Online shopping has become incredibly popular over the past few years, and as a result, hundreds of thousands of online shops have opened up to dip into the expanding market.
The average buyer anticipates easily completing online transactions in their local currency. However, this does not imply that you should only use local currency. Supporting different currencies can considerably increase your earnings if you run an online store and want to take it into new markets.
Unfortunately, you must overcome a number of technical and technological barriers before you can begin selling in various currencies.
What’s Multi-Currency Support?
Multi-currency support means that customers can pay for your goods or services in the currency with which they are most comfortable.
Customers from foreign countries are frequently required to pay in USD or EUR rather than their home country’s currency. Many online customers may find this experience upsetting and may even decide not to complete their transaction.
Cross-border purchases are made by 25% of European and 30% of American online shoppers. The percentage is presumably significantly greater than the average for all of eCommerce when it comes to software. Supporting multiple currencies will facilitate international sales as interest in cross-border shopping increases.
Benefits of Having A Multi-Currency Website
Here’s what you can gain by having multiple currencies available on your website.
#1: Eliminates Foreign Transaction Fees
Foreign transaction fees apply to online purchases made by customers from other countries. This may be so off-putting that customers may shop elsewhere for the good or service they want.
When you accept payments in multiple currencies, these foreign transaction fees are avoided, which makes your company much more appealing to potential clients.
Additionally, keep in mind that happy customers often tell their friends and family about your business, which means you could also benefit from effective word-of-mouth promotion.
#2: Increases Customer Loyalty
When your consumer checks their bill, receipt, or shopping cart, and it is presented in their local currency, there is no misinterpretation, no need for them to ask questions, and no unpleasant surprises.
This kind of clarity for your foreign customers can increase their trust in your company and make them feel more at ease when they shop online with you because they know they won’t be taken advantage of.
#3: Lower Chargeback, Refunds, and Cart Abandonment
Multi-currency helps reduce refund and chargeback rates and decrease shopping cart abandonment. For any currencies, you do not set localized pricing; customers will see prices based on live foreign exchange rates.
Customers will value your transparent pricing and the ease with which they may view the price in their selected format’s currency.
#4: Bank Transfer Payments
Allowing your clients to pay with a variety of approved currencies is only one feature of multi-currency eCommerce support.
Allowing your consumers to pay using alternative payment options is another way to increase sales and revenue. For example, many European clients choose to use their online bank accounts to conduct real-time bank transfers for their payments.
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#5: Much More Convenient
While working with multi-currency payment processing, you will receive a payment into a multi-currency account. Administration becomes considerably simpler because everything is in one location, and you don’t have to manage several accounts using different currencies.
Receiving payments in foreign currencies can be a far more efficient and straightforward process for both the business and foreign clients.
#6: Market Differentiation
Accepting payments in foreign currencies can give your business an advantage over rivals in international markets. Customers typically prefer paying for things in their local currency; therefore, they will choose you over any rivals who don’t provide this.
However, in order to compete on an equal footing, you must accept foreign currency payments if your rivals do.
#7: It Enables You to Streamline Your Financial Records
While managing an international business might be exciting, there can be a confusing variety of pitfalls, especially when it comes to maintaining your bookkeeping. The issue may quickly develop if each country you serve has a unique website.
On the other hand, having a single website that accepts payments in all the currencies of the countries where your consumers reside will greatly aid in keeping your financial records organized.
Main Considerations of Accepting International Payments
Despite the benefits of accepting foreign payments, there are a few things to take into account when navigating complex payment and currency systems.
- Speak with your acquirer about the setup of your organization to determine the best course of action to minimize costs and other obstacles. For instance, operating in some nations may require a bank account there, and some countries may have taxes that become a limitation.
- If products have fixed prices, for instance, if a product is listed at £70 GBP for UK consumers and €80 for EU clients, this price point may fluctuate between becoming more or less profitable based on the exchange rate. If this is a common problem, offering dynamic pricing for your products would be worthwhile, where prices are updated regularly to reflect the current exchange rate.
- You may avoid more sophisticated fraud strategies by using solutions that offer services like Address Verification Services, Card Verification Values, and EMV 3DS.
Conclusion
Accepting multiple currencies could benefit your company in a number of ways, including increased sales, a bigger and happier client base, improved financial management, and possibly a competitive edge over your greatest rivals.
Still, make sure to spend some time carefully examining your business, the clients you serve, and your long-term objectives before leaping to accept different currencies.