UK-based Shieldpay has partnered with Western Union Business Solutions (WUBS) to implement Foreign Exchange capabilities on international transactions. Shieldpay’s users stand to benefit from this partnership by being given the ability to lock in currency rates whenever they first receive a foreign currency.

The end-goal is to mitigate the effects of Foreign Exchange fluctuations. Shieldpay’s online payment protection system relies on verification and secure holding of funds. The system helps businesses remain compliant with local regulations while offering protection against payment fraud.

Recent Western Union activity Western Union has also teamed up with card issuing platform Marqeta in June 2022 and integrated its real-time multi-currency digital wallet and digital banking platform. Shortly after, the company has also integrated Germany-based cloud banking platform Mambu in an effort to expand its portfolio of banking services and products. WUBS’ global network ensures Foreign Exchange services in more than 140 currencies and can currently receive funds in more than 40 countries.

Managing the unpredictability of foreign exchange rates According to a Credit Suisse FX Survey from 2021, financial market participants have varying expectations regarding the initial rate hikes of the Federal Reserve Bank (Fed) and the European Central Bank (ECB). Responses are based on commentary from board members and the latest inflation data. Within the context of potentially unexpected currency market movements prompted by interest rate differentials, companies should carefully consider hedging their foreign exchange risks.

Exchange rate fluctuations are very challenging to predict using economic models. Identifying which variables (if any) can help predict these fluctuations is even more difficult. The unpredictability of foreign exchange rates can be particularly detrimental to high-value transactions, although it can affect business transactions of all sizes.

These include foreign mortgage payments, foreign investments, and the purchase of raw materials using different currencies. .