A UK-based SaaS company wants to pay its freelance designer in Brazil. They invoice in GBP, but she wants BRL in her account. Here’s how Rapyd makes that happen in seconds, not weeks.
Multi-currency payment systems are crucial for creating cross-border solutions and integrating into a globalized financial network. Creating payments where funds are collected, or creating payouts where funds are disbursed is a staple feature of Rapyd’s core offering. The ability to use multiple currencies through FX or Foreign Exchange allows merchants across the globe to use a solution that meets their financial needs.
What Are Multi-Curency Payment Systems?
A multi-currency payment system is a network comprising several elements including payment processors, payment gateways, forex exchanges, payment service providers, and banks. All of these elements form a network to facilitate payments that use multiple different currencies.
The key features of a multi-currency payment system include the ability to use different currencies in the same payment or payout. For example, a merchant could create a payout and select USD as the sender currency. But their employee lives in France, and would like to be paid in EUR. So the beneficiary currency would be EUR, and the funds would be converted into EUR via FX or Foreign Exchange.
Payment systems that allow multiple currencies to be used allow a truly globalized system to form. The benefits of using multiple currencies include customers using their local currency, ease of use for cross-border transactions, and using payment and payout methods that are faster and more efficient.
Foreign Exchange (FX) in Fintech
Foreign exchange (FX) is the act of converting one currency to another during a transaction. A payment gateway is used in the conversion process. The latest currency conversions and rates are used.
The fintech industry has helped to revolutionize FX by offering real-time transactions that use different currencies. The overall process has less red tape, and is easier to use when compared to using a more traditional bank or financial institution.
The ability to make settlements using your preferred currency is beneficial, especially when using local bank accounts and banking institutions.
Global Payment APIs
Rapyd offers a flexible and easy to use solution through our global payment APIs. The two main API calls used are Create Payment and Create Payout. Creating payments is under the Collect product offering, while creating payouts is under the Disburse product offering.
Additional elements include a variety of payment method types, payout method types, and supported currencies. Rapyd offers a wide variety of supported currencies for payments, payouts, settlements, and virtual accounts.
For example, your business based in Europe sells merchandise on your online store. A customer from the United States wants to purchase a product from you that costs 370 EUR (Euros). But the customer uses a payment method that only supports USD (U.S. Dollars). You would Create a Payment with FX using the Rapyd API.
You can use hundreds of different payment method types with Rapyd, which include ewallets, bank transfers, bank redirects, cash payments, and card payments. Supported regions include the Americas, APAC, and EMEA. You can use your preferred payment method types with the Rapyd API.
Multi-currency payment systems are a key component of globalized financial networks. They allow the merchant to use multiple different currencies for both payments and payouts. This kind of system can offer the flexibility and ease of use for merchants that operate on a global scale and need cross-border financial solutions. Rapyd is a leader in providing multi-currency payment systems accessible through the Rapyd API. Learn more about Rapyd and integrate with us today. Leave a comment below about your experience using our APIs.