Zain and Western Union announce partnership

Corporate IT Update, June 23, 2009

CORPORATE IT UPDATE-(C)1995-2009 M2 COMMUNICATIONS

Mobile operator Zain (KW:ZAIN) and money transfer specialist Western Union (NYSE:WU) announced on Tuesday they will work together to deliver mobile money transfer services in countries in Africa and the Middle East through Zain's new Zap platform.

No financial details were disclosed.

According to the company, the Zap service provides Zain customers access to 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 has been operational in Kenya, Tanzania and Uganda for several months. The operator has also announced plans to introduce Zap in 22 markets.

Once the joint service is launched, consumers will be able to send cash money transfers from participating Western Union locations worldwide in the same way they do currently. 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 ('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.

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