Western Union to Serve SMEs of Malaysia - Analyst Blog

The global leader in money transfer, Western Union Co. WU, has launched Western Union Business Solutions, its dedicated business payment unit in Malaysia. The opening reflects the company's concerted effort to serve small and medium enterprises (SMEs) in that country.

Western Union will address the hindrances faced by the Malaysian SMEs relating to forex transactions through its new service. These transactions include overseas payments and foreign currency translation.   

Through the Western Union services, the SMEs will be able to enjoy faster transaction processing on a transparent and real-time pricing basis. The enterprises will also receive minute details such as the exact amount of funds transacted (payment/receipt) and timing of receipt or payment of funds which will iron out any uncertainty pertaining to fund flows. The services would also help the SMEs to control their budgets better.

Moreover, the SMEs will have a broader transaction choice with an array of over 130 currencies on offer as well as the ability to make payments in more than 200 countries and local clearing in more than 70 currencies.

Western Union is bent on serving the SMEs in Malaysia since these form the backbone of the economy and contribute significantly to the country's national income. SMEs accrue approximately one-third of the country's GDP and forms 20% of the country's total export.   

Apart from Malaysia, Western Union is already serving SMEs in London, France, Germany, Ireland, Italy, Middle East. The company foresees a huge opportunity in the global SME market, which is comparable in size with that of the cross-border remittance market. In the coming years, small and mid-sized firms of all types and in every region expect to generate more international revenues.

Another money transfer company, Moneygram International Inc. MGI also has facilities worldwide for serving SMEs.

Western Union currently carries a Zacks #3 Rank (Hold).

Better-ranked players include Xoom Corp. XOOM and Fidelity National Information Services, Inc. FIS. Both sport a Zacks Rank #1 (Strong Buy) and look attractive.