Western Union Now Available at Selected Bank of China Branches

Western Union and Bank of China are teaming up to offer money transfer services in various government-owned bank branches. Both considered the announcement timely, as the country prepares for its biggest holiday celebration, Chinese New Year.

Western Union has been in China since 1995, but the latest deal with the largest local bank in the country signifies the financial establishment’s interest in cross-border transactions in China.

Experts say the partnership is a strategic move to compete against the rise of private digital banks. Tencent’s WeBank (currently on limited launch) and Alibaba’s MyBank are set to go live later in the year. Both platforms are fully capable of handling local and international payments.

Zhu Shumin, Bank of China EVP, said, “Cross-border financial services have always been Bank of China’s competitive edge and key focus. Western Union is one of the world’s largest and most experienced international money transfer companies, and Bank of China is the most international and diversified Chinese commercial bank.”

For now the remittance services are only available in major Bank of China branches. The government plans to expand its new offering to an additional 10,000 locations. No timeframe was given on how long it would take to deploy the new payments option in rural areas, where banking services are extremely restricted and lacking.

Both parties are also working together on a feature that would allow individuals to allocate money from Western Union directly into the receiver’s bank account. The duo plans to release this option through online banking and self-service kiosks for added convenience.

“Through our landmark agreement with Bank of China, consumers can enjoy unprecedented convenience when sending money to and receiving money from their friends and families,” highlighted Carter Hunt, Senior Vice President and General Manager for Western Union U.S.