2013-04-18 FoxBusiness - Bitcoin Buzz Draws Western Union, MoneyGram

[Zomdifros]

http://www.foxbusiness.com/news/2013/04/18/bitcoin-buzz-draws-western-union-moneygram/

The fervor over the digital currency bitcoin has drawn interest from two of the world's largest movers of money.

Western Union Co. (WU) and MoneyGram International Inc. (MGI) are studying ways their customers could use their services to send and receive money transfers denominated in bitcoins, the companies' executives say.

Both companies run remittance networks commonly used by immigrants to send money to friends and family members in foreign countries. Western Union also operates a business-solutions unit that sells services to companies for sending payments to other businesses.

Yeah I'm not exactly sure but I have the slightest hunch this news may be kinda bullish.

[psybits]

I think it's awesome Bitcoin is at least on the radar of companies like this. When the price stabilises more (at $1000 , and as adoption keeps growing, it's only a matter of time until one of these companies adopts BTC and the market cap soars.

[Gordonium]

Last time they were just talking about digital currencies in general but now they named Bitcoin. When executives talk like that in public it usually means that huge steps are already taken. This is really bullish.

[nebulus]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

[psybits]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

If they provided physical locations worldwide (Western Union offices) where people can buy and sell Bitcoins in person, and send them to another BTC wallet (like a family member on the other side of the world), if they wanted to as well. There are plenty of ways they could integrate BTC into their busines model.

In fact I'd say the first business to enable walk in purchases of Bitcoin at physical in-store locations around the globe (making BTC far more accessible to all) will make a killing.

[Piper67]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

I'm not so sure the shooting your own foot analogy applies. Bitcoin could save WU millions in infrastructure (if they discarded their incredibly antiquated network and switched over to the blockchain, for instance). And the overwhelming majority of the population of the planet does not have access to the items necessary to obtain bitcoins themselves (access to the internet, the ability to transfer money into and out of an exchange, a way to securely hold the coins and so on).

If you assume that Bitcoin isn't going to die any time soon, piggybacking onto it might just be the smartest thing Western Union and Moneygram could do.

[psybits]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

I'm not so sure the shooting your own foot analogy applies. Bitcoin could save WU millions in infrastructure (if they discarded their incredibly antiquated network and switched over to the blockchain, for instance). And the overwhelming majority of the population of the planet does not have access to the items necessary to obtain bitcoins themselves (access to the internet, the ability to transfer money into and out of an exchange, a way to securely hold the coins and so on).

If you assume that Bitcoin isn't going to die any time soon, piggybacking onto it might just be the smartest thing Western Union and Moneygram could do.

Yes it would be a way to future proof themselves for sure.

[Gordonium]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

I'm not so sure the shooting your own foot analogy applies. Bitcoin could save WU millions in infrastructure (if they discarded their incredibly antiquated network and switched over to the blockchain, for instance). And the overwhelming majority of the population of the planet does not have access to the items necessary to obtain bitcoins themselves (access to the internet, the ability to transfer money into and out of an exchange, a way to securely hold the coins and so on).

If you assume that Bitcoin isn't going to die any time soon, piggybacking onto it might just be the smartest thing Western Union and Moneygram could do.

This. By integrating Bitcoin WU is saving itself from going to obsolete. Adapt or die. Bitcoin is here to stay.

[Zomdifros]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

They have a worldwide network of offices where money can be changed, compliant with all local and international laws. If they would add Bitcoin to the list of currencies their customers would be able to buy, they could easily become the market leader in exchanging Bitcoins.

[Missionary]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

They have a worldwide network of offices where money can be changed, compliant with all local and international laws. If they would add Bitcoin to the list of currencies their customers would be able to buy, they could easily become the market leader in exchanging Bitcoins.

This was my first thought.

[Mike Christ]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

I'm not so sure the shooting your own foot analogy applies.

Their business model is fees. How the hell are they going to convince people to send money through them via bitcoin without turning people straight to bitcoin - no middle man lesser fee situation?

The only way it would work is if they helped fund exchanges, and made it considerably less of a bitch than it is now.  I think they'll try to cater to the Bitcoin crowd, but wouldn't necessarily adopt Bitcoin itself.

