Western Union Set to Accept Apple Pay

The days of old school wire transfers may be numbered, as Western Union announced yesterday (Jan. 27) it will now accept Apple Pay at its “flagship locations” and affiliated outlets.

The decision comes after internal surveys showed that migrants — the major demographic of Western Union customers — are increasingly using smartphones for communication, as they’ve moved “from a luxury device to an irreplaceable everyday necessity.” Western Union survey data calculates that 6 out of 10 migrants has a smartphone, which is right around the two-thirds of migrants that are international money transfer users. By comparison, 80 percent of non-migrants also own a smartphone, signaling the technology gap between migrants and non-migrants is smaller than what was previously thought.

According to the company, Western Union will be installing Apple Pay-friendly NFC readers in its main branches, starting at its flagship on Broadway in New York City, and will expand to its 7,600 Walgreens and Duane Reade stores that accept Western Union money transfers.

“Our customers have an expectation of using mobile technology to make money transfer service and product accessibility easier,” said David Thompson, who is the global operations and technology and chief information officer for Western Union.”Western Union is rising to the occasion as we harness our system with modifications to link cash and digital transfers between retail locations, mobile phones, prepaid cards, online and traditional bank accounts and ATMs.”

The move into Western Union outlets makes sense for Apple Pay’s expansion plans and marketing strategy. Apple Pay recently announced that regional grocery stores are taking Apple Pay, as companies like Velcro Pay begin offering free POS upgrades for small businesses. The smaller than expected technology gap between migrants and non-migrants also mirrors the parity between older and younger generations that bankers in Britain have also witnessed, echoing Western Union’s sentiments that e-commerce is more a part of daily life than just a mere luxury.