By Adrienne Fusitua
The world of global commerce is growing at an astounding rate, with new markets opening up around the world. Having the option to offer products and services in multiple countries is an essential part of scaling up operations.
For businesses looking to expand beyond their domestic boundaries, understanding how best to accept payments in different currencies is essential. Multi-currency processing (MCP) enables merchants to quickly and conveniently process payments — no matter what currency they’re coming in — allowing them to gain access to more customers and build trust among prospective buyers by providing payment flexibility.
Here’s 8 reasons why multi-currency processing should become part of your payment strategy for strategic business growth and success.
1. Test new concepts and markets
MCP allows your business to test the market and prove efficacy before making a significant investment. This is especially true if you are a smaller or medium sized business, and lack the resources to commit full-time operations in foreign countries.
2. Mitigate volatile foreign exchange
You can avoid fluctuations in foreign exchange (FX) rates by processing transactions in the local currency but settling in USD. This allows your business to settle risk free in a stable currency.
3. Cost-effective setup
MCP enables you to avoid the costs and complexities of establishing a local entity, opening an office, hiring employees, and navigating local regulations and taxes.
4. Remove FX or cross-border fees for customers
MCP eliminates additional fees for customers, making transactions more attractive. This is especially true for customers who are unfamiliar with exchange rate changes, as they can rely on a stable price when making purchases.
For example, if you were to sell a product for $3,500 and not utilize MCP, your customer has to pay an additional $350 in fees to their issuing bank. This means the total transaction amount would be $3,850.
5. Increase approval rates
By embracing local currency, you can protect your business from being flagged for fraud and experiencing high decline rates. This small adjustment can make a significant impact on your bottom line, providing a sense of stability and peace of mind.
6. Enhance credibility and authority
By embracing local currencies and processing transactions in them, you can show your business’ dedication to a particular market. This not only instills trust and loyalty among customers, but can also enhance the overall reputation of your business.
7. Offer diverse checkout experiences
Offering a versatile range of currency options allows for a flawless customer experience, cutting down on the frustrating occurrence of deserted shopping carts and missed business opportunities.
8. Stay competitive
Implementing multi-currency processing allows your business to remain competitive and up-to-date with industry standards. This is especially important in the current global economy, where customers have more choices than ever before.
Using multi-currency processing to streamline global payments is an essential step for any business seeking to scale in new markets. It can provide clear benefits at multiple levels, from increasing sales and improving customer experiences, to reducing costs and boosting approval rates. By doing so, your business will remain competitive globally regardless of the market challenges or shifts that arise.
If you are a business interested in adopting multi-currency processing — or transitioning to a like-for-like merchant account — contact Nexio. Our team of experts stands ready to assist you in optimizing your payment operations and helping you expand into new markets quickly and efficiently.