Unlocking Growth: The Undeniable Value of Currency Solutions 

In today's rapidly evolving global marketplace, the landscape of cross-border payments is expanding at an unprecedented rate. 

According to the World Bank, the global cross-border payments market is projected to surpass $250 trillion by 2027, driven by increasing international trade, the rise of eCommerce and the growing demand for seamless digital payment solutions. For merchant acquirers, this surge presents a huge opportunity, if done right. The key to seizing this opportunity lies in leveraging advanced currency solutions that meet the needs of your clients and your clients' customers.

Adopting advanced currency solutions can differentiate your services in a crowded market, improve customer satisfaction and open new revenue streams. Here are three reasons you should consider implementing currency solutions:

1. Currency is the language of commerce

In the global economy, currency is more than just a medium of exchange; it is the language of commerce. Customers prefer to pay in their local currency because it provides clarity and avoids the uncertainties of fluctuating exchange rates and hidden fees. According to Shopify, “92% of shoppers prefer to make purchases on sites that price in their local currency.”  For merchant acquirers, offering the ability for their merchants to accept payments in multiple currencies is essential to meeting the expectations of today's savvy consumers.

When customers see prices in their own currency, they are more likely to complete a purchase. This transparency builds trust and reduces cart abandonment rates, leading to higher conversion rates for merchants as 33% of shoppers will abandon the cart if pricing is not in a familiar currency. By enabling currency solutions, merchant acquirers can help their clients expand their customer base and increase sales.

2. Compete on value, not just cost

The payments industry is becoming increasingly competitive, with low-cost acquiring services threatening to erode profit margins. To stay ahead, merchant acquirers need to shift their focus from competing solely on price to offering value-added solutions that enhance their clients' businesses. Currency solutions represent a powerful value proposition that can help merchant acquirers stand out in the market.

By providing comprehensive currency services, including dynamic currency conversion (DCC), multicurrency pricing (MCP) and dynamic pricing (DP), merchant acquirers can offer more than just basic transaction processing. These solutions enable merchants to provide superior customer experience, manage foreign exchange risk and benefit from additional revenue streams.

Investing in currency solutions not only enhances the value you deliver to clients, but also helps you build stronger, more profitable relationships. As clients experience the benefits of these services, they are more likely to remain loyal and recommend your services to others, driving growth through both retention and referrals.

3. Leverage innovative technology

Technology is at the heart of modern currency solutions. With advancements in technology stacks, it is now possible to offer cloud-native, API-driven products that simplify the delivery of currency services. By leveraging these innovative technologies, merchant acquirers can stay ahead of the curve and capitalize on future trends in delivering foreign exchange (FX) services.

For instance, merchant acquirers now have the flexibility to choose from a variety of treasury FX rate providers to power dynamic currency conversion products. This flexibility enables acquirers to select the most competitive and reliable FX rates for their clients. A prime example is Fiserv's partnership with Lloyds Bank to deliver superior FX rates. Such collaborations demonstrate how technology and strategic partnerships can enhance the quality of currency solutions provided to merchants. Learn more on how partnering with Fiserv can help you deliver innovative FX services. 

Embracing these technologies allows merchant acquirers to meet current demands, while also anticipating and adapting to future innovations. By staying at the forefront of technological advancements, you can continually enhance your currency solutions, delight your clients and maintain a competitive edge in the market.

[1] Cross-border payments | Bank of England

Key benefits of currency solutions

Focusing on and implementing currency solutions offers several key benefits for merchant acquirers:

1. Enhanced customer satisfaction: Providing customers with the ability to pay in their preferred currency improves the purchasing experience and increases conversion rates.
2. New revenue streams: Currency solutions like DCC generate additional income for both merchants and acquirers.
3. Competitive differentiation: Offering advanced currency services sets you apart from low-cost competitors and positions you as a value-driven partner.
4. Technological leadership: Adopting innovative technologies ensures you can meet current needs and stay ahead of future market trends.
5. Stronger client relationships: Delivering value-added solutions fosters loyalty and drives client retention and referrals.

The growing importance of cross-border payments

As the global economy continues to grow and evolve, the importance of cross-border payments will only increase. For merchant acquirers, the key to success lies in embracing advanced currency solutions that meet the needs of their clients and their clients' customers. By focusing on the value of currency solutions, competing on more than just cost and harnessing innovative technology, merchant acquirers can unlock new opportunities, drive revenue growth and thrive in the competitive payments landscape.