The Western Union Co.’s ( WU Quick Quote WU - Free Report) Business Solution unit has partnered with Triterras Inc. ( TRIT Quick Quote TRIT - Free Report) . Per the pact, the company’s segment will provide cross-border payment services between traders and lenders on one of the platforms of Triterras named Kratos. Kratos is one of the world’s largest commodity trading and trade finance platforms that connects and enables commodity traders to trade and source capital from lenders directly online. Western Union’s Business Solution is a perfect fit for Kratos, given its fast and reliable technology for the movement of global funds and its expertise in currency risk management. Also, Kratos’ block-chained enabled platform will make cross-border payments easy and efficient for its users. The company will be providing its WU EDGE platform called the Enterprise Digital Global Exchange, which was launched in 2016. It is the company’s business-to-business digital platform that aims at creating a simple virtual trading arena where businesses of all sizes can connect. Kratos is the only non-petroleum commodity trade and trade finance blockchain-enabled platform of scale, serving the sub-$10-million- segment. It benefits both traders and lenders. It provides transformational benefits for physical commodity traders and borrowers, thereby minimizing paperwork, mitigating document errors and fraud plus reducing transaction costs. Its blockchain-powered technology enables faster cycle times, fraud mitigation, improved counterparty discovery, and higher quality analytics and reporting. For lenders, it reduces administration costs, mitigates risk and the risk of fraud, and provides a marketplace of borrowers who are persistently subject to bank-grade anti-money laundering and “know-your-customer” check
We believe, the partnership will aid Western Union’s Business Solution segment, which has been witnessing revenue decline since the past many years except for the year 2019 when it grew 4%. The same was again down 8% during 2020. Revenue declines were the result of softer cross-border trade and the adverse impact of the pandemic on education, travel and tourism as well as small and medium-sized enterprises. The segment is likely to remain under pressure through first-quarter 2021. However, there is a chance of gradual recovery in the remaining part of the year, backed by an improvement in overall cross-border trade.
Shares of this currently Zacks Rank #3 (Hold) company have gained 15% in a year compared with the industry’s growth of 24.4%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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