THE POSTAL Services has started offering an international money transfer service.
According to the Central Bank, in 2008 approximately €280 million was transferred from Cyprus to eastern Europe, China and south-east Asia through cash transfer firms.
“Cyprus post offices are focusing on trying to provide new services to satisfy the needs of the Cypriot public, including the large number of economic immigrants who live in our country.” said Andreas Grigoriou, Postal Director.
The money transfer service is being offered as a result of the Cypriot postal service becoming the second agents representing Moneygram, the international money transfer company, in Cyprus. Moneygram has already been represented on the island since 2001 by the firm Ellinas Finance.
The money transfer service will be offered from main post offices, of which there are currently 50 on the island. It will not be available at subsidiary post office branches.
Communications Minister, Nicos Nicolaides, said that it did nevertheless increase the range of services available in smaller communities.
The Moneygram service is not a wire transfer service, such as those offered by banks. It is a cash transfer service. This means that you walk into the post office with cash and hand it over at the counter. It is then entered into the Moneygram International system and a record is sent to the central hub in the US. “Within ten minutes”, according to John Hempsey, press officer for Moneygram International, a code reference is sent back. That code reference can then be texted, emailed or otherwise given to the intended recipient. The recipient then uses the code to receive the amount sent from any Moneygram agent in their country.
Moneygram currently has 186,000 agents in 190 countries. It is also rapidly increasing its coverage as it had only 63,000 agents in 2003.
In terms of rates, the lowest standard rates for cash money transfer in Cyprus are offered by Coinstar, the most ubiquitous provider of the service on the island. Western Union comes in more expensive than Moneygram in terms of its standard rates.
However, each money transfer company also offers special rates to certain countries. Moneygram offers the cheapest rates to Vietnam and Bulgaria. Western Union offers the cheapest rates to the Philippines for amounts over €1,000. For India, Nepal, Pakistan and Bangladesh Moneygram and Coinstar offer the same rates on amounts up to €2,600.
With the exception of these special rates to certain countries, bank wire transfer services are generally far more economical. The Moneygram service also has the advantage that it does not require bank accounts on the part of sender or recipient.
Globally, the cash money transfer service was estimated at over US$400 billion in 2008. Of this Moneygram was responsible for transferring US$250 billion.
Cyprus joins the UK, Italy, Poland, Canada, Jamaica and Ukraine in offering a Moneygram service through its post offices.
