MoneyGram International (NYSE:MGI), a leading global money transfer company, and National Bank of Abu Dhabi(NBAD), a leading bank in the UAE, today announced a strategic agreement that will make international money transfer services via mobile phones available for the first time to the bank's customers all over the UAE.
NBAD is the first MENA bank to allow international remittances via mobile phones to more than 200,000 locations across 190 countries around the globe.
The agreement, which significantly expands MoneyGram's presence in this important country, will enable NBAD customers to initiate mobile money transfers virtually any time and any where, without the need to go to a retail location. The mobile money transfer service enables NBAD customers with an Arrow account or an NBAD-issued prepaid card to transfer money via mobile phone. Those who have no accounts at NBAD or not holding an NBAD-issued prepaid card can still use the Arrow service by using Visa co-branded prepaid cards.
"We recognize the critical role that mobile technology is playing in the evolution of the remittance market and we are delighted to partner with NBAD to be the first to offer international money transfer services via mobile phone in the UAE," said Nigel Lee, MoneyGram's executive vice president for Europe, Middle East, Africa, and Asia Pacific. "This partnership with NBAD reinforces our commitment to deliver innovative mobile money transfer products and services and provide consumers with flexibility and choice in how they send and receive money."
UAE has been recognized as a major source of remittances worldwide. The World Bank recently estimated remittances from the UAE to be between $15 billion and $20 billion in 2009 with potential to continue growing in the coming years. In GCC, the size of the remit market is nearly $50 billion. In addition, the UAE has one of the highest mobile phone penetration rates in the world.
"An overwhelming majority of expatriates in the UAE remit money to their families in their home countries. The Bank wanted to bring to the market a product that serves this large demographic. We worked very methodically for more than a year with our partners to fine-tune the Arrow service to ready it for consumers to use it to conduct international remittances," said John Malouf, the General Manager of Consumer Banking at NBAD. "NBAD understands a key component to delivering quality service is by being a leader in innovation. The Arrow mobile phone payment service and its expansion into international remittance is another example of NBAD's innovative leadership in the market place."