Are you someone who paid a hefty fee for international bank transfers? Well, what if I tell you that you can save a lot of money on international bank transfers, and never let a bank take a percentage of your profits ever again?
You ask how?
Well, there is a thing called multi-currency wallets. Never heard of them? Obviously, since you’ve already made an expensive bank transfer.
But all jokes aside, multi-currency wallets are now the hottest trend in the world of finance. As businesses are trying to cut down unnecessary expenses, they usually end up using multi-currency accounts, especially if they are making a ton of international transactions.
So, what’s the deal with multi-currency wallets? Why are they trending all of a sudden?
Well, the world is going digital, and businesses and individuals are making international transactions every day (sometimes without even knowing). And as you know, sending or receiving money to or from a different country is a bit complicated.
First of all, you have to deal with fees, that are sometimes so big that it doesn’t make sense to make a small wire transfer.
For example, if you are someone who monetizes a blog on AdSense, you need to collect $70 to withdraw your money, but then you have to pay bank transfer fees which can go as high as $30 and more. This is more than 40% of your generated revenue, which is why people must wait until they collect more to make a withdrawal.
But fees are the only thing you need to worry about. We also have different currency transactions, which shouldn’t surprise us in this Gig economy. These transactions are usually converted automatically into your local currency at unfavorable rates, and there may be more fees.
Fees, after fees, you end up with breadcrumbs in your bank account. But there is a solution – multi-currency wallets!
What Exactly is a Multi-Currency Wallet?
Multi-currency wallet is the perfect tool for international transactions. You can send, receive, hold, and convert multiple currencies within a single platform.
This means that you can be paid in a different currency without being forced to convert, and also save a bunch of money on expensive fees.
These multi-currency wallets can hold various currencies like USD, Euro, Yen, Lyra, and whatever you want. Some of them are even so powerful that they can hold your cryptocurrencies as well, making it even easier to manage your assets. You can also choose to convert to some of the most stable currencies just to protect yourself against inflation.
But what makes these wallets so special? Here’s a breakdown:
- Convenience: Manage all your currencies in one place.
- Flexibility: Pay suppliers and employees in their local currencies.
- Cost-effective: Save on conversion fees by making transfers at favorable exchange rates.
Why Should Your Business Use One?
If you’ve ever paid hefty fees for international wire transfers, you already know why multi-currency wallets are important. Traditional bank accounts and currency exchanges often slap high conversion fees and take days to process transactions.
Multi-currency wallets, on the other hand, offer faster settlements and better rates, helping you save both time and money.
You also get access to your business account, where you have a great overview of every single transaction, and you can manage fees, different currencies, and exchange rates, just so you can get the most out of your money.
But wait, there’s more! Multi-currency wallets also provide:
- Ease of international expansion: Working with international clients or suppliers? A multi-currency wallet allows you to transact in local currencies without the hassle of frequent conversions.
- Risk management: Hold multiple currencies to hedge against currency fluctuations. Got a big invoice coming up in euros but worried about the exchange rate? Simply hold euros until you’re ready to make the payment.
Features to Look For in a Multi-Currency Wallet
Not all multi-currency wallets are created equal. Some come with all the bells and whistles, while others might fall short in crucial areas. Here’s what you should prioritize:
- Currency Support: Make sure the wallet supports the currencies you most often deal with. Some wallets can handle 30+ currencies.
Low Transaction Fees: Watch out for hidden fees. Look for wallets that are transparent and charge minimal conversion and transfer fees.
- Instant Transfers: Some wallets can process payments within minutes, while others could take days depending on the payment network (SWIFT, SEPA, ACH, etc.).
- Security: Ensure the platform offers robust security features, such as two-factor authentication (2FA) and data encryption.
Real-Life Benefits for Businesses
Let’s say you’re running an e-commerce company that deals with international buyers. A multi-currency wallet enables you to accept payments in various currencies—without having to go through the tiresome and expensive process of converting it all to your home currency.
Here are a few concrete ways these wallets improve your operations:
- Reduced Conversion Costs: By managing your currency exchanges directly in the wallet, you avoid intermediary conversion fees.
- Faster Payment Processing: No more waiting days for cross-border transactions to settle.
- Employee Payments: Pay remote employees in their local currency, without worrying about exchange rates.
- Easy Invoicing: Issue invoices in multiple currencies, streamlining your accounts receivable.
