Western Union Steps in for a Slice of Mobile, Social Payment Markets
It wasn’t so long ago that the name to trust for sending money via remote was Western Union.
While that’s changed somewhat over the last couple decades thanks to mobile payments, electronic transfers and a host of other options, Western Union seems determined to prove it’s not out of this market yet with its new product, WU Connect.
WU Connect can be added directly to social media or messaging services, and allow those users to quickly transfer money from these interfaces. Users will need to sign up with a standard payment mechanism—debit or credit card or bank account outright—and then users will be able to route money from these instruments to others as desired.
While WU Connect’s fee structure is as yet unknown, the security involved might be one of the better ones around; Western Union noted that it would be “among the most robust,” reports suggest, from a compliance standpoint.
Granted, it doesn’t sound like Western Union is offering anything here that hasn’t already been done before by a host of other competitors. However, there may be one critical advantage here that the company can bring to bear: its name recognition. Western Union enjoys incredible name value, and if it can tap into that power of security and familiarity, it might well be able to pull some users who wouldn’t have put mobile payments to work into the fold.
Going after users of currently-used services isn’t a smart idea; WU Connect doesn’t seem to have much here that others haven’t already offered for some time. But if WU Connect can get new users involved, it might have a competitive edge. It might also find an edge if it can be competitive on fees; paying money to send money is a tough proposition, so the less money Western Union demands to send money, the better off it will likely be long-term.
Better security certainly couldn’t hurt either, and coupled with the power of its name recognition, it might prove a real leader in the field if it can resonate with those avoiding mobile payments altogether.
It’s going to be some time before we see how this turns out, but WU Connect will be walking into a hotly competitive market. WU Connect will have to cover a lot of ground quickly to make up for that lost time, and in the end, it may be something of a minor miracle if it can pull it off.