The Western Union Company is partnering with Nigerian payment operator Virtual Terminal Network to offer a mobile money transfer service that will allow consumers to use Western Union to fund a VTN VCASH account, according to a press release.

Using the account, subscribers to VCASH can transfer Western Union remittances up to $300 directly into their accounts. That money can then be used for peer-to-peer payments, bill payment or even at the point of sale.

"Being able to move international money transfers into mobile phones in a nation that has a greater penetration of mobile phones than bank accounts is central to facilitating financial inclusion," said Western Union regional VP Aida Diarra.

Nigeria has 105 million mobile phone subscribers who received $21 billion in annual remittances last year, though only around 30 percent of Nigerian adults have bank accounts, the companies said.

"We are thankful to the Central Bank of Nigeria's mobile payment regulatory framework, which allows non-bank model operators to facilitate international remittances to both scheme and non-scheme recipients," said Peter Ojo, chief executive officer of VTN. "Such innovation within strict regulatory guidelines facilitates greater economic prosperity at all levels for all our citizens and residents." 

Read more about mobile money/P2P payments.