Payment infrastructure provider Mangopay has introduced an FX (foreign exchange) solution designed to enhance cross-border capabilities and support international growth for online platforms.
The FX solution aims to bring more transparency and control to how platforms handle currency conversions in cross-border transactions. The primary goal is to empower these platforms to explore new revenue avenues, offer localised payment experiences to users, and gain better control over their treasury operations.
Mangopay has a global presence, offering its flexible modular payment infrastructure to over 2,500 platforms, including notable brands like Vinted, Chrono24, Wallapop, La Redoute and Rakuten, helping them scale their operations..
The end-to-end FX solution offers platforms the tools to construct a versatile and adaptable cross-border strategy. It includes features like Spot FX, which enables platforms to access real-time exchange rates for immediate currency conversion, and Guaranteed FX, which briefly locks in rates to mitigate the risk associated with currency fluctuations.
This development comes on the heels of a survey involving 200 chief financial officers (CFOs) and nearly 300 treasurers, where 77 per cent of CFOs in the EMEA region admitted to experiencing reduced earnings due to avoidable FX risk over the previous two years.
By harnessing the capabilities of Spot or Guaranteed FX, platforms can provide localised buying experiences that reduce checkout abandonment rates, take charge of their treasury and liquidity management, and enable both buyers and sellers to handle fund collection and conversion in multiple currencies. Importantly, this flexibility allows platforms to implement FX at various stages of the payment process, without being confined to converting currencies solely during pay-ins or payouts.
In addition, the company is strengthening its payout network over the coming months to facilitate faster and more cost-effective global payouts to over 60 currencies, with local settlement in over 20 currencies.
Kirk Donohoe, chief product officer, Mangopay, commented: “We consistently hear from the platforms and marketplaces we work with about the importance of taking control of their cross-border money movement so they can create delightful user experiences, optimise operations and drive business growth.
“Our FX solution completely removes the friction associated with traditional currency conversions, providing the flexibility to easily manage cross-border payment flows. It simplifies FX for the platforms we work with and their customers, from pay-in to payout and money movement within their ecosystem.
“We do well when our customers do well, and supporting their ambition through innovative payment infrastructure and cross-border products remains core to our strategy. We are extremely excited about the opportunity to support the platforms we serve with their international growth.”