In today’s increasingly global marketplace, businesses are continually looking for ways to reach new customers and increase their brand visibility across borders. When you offer your services or sell products internationally, you may want to consider a solution for multi-currency payment processing.
What is Multi-Currency Payment Processing?
Several different programs offer multi-currency payment processing, and the features and tools may vary with different program providers. In general, multi-currency payment processing allows you, the merchant, to receive payments in USD for goods priced according to the customer’s currency and location.
This allows for more clarity on the buyer’s side since they can browse through products or services priced in their currency instead of having to calculate conversions from USD. Learn more about multi-currency payment processing.
How Does Multi-Currency Payment Processing Help My Business?
As the merchant, multi-currency payment processing offers far more convenience for accounting and other operational processes including:
- Virtually set pricing for products, services, invoices and more in any currency
- Eliminate the need to do manual conversions with automatic daily exchange rate updates
- Automatic exchange rate reconciliation for fx gains and losses
- Easily modify pricing on open transactions to revalue them for exchange rate fluctuations at the end of your payment periods
- Create individual reports for each type of currency to track your sales in different countries
Can Multi-Currency Payment Processing Increase My Revenue?
When considering a multi-currency payment processing program for your business, it’s critical to find out whether international markets have demand for your products or services.
For many eCommerce markets, it makes a lot of sense to expand into China or Japan, since these markets are the largest in terms of revenue. According to the 2019 Global Ecommerce Market Ranking by eshopworld.com, China has the largest eCommerce market by revenue, at $636.09 billion. The U.S. follows it at $504.58 billion and Japan at $104.04 billion. The top five eCommerce markets for revenue by shoppers are the United States, Norway, the U.K., Denmark, and Austria.
By expanding your business internationally, your revenue options may increase significantly. Not only will multi-currency payment support drive more sales, but you can also make your business more competitive.
How Do I Set Up Multi-Currency Payment Processing?
Before choosing a service for multi-currency payment processing, you should do some research about the different companies and programs offering this service. Also, do some research about your target audience to learn about their shopping habits and preferred methods of payment (the more options you accept, the higher your sales and conversion rate).
Other areas you should consider as you research payment processing services include:
- Location and Business Model: Some multi-currency payment processing companies only support certain countries or business types.
- Currencies: Make sure the service providers support the currencies you need for both processing and settlement.
- Merchant Account Fees: There may be additional fees to process different currencies.
- Checkout Languages: The checkout process is one of the most critical factors for customers as they complete a purchase (or don’t). It helps if your service provider offers multi-language checkout and well-designed user experience for checkout.
