Everything you need to know about multi-currency payment gateway

Global transactions have become the cornerstone of today's economy. The growth of international e-commerce and the ease of accessing global markets have increased cross-border transactions. Businesses are no longer confined to their domestic markets; they are tapping into global opportunities and reaching customers from different parts of the world.

The demand for efficient and seamless payment solutions has increased as the world becomes more connected. This is where multi-currency payment gateways come into play. These gateways facilitate transactions in various currencies, making it easier for businesses to operate globally.

It's one thing to expand a business globally and another to manage payments. Businesses are often plagued with the technical know-how of accepting payments in multiple currencies and payment methods peculiar to each customer globally. If you’re a business owner battling with this, no worries. This article will provide in-depth resources on all you need to know about multi-currency payment gateways and how to leverage them to scale your business beyond borders.

What is a multi-currency payment gateway?

Payment gateways enable online payments—better yet, they’re the channels through which online payment is made possible. A payment gateway is a portal that allows customers to check out after adding items to their cart while shopping online. The customer provides their card details for authorisation and approval, and the gateway takes payments, usually in the customer's local currency.

With a multi-currency payment gateway, customers can pay on a site using their local payment methods and currencies. Merchants will receive the equivalent payout in their preferred currency. For example, a fashion retailer in the UK can collect payments from Nigeria in naira while they get the equivalent in pounds. This is why businesses expanding into global markets adopt multi-currency payment gateways to give customers more flexibility and avoid losing out in the global economy. With the right multi-currency payment gateway, you can expand your business.

Let’s look at Spoynt, a fast-growing fintech disruptor headquartered in the United Kingdom with teams in Estonia, Azerbaijan, Switzerland, Ukraine, and Turkey, to see how multi-currency facilitates global transactions. Spoynt needed a payment provider to enable/make African payment infrastructure available to their merchants looking to receive payments from customers in Africa and expand their reach within Africa. Spoynt partnered with Klasha to integrate Klasha Pay, a multi-currency payment gateway that enables global merchants to capture payments in local African currencies.

With Klasha Pay, Spoynt has unlocked six African countries and over ten payment methods for its merchants, helping over 50% penetrate Africa easily.

How does a multi-currency payment gateway work?

It's no longer news that the best shopping experience comprises personalisation and convenience. A multi-currency payment gateway allows you to provide your overseas customers with both. These payment gateways enable your online store to process payments in your customer's currency, regardless of their location in the world.

It doesn't stop there. It removes the complexities of foreign exchange, conversion fees, and banking regulations, simplifying online shopping for end-users and merchants.

Here's how a multi-currency payment gateway processes payments:

• Customers are redirected from the checkout page to the payment gateway to enter their payment details.

• The payment gateway sends these details to the appropriate payment processor, usually your bank.

• The bank routes the authorisation details through the correct payment network.

• Funds are deposited into your merchant account in the preselected currency during settlement.

• Shoppers choose their language and currency preferences at purchase, automatically converted to your preferred currency for settlement.

How to choose and integrate a multi-currency payment gateway

With the right multi-currency payment gateway, you can expand your business to cover a larger market size and reach. Knowing what to look for when choosing a multi-currency payment gateway is the game changer because the one you eventually select determines your customers' experiences.

Here are some things to consider when choosing a multi-currency payment gateway.

Currency exchange: Foreign exchange (FX) rates fluctuate constantly. The rate available in the morning might not be the same by the evening. Consequently, merchants and customers often struggle with what is acceptable between payment and settlement. This is known as FX risk, and it can significantly impact billing.

A good multi-currency payment provider enables merchants to hedge against this risk by fixing rates until payment and settlement are completed. Some providers even use the day's rates to power transactions. Features like these help stabilise prices and provide a better experience for merchants and customers.

Available currencies: A good multi-currency payment provider should have all the currencies you or your customers need. Before integration, it's important to review the provider's currency options on their platform. If they don't have all the payment and settlement currencies your business needs, you may be unable to leverage them to their full potential. 

For instance, if you're expanding into Africa and want to capture payments in local African currencies and get payouts in USD, EUR, GBP or other major currencies, a multi-currency payment gateway like Klasha Pay can holistically fulfil your business needs.

Integration: Getting the best multi-currency payment gateway depends on your business needs. Regardless of your choice, it should be able to integrate easily with your existing systems like your website, mobile app, or e-commerce platforms. It shouldn't require so much effort and dependability to set up.

Fraud: Ensure you verify that your chosen multi-currency payment gateway meets all security and regulatory requirements before signing up with any provider. A good multi-currency payment gateway has built-in fraud protection and detection tools and features such as encryption, tokenisation, and advanced fraud detection algorithms, ensuring that transactions are secure and trustworthy.

Expand into Africa with Klasha

Africa is becoming the fastest-growing emerging market, providing many opportunities for investors and businesses. As a result, many companies are expanding and establishing footholds on the continent.

Klasha, a global cross-border payment company, is building a platform and APIs to facilitate money movement to and from Africa. Klasha enables global merchants to accept payments from African customers in local currencies and payment methods while they receive equivalent payouts in USD, EUR, GBP, and other major currencies.

If you're a global business expanding into Africa or already own an e-commerce store on platforms like Magento, Shopify, or WooCommerce, consider integrating Klasha Pay to capture payments in Africa and scale your business.