While global marketplaces and platforms continue to expand, efficient cross-border growth remains a challenge. Dealing with multi-currency payments, currency conversions, and managing treasury operations while keeping costs in check is an ongoing struggle. This is accompanied by complexity in cross-border flows - lacking transparency, efficiency, and control.
Mangopay's FX suite aims to tackle these challenges by making cross-border payments efficient with end-to-end FX capabilities.
Managing sellers, buyers, and treasury operations on a global scale while building local experiences is key to growth. This requires flexibility and accuracy to ensure sellers receive their funds fast, while buyers complete transactions in currencies of their choice.
Simultaneously, global platforms accepting and paying out in multiple currencies need to ensure they are managing multiple currency flows. This involves complying with local regulatory standards and handling FX adjustments accurately.
Cross-border payments often involve a web of intermediaries and correspondent networks that prevent transparency and add to hidden costs and delays. Buyers are often blindsided by additional charges imposed by intermediary banks, currency conversion fees, and other undisclosed costs. It's important for customers to see prices in local currencies to prevent drop-offs, while sellers need clarity on FX rates for accurate profit calculations. Moreover, platforms often struggle with the lack of control over cross-border flows with low transparency in where FX is applied, how much and by which intermediary.
The lack of transparency also extends to processing times, with transactions taking longer than expected due to the involvement of multiple intermediaries. This delay not only affects the speed of payment operations but also leads to uncertainties in financial reporting.
Global platforms need to prioritize their FX strategy to drive cross-border success. The struggle to quantify and mitigate costs in cross-border payments is a common challenge for platforms distruping effective planning and budgeting. Moreover, the lack of clear visibility into transaction costs can lead to unexpected financial hits.
From the user's perspective, the volatility in FX rates and additional costs create mismatches between the amount sent and received, impacting cash flow predictability and adding friction in seller experiences. A well-defined FX strategy not only addresses cost optimisations but also ensures a smooth use experience for those involved in cross-border transactions.
Global platforms collect, store, payout and manage different currencies at all times. Each of these will have to be reconciled correctly and accurately while ensuring also the management of treasury and liquidity needs from incoming funds.
The lack of robust payment infrastructures often leads to fragmentation and reliance on multiple partners, resulting in reconciliation challenges and a lack of control over cross-border flows. Without a standardized interface to connect different systems, platforms are often forced to navigate disjointed processes and multiple service providers. This not only hampers speed but also increases the risk of errors and delays in cross-border transactions.
We understand that flexibility is the cornerstone of a successful FX strategy. Mangopay’s FX suite leverages our e-wallet ecosystem to ensure platforms are able to use e-wallets to collect, hold, convert and manage different currencies all in a single infrastructure. With multi-currency e-wallets, FX is not confined to a specific point of pay-in or payout, equipping platforms with the flexibility to leverage FX at any stage in the payment flow.
Monetise cross-border revenue with local payment experiences
Achieving success across borders goes beyond global expansion—it's about tailoring strategies to local dynamics to drive cross-border growth. Leverage dynamic multi-currency pricing to reduce checkout churn and boost conversions. This enables buyers to browse in their selected local currencies, while sellers receive the exact expected funds in the currencies of their choice. Additionally, leverage FX to add markups and margins to drive monetization with a focus on customer value so that you can truly benefit from your global expansion.
Combining operational efficiency with robust financial resilience, Mangopay's end-to-end FX suite is tailored for global platforms and marketplaces. By reducing reliance on external integrations and streamlining payment experiences, it enables real-time conversion of platform funds through built-in FX capabilities. This not only enhances control and efficiency in treasury operations but also facilitates seamless reconciliation of multi-currency payments. With this level of control and flexibility, we enable global platforms to bring efficiency in payment operations while maintaining a firm grip on treasury and financial flows.
Transparency in global payments is not only a matter of trust and credibility for buyers and sellers but also a means to ensure that platforms and marketplaces are equipped with information to make informed financial decisions. Our FX suite addresses this challenge by offering a comprehensive view of currency exchange rates, transaction fees, and other associated costs. By providing this information in a clear and accessible manner, we empower businesses and individuals to make well-informed decisions about their cross-border transactions.
With Mangopay's FX Suite, platforms have the flexibility to choose the solution that best aligns with their specific goals and preferences, all backed by our commitment to transparency, control and flexibility.
Convert on the spot: Access real-time exchange rates through our API through Spot FX, ideal for immediate currency exchanges between e-wallets.
Convert with rate lock: With Guaranteed FX lock in FX rates for a brief period and fulfill quotes without any obligation.
Whether you need the immediacy of Spot FX or the stability against exchange rate fluctuations offered by Guaranteed FX, we have the tools to empower global platforms and marketplaces with the tools they need to succeed in the cross-border space.
Explore this guide for insights into challenges faced by global marketplaces and platforms, along with practical strategies to maximize cross-border revenue.
Looking for a smart way to optimise FX and cross-border payments? Get in touch with us.