2022 is the year to welcome international currencies into your business model.

In recent months, the ongoing Covid-19 pandemic, alongside news of the Ukraine-Russia conflict, has thrown global supply chains into the forefront of daily conversation. However, if Covid-19 has taught us anything, it’s that even a global lockdown won’t stop us from connecting with far flung friends, supplying goods abroad, and buying our products from overseas. While each of these hurdles have halted physical international expansion of business, digital avenues have become increasingly accessible and functional.

Day-by-day, the world is growing more connected.

That’s why in 2022, according to reports form Auxadi, appetite for global expansion in business is on the rise. In fact, cumulative data predicts a 16.8% increase in worldwide ecommerce sales over the most recent term. So, if your business is following suit – here’s why taking the initiative to embrace currencies will be a powerful string to your bow.

It’s time to embrace the idea of connection through currency.

It’s no secret that expanding your borders will open a plethora of revenue options for your business going forward. With international expansion set to take off in 2022, it’s important to stay one step ahead of the competition and start embracing currencies to set you apart and ultimately increase your profit margins.

Why would embracing currencies impact sales?

A customer base increased by millions clearly unlocks increased revenue potential, but it is important to remain aware of potential pitfalls when expanding. Today, 25% of European and 30% of US online consumers buy goods cross-border. If you are lacking in currency options, you run the risk of alienating your customer base. If your customer is greeted with a different currency than the one that they are familiar with using, it can leave them feeling dejected and frustrated, and they may never come back. Furthermore, if you are expanding into an emerging market but are selling in a stronger currency such as EUR or USD, then you are placing the FX risk on your buyer.

Conversely, it’s proven that the right currency can make your products more attractive to sellers. With customers now shopping from around the world, it’s important to note that buyers are most likely to complete a sale, and less likely to abandon their basket, if they have the option to buy the goods in their preferred currency, payment method, and language.

So, take the time to accommodate your customer base, and use international currencies in the same way as you might employ the use of multiple languages and payment methods.

Additionally, for business-to-business firms, there are clear advantages to welcoming new currencies into your company. Buying from the supplier in their currency helps your business to avoid steep FX markups and gives you the opportunity to find more cost-effective options.

What’s stopping you?

There are of course difficulties with any degree of business expansion, and currency it’s no different.

Through Currency Solutions, you will gain access to a multitude of top of the range FX solutions which will help you to tackle the overseas markets. We offer software that will be vital in providing your business with a company with a competitive edge. Our FX technology can build bespoke hedging strategies to help your company effectively manage your funds, such as our advanced customisable hedging functionality which can help you to calculate your FX risk exposure and inform your currency expansion decisions.

Contact us to learn more about our FX solutions.