flawless service to customers. Mobile payments are gaining momentum due to convenience and round-the-clock accessibility. This service is expected to witness faster adoption rate than any other electronic channel. The company already operates mobile money transfer service around the world in countries such as Afghanistan, Bangladesh, El Salvador, Guatemala, Indonesia, Kenya, Madagascar, Malaysia, Paraguay, the Philippines, Tanzania, Uganda, Vietnam, and the U.S.
Another player from the same industry Moneygram International Inc. ( MGI) also offers mobile payment service.
Western Union currently retains a Zacks Rank #3 (Hold).
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