Episode 2: The payment platform bridging the FX gap for e-commerce worldwide

Plenty of business leaders dream of scaling globally – but the cross-border payments landscape can be so complex that many find their ambitions stifled before they’ve even begun. This is just one of the challenges facing companies in a post-pandemic world.

E-commerce platforms are fuelling the boom in cross-border transactions, and the interconnectedness of today’s global economy means that foreign exchange (FX) costs affect a number of different sectors, from e-commerce to cross-border trading, and even consulting firms.

A common factor facing all industries is the pitfalls that come with handling international payments. While payments are usually straightforward for local companies who manage domestic transactions in a single currency, it can become complex when it comes to multi-currency transactions across borders. This is mainly due to hidden FX costs and unexpected fees that pop up in a vastly more complex and potentially punitive landscape.

“If you start selling globally, calculations become a lot more complex – not only in obvious ways such as increased logistics and distribution costs but also increased payment processing costs, wire transfers and currency conversion fees,” Sam Coyne, CMO of cross-border payments platform Currenxie, tells Business Reporter.

Sam explains that the market determines the relative value of currency pairs involved in each foreign exchange transaction, influenced by supply and demand, interest rates, economic health and political stability.

“Amid the fluctuations, a live-calculated middle ground between the highest and lowest bids is known as the mid-market rate,” he says. “While the commission charged for each exchange can be transparent, FX providers tend to earn big profits from the difference between the mid-market rate and the rate offered to customers, commonly known as a spread.”

The rate spread on top of this mid-market rate raises the effective costs for a business. Traditionally, payment processors or banks usually do these conversions for you, however, they tend to not be at a favourable rate. “All FX providers will charge a commission for their service, but usually they will also include a less transparent spread on the rate to their benefit,” explains Sam.

The solution? A cost-effective and reliable multi-currency business account that is fast becoming a necessity for multinational businesses.

Virtual business accounts, such as the Global Account offered by Currenxie, are helping businesses collect funds and convert and withdraw money at any time, from anywhere in the world.

In fact, the Hong Kong-headquartered fintech’s cloud-based platform manages the world’s largest virtual bank account network, which currently serves 10 jurisdictions, more than 40 countries and 20 currencies. With virtual bank accounts in foreign countries now a reality, clients can collect payments in the local currency and convert their funds at the mid-market rate offered by Currenxie at a fraction of the time and cost.

This modern payment solution can help international businesses break the geographical and payment barriers that have prevented them from scaling to date.

With a virtual business account, SMEs, entrepreneurs and small businesses can transcend international borders and better accommodate their suppliers and customers worldwide in a completely transparent manner.

Take advantage of this technological advancement and bring your business across borders. Sign up for your free business account today: www.currenxie.com