What is a multi-currency account? Growth benefits for business

Key takeaways: 

• Multi-currency accounts allow you to receive, hold, and send funds in different currencies, allowing you to do business anywhere in the world. 

• Airwallex’s Global Accounts provide access to local account details around the world so you can send and receive money quickly anywhere you operate. 

• Multi-currency accounts lessen the need for currency conversions, reducing fees.

The global volume of cross-border payments is increasing by about 5% annually. Business-to-business transactions make up the lion’s share, followed by consumer-to-business transactions such as cross-border eCommerce. 

With a multi-currency account, your business can receive and send payments in multiple currencies, allowing you to transfer money faster and more efficiently. As your business grows, a multi-currency account becomes more important as you expand into new markets. 

Below, we explore how multi-currency accounts work and the key benefits for multinational businesses. 

What is a multi-currency account?

Multi‑currency support allows US businesses to receive, hold, convert, and spend payments in multiple global currencies – all within one platform – so they can collect in EUR or GBP and use or convert to USD without mandatory conversions or hidden FX fees.

Some fintechs offer this capability by allowing you to open multiple local currency accounts within one business account. For example, you could open a USD currency account, a GBP currency account, and a JPY currency account on one platform.

These local accounts come with local account details, which lets you make faster and cheaper transactions since payments would be processed via the domestic payment infrastructure. 

Multi-currency accounts allow you to accept and hold different currencies. You can pay out from the same balances, helping you avoid foreign currency conversion fees that are standard in other international payment methods. Plus, you can skip intermediary banks that add time and costs to the process. 

How do multi-currency accounts work for businesses?

A multi-currency account allows you to hold multiple currencies in a single primary account, providing access to various currencies. You can convert between currencies at real-time exchange rates, send and receive payments in local currencies, and benefit from lower transaction costs. 

Meanwhile, some financial service providers offer local currency accounts that you can open in multiple locations and manage within a single wallet. These local currency accounts provide local banking details in the countries you operate or transact in, and each local bank account number lets you send, receive, and keep foreign currencies via local rails. 

With Airwallex, you can hold and exchange over 20 currencies, including USD, EUR, and GBP, at interbank rates. You may also receive local bank details (routing, account numbers) to accept USD and other currencies via domestic rails.

Multi-currency account: benefits and considerations

Multi-currency accounts offer several benefits for growing companies, including:

• Quicker transfer times since multi-currency account providers may have partnerships with local banks and financial institutions 

• Lower transaction costs with better exchange rates and lower fees for currency conversion than banks

• Streamlined financial operations since you can access multiple currencies on one platform. 

There’s much to love about multi-currency accounts, but they also have disadvantages. Multi-currency accounts don’t often come with specific local account details, such as a local bank sort code or routing number, which are typically required for certain types of local transactions. Instead, they usually offer a single account number for international use. This means that you could still be exposed to currency conversion and transfer fees depending on your provider. 

What’s unique about Airwallex’s Global Accounts is that it gives you the added benefit of allowing multi-currency management on a single platform instead of managing each local account individually. Because you can collect money in local currencies, you can also pay out in those currencies. Not only does this help you minimise unnecessary cross-border fees, it also helps speed up your transfers since you’re able to leverage domestic payment rails. 

How to compare multi-currency account providers

Multi-currency accounts help you do business anywhere in the world, but how do you choose among all the cross-border providers available? 

There are a few key features to compare, including:

• The number of currencies a user can have can change how your global business operates.

• Fees and exchange rates can affect your costs, and you should look for a provider that helps you reduce costs 

• The speed of processing will vary depending on whether they leverage local infrastructure or via banking partnerships

As you compare business account providers and check out demos, don’t forget to consider your future goals. While you might only operate in a few countries now, you’ll benefit from an all-in-one solution like Airwallex that can support continued international growth. Apart from the ability to collect, manage, and move money globally, our multi-currency ability also lets you control and track your international business expenses and accept payments from your international customer base. 

How to open a multi-currency account

Opening multi-currency accounts is simple. 

1. Choose a provider like Airwallex and submit know-your-customer (KYC) documents to open a Business Account

2. Open a multi-currency account for each currency you transact in. 

3. Receive, keep, and transact money in that local currency. 

As you grow, you can continue to open multi-currency accounts in new countries to support operations. It only takes a few clicks.

Operate anywhere with fast, cost-effective multi-currency accounts

Modern technology has made the world much smaller than it was before. Your international business can easily convert and send money to global suppliers and employees within hours – often instantly – using multi-currency accounts.

The best international finance solutions let you do it all in one place. Sign up for an Airwallex Business Account to open Global Accounts and make cross-border payments in multiple currencies quickly and affordably.

Frequently asked questions

1. What features does a multi‑currency business account offer in the US?

A multi-currency business account allows your company to receive, hold, convert, and send money in multiple currencies using local bank details – enabling access to USD, EUR, GBP, and JPY accounts, real‑time interbank FX rates, multi‑currency corporate cards, and global payouts with minimal fees.

2. What is multi‑currency support in business banking?

Multi-currency support enables a business to receive payments, hold balances, convert between currencies, and spend in multiple currencies using a single account, thereby simplifying global cash flow and reducing foreign exchange friction.

3. How many currencies can I hold in an Airwallex account?

With Airwallex, you can hold, convert, and manage over 20 currencies in your Global Account, including major currencies such as USD, EUR, GBP, AUD, and HKD.

4. How do local account details reduce fees?

Local account details enable payments to be processed via domestic payment rails, rather than cross-border SWIFT transfers, helping you avoid intermediary bank fees and expedite settlement times.

5. Can a multi-currency account help me avoid forced conversions?

Yes. By holding and spending in the same currency, you can avoid unnecessary currency conversions, thereby protecting your margins and enhancing control over working capital.

Sources:

1. https://www.ey.com/en_sg/insights/banking-capital-markets/how-new-entrants-are-redefining-cross-border-payments