In the last fifty years, globalization has spread at a dizzying pace. More and more people are buying products online or overseas, and foreign customers are increasingly likely to visit your website with the explicit intention of making a purchase. Cross-border B2C online sales are set to double over the next five years. Giving those shoppers the ability to choose their currency could be the key to increasing sales. And this is where multi currency payments come into play.
What Is Multicurrency?
The term multi currency refers to processing and settlement operations in more than one currency. Since most customers prefer to pay in cash, multicurrency is an excellent strategy to increase revenue while offering better service. Previously, offering payment options in multiple currencies was quite complex, involving exchange rates, security risks, and manually managing all data through an internal accounting system. However, Today’s technology has eliminated many of these problems, leaving the benefits of multi currency intact.
Why Is Multi Currency So Important?
Customers are more likely to buy if you offer them the option to pay in their currency and choose their payment method. If you aim to increase sales and conquer new markets, then multicurrency is your ideal tool. Here are the main benefits of offering multi currency payment options:
Avoid Transaction Fees
Customers avoid additional costs resulting from currency conversion. If they have to pay additional costs that they didn’t count on, they will end up frustrated and unhappy with your service and probably won’t want to buy from your site again. If you help them avoid these costs, your customers will like you and be more likely to return to your site for future purchases or to recommend you to friends, family, or colleagues.
Trust Your Customers
Buyers are more willing to pay in their local currency as they know exactly how much they have to pay; this helps to avoid misunderstandings, questions, or unpleasant surprises. Clarity ensures a positive experience, which builds trust. Ultimately, belief is one of the customer retention factors determining whether or not they will return to you.
Reducing Cart Abandonments, Refunds, And Chargebacks
Statista says 13% of online shoppers will abandon their purchase if the price is presented in a foreign currency. Giving customers the option to select their cash helps prevent cart abandonment and keeps customers from proceeding to checkout. Also, when customers question the amount they owe or don’t understand their bank statements, they can dispute the charge. This could lead to annoying chargebacks, which, in addition to wasting your time, can also lead to fees or penalties. This, in turn, damages your reputation and your cash flow.
How Multicurrency Works
Here’s a quick and handy example to illustrate how multi-currencies work: Pierre is the owner of a famous pastry shop in Paris. Every day, people from all over the planet cross the threshold of his shop to taste his favorite sweets. Pierre also sells and ships his products all over the world. Jalil, a hotelier from Dubai, loves to pamper his customers and decides to serve them Pierre’s desserts. Jalil buys and sells in US dollars, which is why Pierre creates a quote in USD.
During the operation, Pierre can immediately see the exchange rate: what is the price in USD against EURO? Once Jalil has accepted the quote, Pierre automatically converts the invoice into USD. Subsequently, thanks to his billing software, Pierre can consult the statistics to calculate the revenues of this operation. There is no need to recalculate the price from USD to EUR; its billing tool automatically converts to your default currency, ensuring your stats are always up-to-date.
Then Pierre synchronizes his invoices with his accounting tool. He uses the exchange rate to record the cost and income as soon as the payment arrives. Both parties are happy. For Pierre, there are no substantial differences between selling products to local customers and doing business with Jalil, even if they live seven thousand kilometers away.
How To Offer A Multi Currency Payment To Your Customers
The quickest and easiest way to offer customers multi currency payment options is through billing software that supports this feature. Thanks to it, it is possible to automatically calculate the exchange rates for invoices or estimates in real time; you won’t have to worry about anything. Without this element, multi currency exchanges can be hazardous and a critical wellspring of dissatisfaction. Here’s how the billing software supports multi currency payments:
- Create and view all quotes and invoices in different currencies.
- Convert currencies for product lines in your invoice.
- Set different exchange rates than the default ones.
- Create invoices or credit notes from quotes using a foreign currency.
- Maintain a proper overview of your income, even if the invoices are in other currencies.
- Synchronize invoices with your accounting tool in the appropriate coins.
Teamleader, the all-in-one tool for CRM, project management, and invoicing, offers your customers the possibility to pay in their currency without worrying. In turn, invoices and credit notes will be created without difficulty and without losing sight of your income’s big picture.
