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Custom House (global payments)
Encyclopedia
Custom House, a Western Union Company, is a foreign exchange and global payments provider based in Victoria
, BC
, Canada
. Operating more than 80 offices in seven countries, Custom House has grown to become North America’s largest independent foreign exchange
dealer, handling more than $15 billion in transactions each year for more than 50,000 clients worldwide. Custom House provides a variety of foreign exchange services for businesses and individuals, including wire transfer
s, foreign currency drafts, and forward exchange contracts.
Custom House was a founding member of the Canadian Foreign Exchange Dealers Association (CFEDA) in 19974, and is the official foreign exchange provider of the PGA Tour
.
. The company began as a currency exchange
kiosk with 600 square feet (55.7 m²) of retail space in Victoria’s old waterfront customs house. Gustavson expected the kiosk to do $35,000 in tourist currency exchanges in a year, but by offering “better-than-bank exchange rates”, that target was reached in merely two months.1
In 1993, Custom House opened its first corporate foreign exchange office, and began shifting its focus to its corporate clients. The company began expanding across Western Canada
, and in 1995 began opening offices in Ontario
.
Custom House began its US operations in 1997, opening its first non-Canadian office in Seattle. In 2000, the company moved into the Asia-Pacific market with its office in Sydney
, Australia
, and expanded to Auckland
, New Zealand
in 2002. Custom House launched online platforms for international transactions in 2000 (for retail clients) and 2003 (for business clients).
In 2003, a new Senior Vice President named Ian Taylor was hired. Ian came from Toronto, having formerly worked with The Canadian Security Institute.
In 2004, as it expanded its operations into the UK, the company was renamed Custom House Global Foreign Exchange. The company would go on to expand its operations into the UK (2004) Singapore
(2005) and Italy
(2005).
In 2006, Custom House was recognized as a Platinum Club member of Canada’s 50 Best Managed Companies, recognizing sustained “excellence and leadership in all areas of business practices” for at least six consecutive years. “Global Foreign Exchange” was dropped from the company name, as Custom House reinvented itself as a “global payments” company, rather than a foreign exchange dealer.
In 2007, Gustavson relinquished his role as president, focusing on his position as CEO. Peter Ciceri, former CEO of Compaq Canada Inc., was hired as president. This move was intended to allow Gustavson to focus on strategy, while Ciceri focuses on the day-to-day operations of the company.2 Gustavson would eventually become Chairman of Custom House before relinquishing his role completely with the company's sale in 2009.
In May of 2009, Western Union
announced their intention to acquire Custom House from Gustavson. The deal closed in September 2009, with Western Union purchasing Custom House for $370 million USD. Its acquisition led the company to be officially renamed "Custom House, A Western Union Company."
Victoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
, BC
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. Operating more than 80 offices in seven countries, Custom House has grown to become North America’s largest independent foreign exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
dealer, handling more than $15 billion in transactions each year for more than 50,000 clients worldwide. Custom House provides a variety of foreign exchange services for businesses and individuals, including wire transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
s, foreign currency drafts, and forward exchange contracts.
Custom House was a founding member of the Canadian Foreign Exchange Dealers Association (CFEDA) in 19974, and is the official foreign exchange provider of the PGA Tour
PGA Tour
The PGA Tour is the organizer of the main men's professional golf tours in the United States and North America...
.
History
Custom House Currency Exchange was founded in 1992 by Peter Gustavson, a chartered accountant from WinnipegWinnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
. The company began as a currency exchange
Currency exchange
Currency exchange can refer to:* Bureau de change* Foreign exchange market...
kiosk with 600 square feet (55.7 m²) of retail space in Victoria’s old waterfront customs house. Gustavson expected the kiosk to do $35,000 in tourist currency exchanges in a year, but by offering “better-than-bank exchange rates”, that target was reached in merely two months.1
In 1993, Custom House opened its first corporate foreign exchange office, and began shifting its focus to its corporate clients. The company began expanding across Western Canada
Western Canada
Western Canada, also referred to as the Western provinces and commonly as the West, is a region of Canada that includes the four provinces west of the province of Ontario.- Provinces :...
, and in 1995 began opening offices in Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
.
Custom House began its US operations in 1997, opening its first non-Canadian office in Seattle. In 2000, the company moved into the Asia-Pacific market with its office in Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, and expanded to Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
in 2002. Custom House launched online platforms for international transactions in 2000 (for retail clients) and 2003 (for business clients).
In 2003, a new Senior Vice President named Ian Taylor was hired. Ian came from Toronto, having formerly worked with The Canadian Security Institute.
In 2004, as it expanded its operations into the UK, the company was renamed Custom House Global Foreign Exchange. The company would go on to expand its operations into the UK (2004) Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
(2005) and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
(2005).
In 2006, Custom House was recognized as a Platinum Club member of Canada’s 50 Best Managed Companies, recognizing sustained “excellence and leadership in all areas of business practices” for at least six consecutive years. “Global Foreign Exchange” was dropped from the company name, as Custom House reinvented itself as a “global payments” company, rather than a foreign exchange dealer.
In 2007, Gustavson relinquished his role as president, focusing on his position as CEO. Peter Ciceri, former CEO of Compaq Canada Inc., was hired as president. This move was intended to allow Gustavson to focus on strategy, while Ciceri focuses on the day-to-day operations of the company.2 Gustavson would eventually become Chairman of Custom House before relinquishing his role completely with the company's sale in 2009.
In May of 2009, Western Union
Western Union
The Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
announced their intention to acquire Custom House from Gustavson. The deal closed in September 2009, with Western Union purchasing Custom House for $370 million USD. Its acquisition led the company to be officially renamed "Custom House, A Western Union Company."