Whether individuals are traveling for business, relocating for extended periods, or simply shopping online from overseas retailers, handling multiple currencies can save both time and money.
Consumers have grown to expect fast and convenient solutions—especially regarding how they spend and receive money. When a bank or fintech makes it simple to hold multiple currencies in a single account, or even different accounts with different currencies, as well as pay without high foreign transaction fees, it can boost customer satisfaction.
For some, multi-currency solutions are a ‘nice to have,’ but for many, particularly those who travel often, run international businesses, or live abroad, it’s an essential feature that can significantly reduce costs and operational headaches.
What is a multi-currency account?
A multi-currency account is usually held at a bank or non-bank financial institution. It allows a user to spend, receive, and hold multiple currencies at the same time. It allows the user to manage these balances without having to open a new account for each one (unless needs). Once a feature of only international or high-net-worth private banking accounts, multi-currency functionality is a feature in demand as more people transact, travel, and send money between borders.
What’s driving demand for multi-currency accounts?
A key factor in the growth of multi-currency accounts is cross-border trade and e-commerce, where sellers transact with buyers and suppliers around the globe. Almost 800 million people made cross-border transactions from 2023 to 2024.
Whether it’s small businesses expanding on marketplace platforms or larger companies catering to international clientele, holding multiple currencies helps streamline payments without the need for exchange.
Remittances have also played a role in the demand for multi-currency accounts. Remittances are a source of funding for millions of families across the world, as their loved ones send money earned by working abroad. While the majority of these transactions still occur via wire transfer, a growing percentage – around 25% — are made using digital payment services.
Another reason for multi-currency demand is diversified investments and exposure to varying markets. In nations with a fluctuating currency rate, businesses and individuals can hold accounts in both the local currency and U.S. dollars. This versatility allows individuals and businesses to avoid constant conversions, which can chip away at their bottom line through fees or unfavourable exchange rates. The ability to combine these accounts into one service streamlines customer experience and saves time.
How are banks responding?
Large global banks have traditionally relied on correspondent networks, making it possible to move money internationally—albeit sometimes at a slower pace while paying fees. Some newer market entrants have leveraged technology and local licensing strategies to offer what they call a quicker, more affordable cross-border payment service.
One adaption includes the rolling out or enhancing of multi-currency features within product lines. Banks may market debit or credit cards that waive foreign transaction fees, appealing to a new generation of internationally mobile customers. Others could experiment with mobile apps that support multiple wallets, each in a different currency, which automatically convert to local currency at competitive rates.
Why customer experience is key
User experience lies at the heart of any successful multi-currency account offering. People value transparency in fees and exchange rates, smooth digital processes, and swift settlement times. Businesses, meanwhile, may want to simplify their accounting by reducing conversions. Payment providers that streamline every step—from onboarding to foreign exchange—could win more loyalty.
By focusing on convenience, institutions can not only differentiate themselves but also better serve a diverse customer bases. Being able to offer an effective multi-currency service can really set a financial institution apart.
How Pismo can help
For organisations looking to modernize their payment platforms, Pismo offers a cloud-native solution designed to support a wide range of banking and payment functionalities.
From integration through robust APIs to streamlined operational processes, Pismo can positions banks and fintechs to meet rising expectations around multi-currency services.
If you’re thinking about enhancing your multi-currency offerings or exploring new avenues in cross-border finance, let’s talk.
Get in touch with Pismo today.
Sources:
- ‘Unlocking the future: banking on cross-border payment habits’, Visa, 2024
