Payment infrastructure provider Mangopay has recently launched an FX (foreign exchange) solution aimed at revolutionizing how online platforms handle currency conversions in cross-border transactions. This new solution brings more transparency and control to the process, empowering platforms to explore new revenue avenues, offer localized payment experiences to users, and gain better control over their treasury operations.
Transparency and control
One of the main objectives of Mangopay’s FX solution is to bring more transparency and control to the intricate world of currency conversions in cross-border transactions. By doing so, it enables platforms to have a clearer understanding of the exchange rates and fees involved, allowing for more informed decision-making. Additionally, platforms can take advantage of real-time exchange rates through the Spot FX feature, ensuring immediate and accurate currency conversion.
Empowering online platforms
Through the FX solution, Mangopay aims to empower online platforms by giving them the necessary tools to explore new revenue avenues and enhance their international growth. By offering localized payment experiences to users, platforms can cater to different markets and increase customer satisfaction. Moreover, gaining better control over treasury operations allows platforms to manage their finances more effectively, reducing costs, and optimizing revenue streams.
Versatile and adaptable strategy
The end-to-end FX solution offered by Mangopay allows online platforms to construct a versatile and adaptable cross-border strategy. This means that platforms can customize their approach based on their specific needs and goals. The FX solution provides the flexibility to modify strategies as market conditions or business requirements change, ensuring that platforms can effectively navigate the complex world of cross-border transactions.
Key features of the FX solution
Mangopay’s FX solution encompasses several key features that enhance the cross-border capabilities of online platforms. The Spot FX feature enables platforms to access real-time exchange rates, ensuring immediate and accurate currency conversion. This feature eliminates the guesswork associated with volatile exchange rates, providing platforms with more control and reducing the risk of losses. Additionally, the Guaranteed FX feature allows platforms to briefly lock in rates, mitigating the risk associated with currency fluctuations and protecting the platform from unexpected financial losses.
Benefits for Platforms and Users
By harnessing the capabilities of Spot or Guaranteed FX, online platforms can provide localized buying experiences that reduce checkout abandonment rates. Many customers are deterred by unclear or fluctuating exchange rates, leading to abandoned transactions. The FX solution removes this uncertainty, instilling confidence in customers and ultimately boosting platform revenues. Moreover, the FX solution enables platforms to have better control over their treasury and liquidity management, leading to improved financial stability and operational efficiency. Lastly, by offering fund collection and conversion in multiple currencies, platforms can cater to a global customer base and expand their reach significantly.
Insights from the CFO Survey
The development of the FX solution by Mangopay aligns with the findings of a recent survey involving CFOs and treasurers. The survey revealed that 77% of CFOs in the EMEA region experienced reduced earnings due to avoidable FX risk over the previous two years. This survey highlights the crucial need for more transparent and efficient solutions like Mangopay’s FX offering, which can help mitigate the risks associated with currency fluctuations and ultimately protect the financial health of online platforms.
Strengthening payout network
In addition to the FX solution, Mangopay is also working on strengthening its payout network. Over the coming months, the company aims to facilitate faster and more cost-effective global payouts in over 60 currencies, with local settlement available in more than 20 currencies. This expansion of the payout network will further support online platforms in their international growth efforts, providing them with a seamless and efficient means of conducting cross-border transactions.
Statement from the Chief Product Officer
Kirk Donohoe, the Chief Product Officer at Mangopay, expressed his enthusiasm for the new FX solution, stating, “Our FX solution completely removes the friction associated with traditional currency conversions, providing the flexibility to easily manage cross-border payment flows.” Donohoe further emphasized the importance of enabling platforms to expand globally and support their international growth, highlighting the value that the FX solution brings to the platforms MangoPay serves.
Mangopay’s introduction of the FX solution marks a significant step forward in enhancing cross-border capabilities for online platforms. The solution’s focus on transparency and control empowers platforms to explore new revenue avenues, offer localized payment experiences, and gain better control over their treasury operations. By embracing the FX solution, online platforms can optimize their cross-border strategies, improve customer experiences, and expand their global footprint. With the strengthening of Mangopay’s payout network, these platforms will also benefit from faster and more cost-effective global payouts. The future looks bright for online platforms seeking to tap into international markets and drive global growth with the support of MangoPay’s innovative FX solution.