Western Union and Emirates International Exchange launch cross-border payment solution for UAE SMEs

Western Union, a leader in global payment services, today introduced a service that gives small and medium enterprises (SMEs) in the UAE a new way to make fast and reliable cross-border payments in more than 140 currencies.  The service allows SMEs to make fast account-to-account payments while improving their cash flow, managing currency fluctuation risk and receiving competitive exchange rates. 

Western Union Business Solutions, a subsidiary of Western Union, will offer the service through Emirates International Exchange, a leading exchange house in the Middle East.  

SMEs play an important role in the UAE economy. Approximately 200,000 SMEs are currently operating in the UAE, employing 86% of the workforce and generating 46% of the country’s GDP.  The country’s non-oil foreign trade grew 22% in 2011[2]; and UAE companies expect to increase trade by over 5.5% annually over the next 15 years according to trade forecast data.

Highlighting the importance of the service, Jonathan Knaus, Vice President, Agent Sales & Implementation, Western Union Business Solutions said, “The growth and sustainability of SMEs is a critical component of the UAE’s dynamic economic expansion. But when it comes to cross-border payments, SMEs have generally been underserved.  Western Union Business Solutions understands this market and SMEs’ needs for cross-border regulatory and compliance expertise, multiple currency settlement options and broad availability, which we are able to offer through Emirates International Exchange.”

Traditionally known for its consumer-to-consumer payment services, Western Union entered the SME cross-border payment space with the 2009 acquisition of Custom House and the subsequent acquisition of Travelex Global Business Payments in 2011.  Now, Western Union Business Solutions is a leader in cross-border payments for all businesses, with a focus on SMEs.

Speaking at the launch event, Prrasad Katta, Regional Director – MEA, Western Union Business Solutions said, “According to The World Bank’s ‘Doing Business Report 2012,’ the UAE has been the leading country in the MENA Region for enabling cross-border trade for three consecutive years.  This is a direct result of the sustained efforts and investments by the UAE Government to create an environment that encourages entrepreneurs and SMEs to trade across borders.  In order for that trend to continue, SMEs need a fast, reliable and convenient cross-border payment mechanism, which hasn’t been readily available to them until now.” 

Humaid Mohammed Shattaf, Chairman and Managing Partner, Emirates International Exchange added, “We have shared a strong relationship with Western Union in the UAE over the last seven years offering customers their core service of money transfer and remittance. We are extremely proud and happy to further strengthen our association and pioneer Western Union Business Solutions in the Middle East. The opportunity and need for such a payment solution is tremendous, and we are certain that this new product will definitely help SMEs in the UAE to benefit through convenient, fast and reliable payments.”