In an effort to make electronic payments, including prepaid cards and money transfers, more efficient and convenient for consumers around the world, two global payment services stalwarts, MasterCard (News - Alert) and The Western Union Company, have teamed up.

According to financial analysts, prepaid cards and money transfers can be offered as reliable, convenient and affordable forms of financial services to the financially underserved population around the globe. Within the United States, more than a quarter of the adult population is excluded from the financial mainstream. The prepaid cards and money transfers can significantly help bridge the gap.

According to a press release, MasterCard and Western Union have been collaborating since last year to provide prepaid card services to this segment of the population. Under the collaboration, Western Union (News - Alert) has accepted MasterCard as the preferred brand for its prepaid programs around the world.  MasterCard in turn has made Western Union its money transfer service partner.

The collaboration between Western Union and MasterCard is aimed at simplifying the transfer of money for consumers by making their electronic payment networks interoperable. The collaboration gives the consumers access to a global network for transferring and loading funds onto prepaid cards.

Under the collaboration, Western Union and MasterCard prepaid cardholders are allowed to reload their prepaid cards at MasterCard rePower locations as well as at participating Western Union Agent locations.

MasterCard president and CEO Ajay Banga said, “The primary focus of our global partnership is to enable greater financial inclusion for consumers and provide additional electronic payment options that create efficiencies in their daily lives.”

Consumers using Western Union for money transfer services will be able to arrange for a money transfer to go directly to an eligible MasterCard. Senders will be able to pay for money transfers using a card or account backed by the MasterCard brand and move funds through a participating Western Union Agent location, the companies explained in the release.

“This agreement sets the stage to globalize prepaid services. We’re opening up more options for consumers around the world by combining Western Union’s global network of money movement solutions with MasterCard’s world class global electronic payments network,” Hikmet Ersek, president and chief executive officer of Western Union said in a statement.

In an earlier media release, Western Union’s senior VP for North American operations said that in a recent survey WU has found that  nearly three-quarters of people across the globe think that cash is the perfect gift for making their loved ones’ days better during the holidays.