What is multi-currency pricing (MCP): Guide for your business

Key takeaways:

• Multi‑currency pricing (MCP) lets shoppers pay in their local currency, while you settle funds in a configured currency, often like‑for‑like in the original payment currency where supported.

• MCP reduces cart abandonment, improves customer experience, and can save you up to 80% on FX fees vs traditional banking

• Unlike dynamic currency conversion (DCC), MCP lets you set prices up‑front with your own FX quote; DCC adds a provider’s exchange rate and markup at checkout, with card‑scheme disclosure rules.

• Airwallex's MCP feature integrates seamlessly with your checkout, offering like-for-like settlement in 14+ currencies

If you’ve ever sold goods or services outside your home market, you’ve probably run into frustrating issues when it comes to dealing with currencies. 

According to our Cross-Border eCommerce report, 93% of consumers claim that seeing products priced in their local currency impacts their decision to purchase. However, offering this functionality can be complex for businesses. 

And then there’s the fees. Some providers operate as an intermediary between the merchant and their customer, loading on hefty charges when they receive and transfer funds across currencies. 

With Airwallex’s multi-currency pricing (MCP) functionality, we’ve farewelled the intermediary to give your customers the best possible experience, and slash fees. So, could MCP become the MVP of your financial toolkit?

What is multi-currency pricing (MCP)? 

Multi-currency pricing is a strategy that allows businesses to display and sell their products or services in multiple currencies, tailored to the locations of their customers. This approach enables customers to see prices in their local currency. Meanwhile, the business can choose to receive the transaction settlement in their preferred currency.

How does multi-currency pricing (MCP) work? 

The MCP process typically involves three key steps that happen seamlessly in the background.

First, your payment system receives real-time exchange rate information and you decide which currencies to display on your website based on your target markets. This lets you set competitive prices that account for current market rates.

Next, when a customer visits your site, the system detects their location and automatically displays prices in their local currency. Your customer then makes their purchase in their home currency, creating a smooth, localised shopping experience.

Finally, after the transaction settles, the payment platform converts the funds into your preferred currency using the agreed exchange rate. The money then appears in your nominated account, ready for you to use.

Example: Airwallex MCP in action

Let's look at how this works with Airwallex. You receive a quote from our FX system and select the currencies you want to display on your website based on the rates you've received. Your customer makes their purchase in their home currency. After the transaction settles, funds flow into Airwallex's FX engine, converting into your preferred currency before appearing in your nominated account.

What are the benefits of multi-currency pricing (MCP)? 

A great MCP functionality unlocks multiple pathways to growth. Key benefits include reducing currency conversion costs, reducing currency risks, improving customer experience, aiding global expansion, and more.

Cost efficiency

Using a payment platform with competitive FX capabilities helps reduce the costs associated with currency conversions. Platforms that own their international financial infrastructure can offer better exchange rates and lower fees compared to traditional banking methods.

With Airwallex, you can save up to 80% on FX fees compared to traditional banks. Unlike many providers that pass on exorbitant fees to use external rails, we own the international financial infrastructure that facilitates money movement around the world. This means we can tap into our own rails, helping you save and operate more efficiently.

Reduced currency risk

By receiving transaction settlements in your preferred currency, you can better manage your exposure to foreign exchange rate fluctuations. This helps to stabilise your cash flow and makes financial planning more predictable. You know exactly what you'll receive, removing the uncertainty that comes with volatile exchange rates.

An improved customer experience

The painful task of interpreting foreign currency while online shopping is a universal experience, which often leads to cart abandonment. By pricing goods and services in the most suitable currency for customers, you make the purchasing process more familiar to them. This can lead to increased customer satisfaction and higher conversion rates.

Plus, when you offer diverse payment options alongside local currency pricing, you remove even more friction from the checkout process. With Airwallex, you can offer more than 160 payment methods to your customers. With 77% of consumers claiming they are likely to abandon their cart¹

 if their preferred payment method is unavailable, offering their preferred way to pay gives you a huge edge. Visa, Mastercard, Amex, WeChat Pay, GrabPay, Trustly, PayPal—the list goes on.

Global expansion

MCP supports businesses looking to expand internationally. By offering local currency pricing, you make your products and services more accessible and appealing to a global customer base, thereby facilitating growth in new markets. It shows customers you're serious about serving their market.

