As a business, expanding your horizons and going global is always a lucrative proposition. By accepting payments in multiple currencies, you open up your business to new markets and customers who may not have been able to use your services otherwise. In addition to this, through the use of an FX (Foreign Exchange) banking solution, a business can make use of the benefits of simplified cross border transactions without a constant worry about exchange rates and bank fees.
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What is FX Banking?
FX banking (also known as Forex) is basically just the exchange of one currency to another, with aims to profit from the difference in rates. It can be used for personal and business purposes and typically involves using a bank or other financial institution to complete the transaction. In many ways it can be compared to the stock market depending how it is used, though there are a lot of differences and this should only be considered as a wide use of the system.
Cross-border payments are vital to FX banking and allow businesses to send and receive money in different currencies quickly, the Forex market is open 24/7 and can be used at any hour. Check out this guide on FX banking for much more info.
How is Opening Up to Multiple Currencies Beneficial for the End User?
By opening up to multiple currencies, customers can make payments with the money of their choice. Customers worldwide are more likely to purchase your product or service as they don’t have to worry about exchange rates or bank fees associated with international payments. Additionally, customers will appreciate being able to make payments in their local currency. This can also benefit your all-over brand, as customers will likely appreciate the effort and trust you for making their lives easier.
For business owners, another great benefit of FX banking is that you can have access to a broader supply chain. For example, using a SEPA bank account, you can receive payments in euros from European customers while also receiving prices in dollars and other currencies from customers around the globe. Additionally, a multi currency account Waiting for the live links or IBAN account allows businesses to accept payments from multiple countries at once, saving time and money for the company.
What are the Limitations of Only Accepting One Type of Currency?
Businesses are limited to a specific market by accepting one type of currency. For example, if you’re only selling in dollars, customers from other countries may need help to purchase your goods. This can limit the potential customer base for your business and reduce overall sales. Additionally, when using a single currency, companies need to learn how exchange rates may fluctuate over time and could end up losing money due to the constant changing of currency values. This can also affect the quality of your client’s product or service because of the additional costs associated with exchanging currencies.
In today’s digital age, businesses need to stay on top of the constantly changing digital economy, and FX banking can help them do that. In short, if you’re not offering customers easy ways to pay, exactly how they want to pay – you’re just bound to miss out on heaps of transactions.
Why this Adaptation Doesn’t Have to be a Headache for Business Owners
It may seem overwhelming, complex or just expensive to implement a payment gateway that can handle different currencies. Not to mention the management side of all of the accounts. Luckily though, innovative banks have identified this pain point for businesses and have started to offer services that are designed to streamline this entire process. That means you can get started with FX banking for your company without having to suffer from a headache during the process.
Services like Monneo offer multi-currency IBAN accounts that enable businesses to manage their finances (in multiple currencies) within a single platform. The IBAN by Monneo supports 18 currencies at the moment, meaning businesses can quickly receive payments in any of these currencies and automatically convert them into their preferred currency too.
A particularly strong point on Monneo’s platform is that it also supports 134 outbound currencies, meaning businesses can pay suppliers or employees worldwide without worrying about exchange rates or bank fees. You can enquire about opening an account with Monneo here. The process from start to finish should only take 3-5 business days (during regular periods of trading). We’d urge you to check the application requirements before getting in touch, make sure you have all of the documentation needed to avoid potential delays.
Before You Go – What Exactly are IBAN Accounts Anyway?
The term IBAN stands for International Bank Account Number. It is an internationally recognised way of uniquely and accurately identifying any bank account holder from anywhere in the world. By using Monneo’s multi-currency BANK accounts, businesses can easily manage payments to and from their customers without worrying about inputting incorrect details or currency conversions. This includes AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, NOK, NZD, PLN, SEK, SGD, TRY, USD YEN and ZAR.
Whether you’re looking to expand your business to new markets or make it easier for customers to pay you, a multi-currency banking platform can be the key to unlocking global success, whilst a lot of these currencies may feel unfamiliar to you, it’s all the same once it has been exchanged to your currency of choice, it’s all income and that’s the aim of the game.
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