Exchanging Currencies on eCommerce Websites
Translating Currency Value in Real-Time
3 Steps to Take Before Accepting Foreign Currencies on Your eCommerce Website
In order for an international eCommerce business to accept and exchange foreign currencies, there are three steps that need to be taken.
- First, a multi-currency merchant account needs to be established through a bank or service that offers merchant accounts for global businesses.
- Second, a global eCommerce company must establish an integration to a payment gateway that accepts international currencies.
- Lastly, the eCommerce platform, system or cart must support multiple currency transactions.
Calculating Currency Exchanges in International eCommerce Platforms
"Seeing an unfamiliar currency on an eCommerce site is confusing to a lot of people and can lead to the abandonment of online shopping carts. To decrease eCommerce friction and cart abandonment, set prices in every relevant local currency."
-Craig Vodnik, VP of Operations at Cleverbridge
The protocols involved in establishing mult-currency conversions are not easy. For customers, their preferred currency or the currency of their country of residence must be shown to them in real time during the checkout process. This reduces confusion and purchase friction during your eCommerce checkout process.
Furthermore, local payments gives your eCommerce website the chance to offer international customers a familiar payment method. Unfamiliar payment methods can increase suspicion and become a barrier to sale for many customers. "In Germany, for example, wire transfers are the most important local payment method," explained Vodnik. "Whereas in Japan, the Konbini payment method is a popular alternative, representing nearly 40% of some of our clients Japanese transactions." Source: Forbes
On the business operations side, a currency integration streamlines the international payments acceptance process. A currency exchange integration also insulates your company from losses stemming from fluctuating currency values, which can change suddenly and unpredictably.
Developing Real-Time Currency Calculations for Your eCommerce Website
Translating currencies in real-time both to inform the user and facilitate an instantaneous exchange of currencies at current market value can pay massive dividends for a global eCommerce company.
A currency integration will increase sales conversions and your bottom line. We know this because we've designed hundreds of custom currency integrations for eCommerce platforms, including our own, that never fail to produce the same result: more international eCommerce revenue.
If you're thinking about expanding your enterprise eCommerce business globally or need a currency integration for your international eCommerce platform, give Clarity a call today for a free consultation!