Western Union, VTN Launch Mobile Payment Service

The Western Union Company, the global payment solution provider in partnership with Virtual Terminal Network (VTN), leading Nigerian payment operator have launched a new transfer service that allows subscribers in Nigeria use their mobile phones to direct Western Union funds into their electronic VTN VCASH account.

According to Africa news, VCASH subscribers can use the mobile money service to directly transfer up to $300 of one Western Union remittance received, and combined daily remittances of up to $800 into their accounts.

The Monies in the VCASH account can then be used for transactions, payment of bills, make bank deposits or transferred to other VCASH users.

Aida Diarra, Western Union Regional vice president for North, Central and West Africa said: “Western Union is pleased to launch this international mobile money transfer service in collaboration with VTN VCASH in Nigeria. Being able to move international money transfers into mobile phones in a nation that has a greater penetration of mobile phones than bank accounts is central to facilitating financial inclusion. ”

According to World Bank, Nigeria which has a population of over 160 million, currently has over 105 million mobile phone subscribers and received $21 billion in annual remittances in 2012.

The Bank furthered saying the country was underbanked. Only 29. 7 percent of adults over the age of 15 are banked.

Peter Ojo, chief executive officer of VTN said: “The choice, flexibility and convenience (of the new mobile payment service) – given the vast remoteness of some parts of our nation – are priceless.”

“We are thankful to the Central Bank of Nigeria’s (CBN) mobile payment regulatory framework, which allows non-bank model operators to facilitate international remittances to both scheme and non-scheme recipients. Such innovation within strict regulatory guidelines facilitates greater economic prosperity at all levels for all our citizens and resident”, he added.