To enter cross-border B2B market
The Western Union Company has completed the acquisition of international business-to-business payments provider, Custom House.
With its focus on cross-border payments for small-to-mid-sized enterprises (SMEs) and an annualized revenue run rate of $100m, the acquisition of Custom House is expected to introduce Western Union to a new market, expanding its service offerings and customer base.
Western Union estimates that the SME cross-border payments market generates global revenue at least as great as the consumer-to-consumer money transfer market.
Custom House, which will be re-branded under the Western Union umbrella of services, will continue to be headquartered in Victoria, British Columbia, under the leadership of its existing management team.
Christina Gold, president and CEO of Western Union, said: Custom House opens up a world of opportunity for its customers. It enables small-and-medium-sized businesses to operate on a global scale, simplifying international payment transactions and managing the risks associated with foreign exchange. We believe that leveraging the brand, global footprint and financial strength of Western Union will enable Custom House to accelerate its international expansion and growth.
Ranjana Clark, president of global business payments and head of global strategy at Western Union, said: Custom House has a proven operating model, seasoned management team and differentiating technology. Its relatively small share of a large and expanding market offers an incredible runway for growth. This acquisition makes Western Union an instant player in the business-to-business payments space and its account-to-account capabilities complement our existing services.