UPU Partner with Eurogiro

Wednesday 9 June 2004 11:18 CET | News

Universal Postal Union (UPU) and Eurogiro Network A/S have combined forces to improve the transfer of money through postal outlets and banks by modernizing the Money Order.

In terms of the agreement, the two organizations will connect their electronic money transfer networks for the exchange of the new Tele Money Order. This will give their members a more competitive edge in the market for cross-border money transfers. The agreement is further proof of the two organizations efforts to expand the use of electronic solutions for postal financial services. While the number of paper-based international money orders still represents a significant amount of traffic (more than 15 million items in 2002), Posts worldwide are increasingly moving towards cheaper, more secure and time-guaranteed electronic funds transfers. Postal networks and financial services are trusted institutions that reach many low-income and isolated areas. At present, some 160 UPU member Posts offer fund transfer systems, 47 of them having electronic transfer capabilities. 22 Posts use the UPUs International Financial System (IFS), an international money transfer network. The Eurogiro System (ELS) is the most commonly applied system for cross-border financial transactions used by major European Posts as well as a number of Posts outside Europe. The system is also widely used by banks and connects the Eurogiro members to a number of alliance partners. Eurogiro estimates that around 24 million transactions will be exchanged over their network in 2004. Exchanging Tele Money Orders via the two networks will significantly expand global access. The new product – the Tele Money Order – was developed in close co-operation between the two organizations. When it becomes available on both networks in April 2005, the Tele Money Order (TMO) will offer customers a two-day time-guaranteed product at a competitive price and with high security features.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce