Western Union, one of the oldest money transfer companies in the world, plans to rapidly expand its network in India.
The company, a subsidiary of the First Data Corporation of the United States, would be increasing its locations from 1,700 to 2,500 by the year-end, a senior company official said.
"We want provide best services to about 24 million non-resident Indians throughout the globe," Carlo Betti-Berutto, regional vice-president, of Western Union Financial Services Ltd said.
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At present, the $2 billion company is operating in the country through various associates such as the department of post, Sita World Travel, Transcorp International, Wall Street Finance and JK industries.
"There are around 250 post offices where out services are available and we propose to increase it to around 400 post offices by the year-end," Berutto said. He said the company's services are available in the post offices covering all the regions of the country.
However, he clarified that because of Reserve Bank of India (RBI) guidelines, currently it was providing only inbound services. "Through our service, one could receive money here in India from a sender in the US in about 10 minutes," a senior official of Western Union said.
"Indians abroad send about $18 billion home and This offers a tremendous business opportunities," Berutto said. Western Union began operations 150 years ago and is a major money transfer company today, covering 185 countries in 95,000 locations.
At present, people transfer money either through the illegal hawala rout or through commercial banks that have correspondence banking relations. In the case of transfer of money through banks, the process could take few weeks.
The company was founded in 1851 in the US, as The New York and Mississippi Valley printing telegraph company. Its name was changed to the Western Union Telegraph Company in 1856, signifying the union of 'western' telegraph lines with eastern lines into one system.
In 1994, Western Union was acquired by First Financial Management Corporation and its became a subsidiary of First Data Corporation in 1995 when FDC and FFMC completed their $ 7 billion merger.