Benefits of Multi-Currency Payment in Global Businesses

As the globalization of industries continues to advance, businesses engaging in commerce or trade with global partners and outsourcing workers from many parts of the world have become commonplace. However, as one can imagine, these initiatives come with a number of challenges. One of which is money transfers or payment processing in different local currencies. Thankfully, multi-currency payment has become more accessible today than ever before. 

If your business is aiming to expand globally sooner or later, multi-currency payment can bring about a number of benefits to you as well as your international partners, customers, and workforce. In this post, we will share more about what multi-currency payment is and why you should utilize this technology if you want to succeed in your global ventures. Let’s jump right into it. 

What Is Multi-Currency Payment? 

As the term suggests, multi-currency payment refers to the process of sending payments in different local currencies. When a sender makes a payment in a multi-currency payment system, the system automatically converts the amount to the local currency of the receiver at the prevailing exchange rate. This enables the receiver to receive their funds in their local currency without much hassle. 

How to Make Multi-Currency Payments

The process of making multi-currency payments varies depending on the payment platform. Nevertheless, here are the general steps that you will have to take in order to complete cross-border money transfers. 

Typically, the multi-currency payment process starts with selecting your and the receiver’s domestic currency. After that, you’ll have to input the amount of money you want to send. Once the amount is entered, the payment gateway will then calculate and display the converted amount in the selected receiver’s currency. The page may also show the additional rates and fees set by the merchant or payment platform. Make sure to review the breakdown of the costs for your payment before proceeding.

After you’ve confirmed that all costs are accurate, choose your preferred payment method and enter the payment details of the receiver. Finally, submit all the details and complete the payment. You should be able to receive a confirmation message on the platform, your email, or both when the money has been successfully sent.

Benefits of Multi-Currency Payment in Global Businesses

Despite the challenges provoked by the current economic uncertainty, many organizations and business leaders in various industries are seeking to expand their businesses globally. For instance, 69% of IT leaders report their organization plans to expand in the next 12 months, as per the Equinix 2023 Global Tech Trends Survey. 

Along with the expansion of many businesses, the utilization of multi-currency payments has also become more common. From sending payments to suppliers to processing payrolls to staff, this technology comes with multiple advantages. Below, we discuss the benefits of multi-currency payment in international businesses in more detail.  

1. Ease of Use and Convenience

Multi-currency payment allows you to send money right from your computers, laptops, and smartphones with just a few steps. Depending on the payment platform, you may need to download an app, access a website, or subscribe to a paid service. Once you’ve accessed the platform, generally, all you need to do is input the desired amount to transfer in your local currency and the receiver’s details. After that, you’ll have to wait for the system to convert the amount and complete the payment.

2. Improved Customer Experience 

Part of providing quality customer service, particularly in the e-commerce field, is processing payments faster and easier. Multi-currency payment systems provide exactly that. With this technology, customers or clients can easily send payments for products or services no matter where they are in the world as long as they have a working device connected to the internet. 

3. Enhanced Payroll Process

Did you know that the global outsourcing market has reached $261.9 billion in 2022 and is still expected to grow further at an annual rate of 9.4% by 2030? Multi-currency payment ensures that your international staff receives their salary hassle-free in their local currency. This not only allows them to receive their salary conveniently but can also help build their job security and trust in you as their employer.

4. Open Disclosure of Conversion and Transfer Fees 

Each multi-currency payment transaction comes with a precise breakdown of the conversion amount and money transfer-related costs. By having this data, senders can track their costs and avoid confusion, particularly on the fast-changing conversion rates. Similarly, receivers can have a copy of the transaction details, which ensures transparency and accountability. 

5. Lower Transaction Costs and Foreign Exchange Fees

In case you missed it, businesses are said to expect to save 20 to 30% annually with a freelancer, even if they pay them higher hourly rates. This is probably one of the reasons why outsourcing globally has become more practical for more and more businesses. However, this means that there is an increased need to send cross-border payments, which can be expensive through conventional banks. 

Although multi-currency payment platforms are not built equal, they are generally cheaper to use. First of all, these systems require no minimum account balance and only charge relatively cheaper transaction fees compared to banks. They also offer more competitive rates for forex conversions.

6. Easier Accounting and Expense Management 

End-of-month or annual accounting is simpler with a multi-currency payment platform as it provides a centralized medium for all forex transactions. All the data necessary for your financial accounts are already in one place, making accounting and expense management easier and faster. This also ensures that the data are accurate, preventing any inaccuracies that may cause confusion within your organization. 

7. Expanded Global Reach 

With the benefits of multi-currency payment mentioned, it is safe to say that expanding businesses internationally is now more feasible and affordable. Not only does it enable a more convenient, transparent, and secured payment process, but also prevents confusion when it comes to ever-fluctuating conversion rates. It also offers lower transaction and conversion fees, which is advantageous for thriving businesses. 

Pay Your Staff in Their Local Currencies With StaffConnect 

Are you providing your international employees with accessible options for receiving their salaries? If you haven’t yet, you may want to take a moment to hear about StaffConnect’s multi-currency payment feature, enabled through XTRM. 

StaffConnect is a business management software not just for managing your business operations and staff but also for handling multiple currencies. With our all-in-one app, you can pay your international staff in their local currencies in just a few steps. Our app’s multi-currency feature enables you to save time and costs so you can focus on more critical aspects of your business. 

If you are still uncertain whether StaffConnect is fit for your business or not, don’t hesitate to book your free demo today and experience how our app can help you in your payroll processing and make a difference in your business and staff management.