Operational simplicity

MCP functionality streamlines the process of handling multiple currencies. This reduces the administrative burden on your finance and operations teams, allowing them to focus on other critical aspects of the business. Instead of managing multiple bank accounts in different currencies, you can handle everything through a single platform.

Airwallex's integrations make operations even simpler. Take efficiency one step further with our suite of integrations, including popular accounting platforms like Xero and NetSuite. With your Airwallex data instantly syncing with these platforms, end-of-month reconciliation becomes easier than ever.

Competitive advantage

Providing customers with the option to pay in their local currency can differentiate your business from competitors who may not offer this flexibility. This can improve your brand's reputation and attract more international customers in a crowded market. In cross-border commerce, the businesses that remove friction win.

Multicurrency Pricing vs Dynamic Currency Conversion: what's the difference?

While multi-currency pricing (MCP) and dynamic currency conversion (DCC) both involve currency conversion at checkout, they work very differently.

Multi-currency pricing (MCP)

With MCP, you control the pricing strategy, not the processor. Customers see prices in their local currency from the start of their shopping journey, and you choose the exchange rates and settlement currency. The conversion happens after the transaction at rates you've agreed to in advance, giving you more control over margins and pricing by market.

Dynamic currency conversion (DCC)

DCC offers currency conversion as an option at the point of payment. Customers initially see prices in your home currency, then the card network or payment processor offers conversion at checkout. The processor controls the exchange rate, which often includes significant markups that are much higher than MCP rates.

Why MCP wins

For businesses serious about international expansion, MCP is the clear choice. You get more control over pricing and rates, customers experience transparent pricing from the first click, and fees are typically lower. DCC creates friction at checkout with surprise conversions and less favourable rates, which can lead to cart abandonment.

How does Airwallex's multi-currency pricing work?

Airwallex makes it easy to integrate MCP into your checkout process, giving you control over pricing while minimising currency risk.

• Get a real-time quote Fetch the latest exchange rate from our Quote API for your preferred currencies. Want to display prices in Philippine Pesos (PHP) but receive payments in US Dollars (USD)? Simply get the current USD to PHP rate.

• Lock in your rate Each quote is valid for one hour from the time it's created. During this window, the exchange rate stays locked, protecting you from market fluctuations. You can reuse a valid quote for multiple payment intents within its validity period.

• Set your prices Use the locked rate to calculate and display prices to customers. If you're selling shoes for $15 USD and the rate is 56.18, you can price them at 842.70 PHP or higher to maintain your margin.

• Process payments Customers pay using their preferred payment method in their local currency. Everything flows through the normal checkout process. For Airwallex's settlement guarantees to hold, payments must be captured within 12 hours of creation.

• Receive settlement Airwallex settles you in the original payment currency if it's a configured settlement currency on your account. If the original currency isn't configured, settlement occurs in your default settlement currency. No additional fees are charged for using MCP. Instead, a conversion fee (typically 2–4%) is applied to your shoppers and included in the FX rate when prices are displayed.

• Bonus: Like-for-like settlement Our standout feature lets you receive payments in the same currency customers pay in across 14+ major currencies. No forced conversions, no hidden FX fees. Funds settle directly into your Airwallex multi-currency wallet, giving you flexibility in how and when you convert currencies.

How to boost your revenue with Airwallex Payments

Multi-currency pricing is just one feature of Airwallex's comprehensive payment acceptance solution. When you combine MCP with our other checkout capabilities, you create a payment experience that maximises conversions and revenue.

Accept 160+ payment methods

Give your customers the freedom to pay their way. Airwallex supports over 160 payment methods, including all major card networks (Visa, Mastercard, Amex), digital wallets (Apple Pay, Google Pay, PayPal), and popular local payment methods across Asia, Europe, and beyond. 

Collect payments in 130+ currencies

Expand your global reach by accepting payments in over 130 currencies. Combined with MCP, this means you can sell to customers anywhere in the world while maintaining control over how and when you receive funds. Process payments in 180+ countries and regions, opening doors to markets you might have previously found too complex to serve.

Like-for-like settlement in 14+ currencies

One of Airwallex's most powerful features for Australian businesses is like-for-like settlement. When customers pay in major currencies like USD, EUR, GBP, or AUD, you can receive those funds in the same currency without forced conversions. This eliminates hidden FX fees and gives you control over when to convert currencies based on favorable rates.