[nebulus]

Grr.. Removed my post by mistake.

This is defintelly a great win for BTC but for them it the "last gasp for air". (better analogy needed) Like Mike said if anything happens they are going to cater to the coin users. Feel priviledged. :3

[meanig]

Since when shooting oneself in the foot is a good business strategy? Any kind of strategy for that matter?

I'm not so sure the shooting your own foot analogy applies.

Their business model is fees. How the hell are they going to convince people to send money through them via bitcoin without turning people straight to bitcoin - no middle man lesser fee situation?

The only way it would work is if they helped fund exchanges, and made it considerably less of a bitch than it is now.  I think they'll try to cater to the Bitcoin crowd, but wouldn't necessarily adopt Bitcoin itself.

They could charge fees for exchanging money between BTC and local currencies. Also WU spends huge amounts of money on anti fraud procedures to comply with their licensing agreements. If they became a Bitcoin exchanger and encouraged customers to bypass their proprietary payment network and use the blockchain instead they could absolve themselves of policing payments and save loads of money.   

[Stephen Gornick]

Remittances go to pay for housing and for food and for maintaining your family," he said. "If you're sending to a rural part of Mexico, my guess is that the merchant is not going to be accepting bitcoins. They want pesos."

- Read more: http://www.foxbusiness.com/news/2013/04/18/bitcoin-buzz-draws-western-union-moneygram/#ixzz2QqtZN0Rb

Yup.  But instead of having to go down to the Western Union agent location to pick some pesos up, you send a text to your friend's sister who buys bitcoins and pays pesos in exchange.   That person makes a little from each transaction.  Western Union gets about $8 + a vig on the exchange rate, so for a remittance transfer valued  at $100 the remittance recipient might get just $88.      With the person providing independently money exchange, that same transaction might deliver $94 worth and the person providing the exchange makes at least $5.  Sure that's not a lot of money but six of those a day and that person would be making more with this side job than from other employment options.

[Mike Christ]

Remittances go to pay for housing and for food and for maintaining your family," he said. "If you're sending to a rural part of Mexico, my guess is that the merchant is not going to be accepting bitcoins. They want pesos."

- Read more: http://www.foxbusiness.com/news/2013/04/18/bitcoin-buzz-draws-western-union-moneygram/#ixzz2QqtZN0Rb

Yup.  But instead of having to go down to the Western Union agent location to pick some pesos up, you send a text to your friend's sister who buys bitcoins and pays pesos in exchange.   That person makes a little from each transaction.  Western Union gets about $8 + a vig on the exchange rate, so for a remittance transfer valued  at $100 the remittance recipient might get just $88.      With the person providing independently money exchange, that same transaction might deliver $94 worth and the person providing the exchange makes at least $5.  Sure that's not a lot of money but six of those a day and that person would be making more with this side job than from other employment options.

Ouch.  All the more reason to adopt Bitcoin in all its naked glory

[elux]

Greatest news of all time.

[marcus_of_augustus]

Bitcoin network structure that is completely independent of the banks gives MoneyGram and Western Union options to completely route around the banking networks, fiat currency and the arcane AML/KYC regulatory capture hurdles for their remittance businesses.

Bitcoin gives them a network tool to beat the banks at their own games. They would be great ally for bitcoin. Western Union transfers only become such a pain in the ass to deal with after the banks imposed the rules via their bought and paid for congress critters.

[meowmeowbrowncow]

I tend not to believe WU/MG are seriously considering this.


It would be like painting a big 'bureaucrats, please rape me in the arse' target on their back.


Granted, I need to do more research on this topic, but I have a distinct feeling that govt would not like WU/MG piggybacking on Bitcoin for their remittance network.

[Mike Christ]

I tend not to believe WU/MG are seriously considering this.


It would be like painting a big 'bureaucratics, please rape me in the arse' target on their back.


Granted, I need to do more research on this topic, but I have a distinct feeling that govt would not like WU/MG piggybacking on Bitcoin for their remittance network.

But but but progress and innovation   What's with the government and hating anything which can help them succeed?

[grondilu]

In fact I'd say the first business to enable walk in purchases of Bitcoin at physical in-store locations around the globe (making BTC far more accessible to all) will make a killing.

Agreed.