5 Surprising Ways Multi-Currency Tools Can Save Your Business Money
Multi-currency tools have become more popular nowadays due to the advances made online and throughout digital tools in general.
A lot of people benefit from being able to make cross border payments, whether it’s for the purpose of sending money to family or as a business.
In this guide, we’ll look at five surprising ways multi-currency tools can save your business money.
- Boosts sales and reduces cart abandonment
By allowing international customers to see prices and pay with their local currency, companies are able to build trust, providing a more transparent and seamless shopping experience.
This can often increase conversion rates and reduce the chances of cart abandonment, which often occurs when a customer is dissatisfied with the checkout process. All of the above helps to increase revenue and drive profit for the company.
- Mitigates currency volatility risks
Instead of having to be forced into unfavorable currency conversions with traditional banks, multi-currency accounts allow businesses to strategically hold funds in different currencies.
This allows finance teams to convert funds when exchange rates are most favorable. Hedging tools are also helpful to lock in rates for future transactions, as well as to protect profit margins from market shifts that are often unpredictable.
- Streamlines operational efficiency and reduces admin time
Streamlining operational efficiency is always beneficial and helps to reduce admin time. By managing multiple separate local bank accounts, you’re taking up a lot of time, and this can also lead to a lot of manual errors as a result.
With multi-currency tools, you can consolidate these global transactions into a single platform that usually comes with a unified dashboard. As well as other features that include reporting, compliance tasks, and automating reconciliation.
This often frees up finance teams to conduct better efforts in strategic work, as well as reducing overhead and administrative costs.
- Strengthens supplier relationships and terms
Being able to pay international vendors or contractors within their local currency it’s seen as more professional. It can also lead to better negotiation terms or early payment discounts.
Eliminating delays and unexpected fees can help businesses build trust and more reliable supply chains. This can indirectly lead to cost savings and prevent disruptions within the business.
Being able to strengthen your relationships with suppliers can often have long-term benefits, so it’s worth going the extra mile where you can and making it easier for your suppliers to work with you without the pain points when it comes to payment.
- Avoid double conversion and hidden fees
With traditional banking, it often involves intermediary banks for overseas payments, and each adds fees and markups on the exchange rate. With multi-currency platforms, there are more direct payment rails and transparency in competitive exchange rates.
This allows funds to be held and used in the same currency as they were received. That often avoids costly double conversions as well as hidden charges.
Multi-currency tools certainly can save your business money, so be sure to use them this year and in the future.
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