With the launch of the service later this year, Zoompass users in Canada will be able to send funds directly from their mobile wallets. Recipients will be able to pick up their cash at more than 380,000 Western Union Agent locations in 200 countries and territories.

Cross-border mobile-to-mobile transfers will also be available via Western Union alliance partners Globe Telecom and Smart Communications in the Philippines.

Mobile users can currently send and receive money within Canada using the Zoompass wallet application for the Apple iPhone, BlackBerry, Android, and other devices. The system was released in June last year through a joint venture between Canadian wireless operators, Bell Canada, Rogers Communications and Telus.

Robin Dua, president of EnStream, says: "International remittances are a logical extension of the Zoompass functionality, and they build on our vision to give every Canadian mobile subscriber the ability to send money to anyone, anywhere in the world."

The deal marks a a breakthrough for Western Union's mobile money operation, which has so far constructed alliances with wireless operators in developing countries.

Brian Fox, Western Union SVP and general manager for Canada, says: "This is our first strategic alliance with a mobile operator consortium in a country where 96% of the population has a bank account."