Zain and Western Union announce an alliance at the GSMA Mobile Money Summit in Barcelona to deliver cross border mobile remittances to Zain's Zap mobile money customers.

BARCELONA, Spain - (Business Wire) Zain, (KW: ZAIN), the leading mobile operator in the Middle East and Africa, and Western Union, (NYSE: WU) a global leader in money transfer, today announced that they will work together to deliver mobile money transfer services in countries in Africa and the Middle East through Zain’s new Zap platform.

The Zap service provides Zain customers access to a full range of transactional services from their mobile phones. Customers can interact with select bank accounts, top-up or transfer airtime, and move money to businesses, friends and family. The service allows customers to pay bills such as electricity, and can even be used to settle grocery bills in the supermarket. Zap has been operational in Kenya, Tanzania and Uganda for several months, making mobile banking services available to more than 100 million people in East Africa. Zain has announced plans to introduce Zap in 22 markets.

Western Union has a global agent network of more than 334,000 locations in 200 countries and territories. Once the service is launched with Zain, consumers will be able to send cash money transfers from participating Western Union^® locations around the globe in the same way they do today. Zap customers who are enrolled in the service in select countries will be able to choose whether they want to receive their money in cash at a Western Union Agent location or in accounts tied to their mobile phones (their “mobile wallets”).

Money-transfer receivers who receive funds in their mobile wallets will be able to pay bills, buy airtime or cash out through the Zap service at more than 12,000 Zap agent locations in East Africa.

The service will be introduced in select countries when regulatory approval has been secured. The service with Zain will be operational in countries with significant international and intra-Africa remittance activity.

“Zain’s initiative has the potential to provide millions of people with access to convenient financial services for the first time,” said Gail Galuppo, Executive Vice President and Chief Marketing Officer, Western Union. “The ability to move money with a mobile phone is changing the landscape of financial services. We look forward to connecting Western Union’s global network with the Zap platform to extend services throughout Africa.”

According to industry group Aite, people living outside their country of origin sent nearly US$400 billion in remittances around the globe in 2008. Sub-Saharan Africa alone received an estimated US$10.8 billion in remittances in 2007.¹ Major recipients of remittances include Nigeria, Kenya, Sudan and Uganda.

Announcing the launch, Dr. Saad Al Barrak, Zain Group CEO, said, “This service will enable the millions of people who are abroad to send money home swiftly to their friends and families not only in the cities but also directly to the villages across these countries.

“This partnership clearly demonstrates the revolutionary role mobile communication can play in improving the livelihoods of the communities we serve, proving that our Zain brand promise of ‘A wonderful world’ is more than just a slogan. We understand the vital role remittances play in sustaining families separated from the main breadwinner, and this service will add a measure of reassurance to those who rely on financial support from abroad.”

Western Union has established cross-border Mobile Money Transfer pilots in a variety of corridors around the globe. The Western Union service currently allows mobile subscribers in the Philippines to receive funds sent from select Western Union Agent locations directly into their mobile wallets. In the future, Western Union will also offer consumers the option to send funds directly from their mobile phones for pickup at Western Union Agent locations globally or directly to another mobile subscriber. Western Union is extending its global distribution network through alliances with mobile network operators.

According to independent research from Informa, by the end of 2013, more than 424 million mobile users will be sending money to other mobile users in the same country via their mobile phone, and 73 million will be sending money internationally via their mobile phones. The top three regions – Western Europe, North America, Africa and the Middle East are expected to account for more than 75 percent of the global international mobile money transfer gross transaction value.

This service and alliance with Western Union is a unique deal for Zain and falls within Zain’s “Drive11” program to focus on customer-facing services and commercial activities. “Drive11” is a component of the ACE* strategy designed to propel Zain into the world’s top-10 mobile telecommunications companies by the end of 2011.

¹ World Bank

About Zain

Zain is a leading emerging markets player in the field of telecommunications aiming to become one of the top-10 mobile operators in the world by 2011. Today it is the 4th largest mobile network in the world in terms of geographical footprint with commercial presence in 24 countries spread across the Middle East and Africa providing mobile voice and data services to 64.7 million active customers as at 31 March 2009.

Zain operates in the following countries: Bahrain, Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Iraq, Jordan, Kenya, Kuwait, Malawi, Madagascar, Niger, Nigeria, Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda and Zambia. In Lebanon, the company manages the network on behalf of the government operating as mtc-touch. In Morocco, Zain in a joint venture, owns 31 percent of Wana Telecom.

On May 18, 2009, Zain entered into a merger agreement with Palestinian Telecommunication Company Plc (Paltel) that will result in Zain attaining 56.5 percent of the company subjective to regulatory approvals.

Zain offers innovative services in its markets such as One Network, the world’s first borderless mobile telecommunications network enabling customers to receive calls and sms without charge and to make them at local rates throughout many countries in Africa and the Middle East. Customers can also top up their mobiles with airtime bought in their home country or from more than 1,000,000 outlets across 18 countries.

The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). Zain is listed in the Financial Times’ Global 500 Index which ranks the world’s largest companies based on market capitalization (http://www.ft.com/reports/ft5002008). For more, please visit www.zain.com or email info@zain.com.

About ‘ACE’ and ‘Drive11’

ACE is Zain’s corporate strategy. The acronym means Accelerate, Consolidate and Expand, which are the three pillars of its growth. The objective of ACE is to propel Zain towards becoming a global force in mobile telecommunications by the end of the year 2011. This year, Zain announced a strategic program on its ACE agenda, named ‘Drive11’, which will enable it to achieve ultimate efficiency in value creation. As a result, Zain will put increased focus on customer-facing functions and will enhance its control on other functions by centralizing them or by outsourcing them to strategic partners. This program comes at a vital stage of the company’s expansion vision. It will maximize economies of scale and realize significant efficiencies, providing the company with the necessary thrust to capture the large growth potential in the markets in which it operates.

About Western Union

The Western Union Company (NYSE: WU) is a leader in global money transfer services. Together with its Vigo and Orlandi Valuta branded money-transfer services, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a combined network of more than 379,000 Agent locations in 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com.

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WU-G

Western Union
Kristin Kelly, +1-720-332-4751
kristin.kelly@westernunion.com