Through the launch of “Edge”, Western Union Business Solutions, the companys B2B arm, hopes to fix the fragmented and cumbersome process of cross-border payments and procurement for businesses. The usual process implies that individual agreements with each supplier need to be struck and often these might be through traditional means rather than online. On top of that, foreign exchange rates can often sting a company.
Edge offers invoicing services in one platform, and allows near real-time service for 22 currencies at its launch. Within a few months, it will support 49 currencies in near real-time. In comparison, often cross-border payments can take several days to clear.
The Edge solution, which lets businesses connect with each other on a central platform and set up invoicing and payments, will launch on April 11 in 6 initial markets - Australia, Canada, New Zealand, Singapore, the UK and the US. The platform will be available in other select markets in 2016.
The new product developed by Western Union will have to face relatively similar services offered by Amazon and Alibaba. Ecommerce giant Alibaba has a platform that allows wholesale buyers and sellers of items to find each other and facilitates payments. Amazon has a similar service called Amazon Business. Both offerings differ from Western Unions service as they offer actual products that can be bought, whereas Edge is mainly a platform for companies to settle transactions and connect.
Western Union has switched its focus to its B2B arm as its core international money transfer business faces challenges from upstarts. Furthermore, the company is betting that Business Solutions - which currently accounts for around 7 percent of revenues - will be Western Unions future growth driver.
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