Fast settlement times

Speed matters for cash flow. Approximately 95% of Airwallex transactions settle within hours or same day, and around 52% arrive instantly. This is significantly faster than traditional payment processors that can take three to seven days. Faster access to funds means better cash flow management and more flexibility to reinvest in growth.

Seamless eCommerce integrations

Integrate Airwallex Payments with your existing eCommerce platform in minutes. We offer plugins for Shopify, WooCommerce, and other popular platforms, as well as flexible APIs for custom builds. Our straightforward documentation and dedicated support team make implementation smooth, even for businesses without extensive technical resources.

Real-time payment tracking

Monitor every transaction in real time through your Airwallex dashboard. Get instant notifications for successful payments, failed transactions, and refunds. This visibility helps you manage your business more effectively, spot issues quickly, and provide better customer service.

Advanced fraud protection

Protect your business with built-in fraud detection and prevention tools. Our system monitors transactions for suspicious activity, helping you reduce chargebacks and maintain a healthy payment processing relationship. Security features include PCI DSS compliance and 24/7 monitored security controls.

When you combine these features with multi-currency pricing, you create a payment solution that not only accepts global payments but optimises them for conversion, cost efficiency, and operational simplicity. This is how modern businesses compete and win in international markets.

Five easy steps to integrate with Airwallex MCP

Getting started with MCP is easy with Airwallex. Just follow these four straightforward steps to integrate.

1. Get the latest quote from our system to show prices in your preferred currencies. For example, if you want to display prices in Philippine Pesos (PHP) but receive payments in US Dollars (USD), you can fetch the current exchange rate for USD to PHP using our Quote API.

2. Secure your exchange rate for a specific time frame. The longer you lock in the rate, the longer Airwallex will manage the currency risk for you. There are three options available: up to 24 hours; 24–48 hours; or 48–72 hours.

3. Leverage the collected rate to update the prices you display to your consumers. What does this look like? Let's say you're selling a pair of shoes in the Philippines that cost you USD$15. To avoid losing money, you can check the USD to PHP exchange rate for tomorrow's transaction. If the rate is 56.18, you can price the shoes at more than 842.7 PHP (15 * 56.18) to ensure you cover your costs.

4. Process payments with the normal flow. Let the dollars (or whatever currency your customers are paying with) roll in! 

5. Once the payment is settled, you'll get the money in your preferred currency, using the exact rate you got earlier. Back to our shoes example! If you priced the shoes at 900 PHP and someone bought them on June 11, 2022, at 3 PM using a Visa card, you'd receive the money on June 14 (assuming it takes 3 days to process). After the 2.9% card fee, you'd get around $15.56 USD (calculated as 900 PHP / 56.18 exchange rate).

Multi-currency pricing: frequently asked questions

Why should I offer multi-currency online payments?

Offering multi-currency online payments significantly improves your conversion rates and customer satisfaction in international markets. When customers see prices in their local currency, they're more likely to complete their purchase. It also reduces cart abandonment caused by currency confusion and builds trust with international customers. Beyond customer experience, MCP helps you manage currency risk more effectively, access competitive FX rates, and streamline your operations by handling multiple currencies through a single platform.

Do I need a multi-currency business account to accept different currencies as an ecommerce business?

While you don't strictly need a multi-currency business account to accept different currencies, having one makes the process much simpler and more cost-effective. Without a multi-currency account, you'll typically face forced conversions at unfavourable rates and higher fees with traditional banks.

A multi-currency account like the Airwallex Global Account lets you open local accounts in 21 currencies, choose when to convert based on favourable rates, and avoid unnecessary conversion fees. You can receive payments in the currency your customer pays and convert only when it makes sense for your business, potentially accessing market-leading exchange rates with transparent pricing.

How do I set exchange rates with multi-currency pricing?

With Airwallex's MCP, you receive real-time exchange rate quotes from our system. Each quote is valid for one hour from the time it's created, protecting you from market fluctuations while you display prices to customers. You can reuse a valid quote for multiple payment intents within its validity period.

You then set your selling prices based on these quotes, ensuring you maintain your margins regardless of currency movements. The FX rate shown to customers includes a margin to guarantee rate certainty throughout their checkout session, eliminating currency risk during that period.

Sources

1. https://www.airwallex.com/au/blog/ecommerce-statistics

The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]]. This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.