By Mohammed Waseem
Just like the European Union consists of a number of member countries sharing common interests, there is a union in Europe for money transfers consisting of postal organizations. The company is called Eurogiro, which was founded in 1993 by 14 European postal organizations with an aim to develop worldwide business relating to cross-border payments of both retail and wholesale financial services, for the benefit of its members.
Today, they have members in few other continents apart from Europe; they have members in Africa and Middle East, the Americas and Asia Pacific. They have presence is in over 50 countries now, with over 60 members including postal organizations, post banks, commercial banks and other payment service providers. They operate with an aim to increase the business of its members. They have partnered with Western Union for urgent cash transfers, with Deutsche Postbank for EUR Settlement Services (ESSP) and with SWIFT for transactions on SWIFTNet. They have recently partnered with Ericsson for mobile technology for payments.
They enable people to reach the unbanked via over 500,000 post offices and bank branches which offer Eurogiro’s services to their customers. Post offices joining the Eurogiro community aim at modernizing their services, automating cross-border payments, bringing new businesses. Banks join the community to exchange payments to all the regions through the members and to offer high quality and flexible payments services.
Eurogiro is a trusted partner for cross-border payments at a global level with over 30 million transactions processed every year. Payment services they offer include cash transfers, account transfers and settlement solutions.
Cash transfers use the post office network around the world through members for cross-border transfers. They have services ranging from semi-urgent transfers (maximum 2 working days), money order and urgent transfers. The fees and limits depend on the country and the organization. Account transfers are credits into bank accounts, which use the bank branch network across the globe. This service enables customers to transfer amounts in bulk as well, with flexible speeds. Banks offer services such as credit transfers (maximum 4 days), urgent transfers and transfers into non-member bank accounts.
The settlement solution Eurogiro offers is the ESSP service, which is a huge benefit for payment settlements, a customer need not keep a EUR account with every single member. Settlement usually takes 2-3 days. This service helps the members to optimize their liquidity management.
Eurogiro is working on further developments in order to strengthen the network further and reach every corner of the globe with world-class services.