Western Union to launch remittance services to Cuba

US global payments company Western Union announced it would launch remittance services to Cuba on Monday, the second day of President Barack Obama's historic visit to the communist-ruled island nation.

Western Union will begin money transfers to Cuba from all over the world by the end of June, the Englewood, Colorado-based company said in a statement.

"As the first US company with scale to move money from across the world to Cuba, we welcome the regulatory and policy changes put in place by the US government that allow us to offer these services," Odilon Almeida, president of the Americas and European Union at Western Union in a statement.

According to Western Union, cash remittances to Cuba amounted to US$2.8 billion in 2013, with 90 percent originating from the United States.

The company's decision came after the Obama administration eased some travel and trade restrictions on Cuba last Tuesday as it seeks to end the decades-old US embargo on the country. The various measures build on the US push to break down barriers between the two former Cold War-era foes.

Western Union said the new services will allow remittances to be sent to family members and other Cuban nationals for family expenses and personal support for private economic activity.

"As we have found in other parts of the world, expanding remittances will provide a vital opportunity to improve the standard of living for Cuban people, contribute to savings and eventually investment towards small businesses," Almeida said.

Obama and his Cuban counterpart Raul Castro met Monday for groundbreaking talks on ending the decades-long standoff between the two neighbors.

Obama is the first sitting president to visit Cuba since 1928. His three-day visit comes more than a year after he and Castro surprised the world in December 2014 by announcing that their countries would begin normalizing relations.