Western Union now makes forex payments easy for local SMEs too

International money transfers used to be clear cut: banks handled the accounts of large companies while remittance firms took care of small sums such as earnings of overseas workers. Small and medium enterprises (SMEs), however, had nothing tailored specifically to their needs – until now. “SMEs are the backbone of our economy, comprising 99 percent of all businesses in the Philippines and providing two-thirds of all jobs in the country. They form the fabric of all communities, yet the odds are often stacked against them," said University of Asia and the Pacific vice president Bernardo M. Villegas in his keynote at the Oct. 26 launch of Western Union Business Solutions (WUBS) at the Manila Polo Club. Western Union has diversified into business-to-business payments in the Philippines, in collaboration with Petnet Inc., which operates in over 3,000 locations composed of banks, pawnshops, business centers, money-changers, supermarkets, and company-owned locations. “The way international commerce is done by small businesses in the Philippines will be changed," said Western Union senior vice vresident for Pacific & Indochina Patricia Riingen, stating that with WUBS “we extend our services beyond [individual] consumers to include cross-border payments and foreign exchange solutions." Riingen said that local businesses can make faster payments, reduce inventory costs and increase the ability to respond clients through faster delivery of products. 24-48 hours vs. 8-10 days “The beauty of our system is that we have we have 150 bank accounts in 30 countries," said Western Union vice vresident for Agent Sales Jonathan Knaus. Knaus explained that a local SME need only pay in pesos to be deposited in a WUBS account here in the Philippines, then Western Union will pay out that sum in the chosen currency through a WUBS account in the country where the beneficiary, such as a supplier, is located. He SAID WUBS transactions take only 24 to 48 hours, versus the eight to ten business days some banks may take to make payment because money deposited goes through a series of banks until it finally ‘arrives’ at the beneficiary’s bank. Petnet president & CEO Lorenzo Ocampo said “Petnet has been offering Western Union Money Transfers for consumers since 1998 and we started out as a small business too. WUBS offers SMEs the flexibility to order and fulfill payments based on their cash flow and inventory requirements." To avail of WUBS, interested SMEs must register with Petnet then they can choose between transacting directly via the online payment platform, or calling Petnet to fulfill the transaction. Registered customers can settle accounts with their suppliers by making payments with draft, account deposit or account to account transfers – in over 140 currencies. Fully compliant with BSP rules Ocampo said one SME proprietor recounted that before WUBS, he had to buy dollars from the Philippine black market – known as the “Binondo Central Bank" – and deposit those dollars in a bank, after which the bank would convert those dollars into yen at a certain transaction rate to pay his Japanese suppliers. In an audio-visual presentation at the WUB launch, customer testimonials were shown. “I own business called Global Beer Exchange. And we’re the exclusive importer and distributor of seven artisan craft breweries from the US and Japan," said Jim Araneta. “We chose Western Union Business Solutions because the rates that were provided to us were very competitive. Aside from that, the process becomes expedited, it became a faster process," he said. “Anytime the suppliers get paid on time, they’re happy," said Craig Stewart, who owns Urban Barn in Vancouver, British Columbia. “They want to do business with you more." — ELR, GMA News