Western Union Expands Initial Test Service from the United States to Cuba

Rhea-AI Summary

Western Union (NYSE: WU) has expanded its pilot program for money transfer services to Cuba, now covering over 4,400 retail locations across the U.S. and Puerto Rico. The initiative, which began on January 4, allows customers to send money electronically to accounts at three major Cuban banks: Banco Popular de Ahorro, Banco Metropolitano S.A., and Banco de Credito y Comercio. Funds can be received in U.S. dollars, with transactions processed via an agreement with Orbit S.A. This expansion marks a significant enhancement in Western Union's service offering, aimed at facilitating financial transfers to Cuba.

Positive

• Expansion to over 4,400 retail locations across the U.S. and Puerto Rico
• Digital services available via WesternUnion.com and mobile app
• Allows electronic transfers to three major banks in Cuba
• Same-day availability for transactions sent before noon

Negative

• Service limited to consumer money transfers only, restricting potential revenue
• Customers cannot send funds to their own MLC bank accounts in Cuba

• Pilot program now includes more than 4,400 retail locations across all 50 United States
• Digital service now available over WesternUnion.com or the Western Union mobile app
• Money can be received electronically into accounts at three major Cuban banks

DENVER--(BUSINESS WIRE)-- Western Union (NYSE: WU) today announced a major expansion of its pilot program providing money transfer services from the U.S. to Cuba.

The initial test phase of the pilot program, launched on January 4, included send service from a select group of U.S. retail locations in the Greater Miami area. Today, it has grown to more than 4,400 retail locations across the United States and Puerto Rico, as well as the availability of digital send service from WesternUnion.com and the Western Union mobile app.

Currently, customers can send money from the U.S. to receivers with bank and debit card accounts at the following banks in Cuba: Banco Popular de Ahorro, Banco Metropolitano S.A. and Banco de Credito y Comercio (Bandec).

To process transactions to Cuba, Western Union signed an agreement with Orbit S.A. who received authorization from the Central Bank of Cuba in February 2022 as a non-banking financial institution to process money transfers to the island.

Service Details

• Funds can be received into bank accounts and debit cards only. Service is limited to consumer money transfers only. U.S. customers can remit up to USD2,000.00 per transaction by presenting valid government-issued identification.
• Money will be available for receipt same day if sent prior to Noon U.S. Eastern Time. Remittances sent after Noon U.S. Eastern Time will be available the next business day.
• Service is available to receivers with Carnet de Identidad IDs and bank and/or debit card accounts at the following banks in Cuba: Banco Popular de Ahorro, Banco Metropolitano S.A. and Banco de Credito y Comercio (Bandec).
• Customers cannot send funds to their own MLC bank accounts/debit cards in Cuba.
• Deposits are available in U.S. dollar currency only, which has the same equivalency to the Cuban Moneda Libremente Convertible (MLC).

The company has plans to expand the program further this year.

WU-G

About Western Union

The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and nearly 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005216/en/

Western Union Media Contact:

Brad Jones

Bradley.Jones@wu.com

Western Union Investor Relations:

Tom Hadley

WesternUnion.IR@westernunion.com

Source: The Western Union Company

FAQ

When did Western Union launch its pilot program to Cuba?

The pilot program was launched on January 4.

How many retail locations are included in Western Union's Cuba pilot program?

The program now includes more than 4,400 retail locations across the U.S. and Puerto Rico.

Which banks in Cuba can receive transfers from Western Union?

Transfers can be received at Banco Popular de Ahorro, Banco Metropolitano S.A., and Banco de Credito y Comercio.

What is the maximum amount that can be sent per transaction to Cuba?

Customers can remit up to USD 2,000.00 per transaction.

Is same-day availability for funds a feature of the Western Union Cuba service?

Yes, funds can be available the same day if sent prior to noon U.S. Eastern Time.