insight category

Developing in house MCC & DCC for a major international Processor and Acquirer

September 7, 2020

Currency Stream is enabling a leading privately held PSP and Payment Processor to deliver multi-currency conversion (MCC) services to their client ATM networks, Point of Sales (POS) and ePOS solutions.

Key to the client’s European growth strategy is a comprehensive currency solution, providing potential clients with a seamless and fully integrated offering for a range of customer facing payment services.

Key Customer Requirements

The Solution

The client is integrated with the Currency Engine API   to provide Merchants with Real-time FX rates, whilst Currency Stream manage the profile of usage and dynamically hedge all FX positions automatically via the API. Implementation took 6 weeks to migrate from a look-up table to providing live FX rates 24/7 in 14 countries.

Why did the client select Currency Stream as a partner?

“Fixed pricing enables our clients to price with certainty and protect margins in a competitive market”

Key Driver To maximize profitability whilst remaining competitive

A key driver for the client was to maximize the commercial return whilst remaining highly competitive   in their FX pricing to their Merchant clients. Currency Stream’s proprietary solution was unique in being able   to address these opposing drivers, through delivery of:

Dynamic Yield Management (DYM)

Through real-time tracking of live data feeds combined with rules based management of information, the client  has seen acceptance levels increase by 8% since go-live (6 months).

Dynamic Hedging of Foreign Exchange

Through the use of wholesale-market, industry- standard modeling and pricing tools, our FX booking   engine automatically maximizes profit on each transaction whilst eliminating losses. As a result we increased DCC FX revenue yields by an average of 6% on traded currencies.

Lower Price Point for our Enhanced Services

In our industry, price usually reflects risk exposure for the DCC provider. Most competitors do not have truly  dynamic hedging of their risk and therefore have to charge more for inferior solutions.

Currency Stream’s flat pricing model secured the client an additional 25 Basis Points per transaction of revenue above when compared to traditional DCC, enabling flexibility to price aggressively and/or yield greater profits.

Fixed pricing enables our clients to price with certainty and protect margins in a competitive market.

Improved pricing over weekends (dynamic price improvement)

Currency Stream is the only company providing real-time   weekend pricing. We are therefore able to take advantage of minor price improvements on behalf of clients. With clients seeing large volume increases over weekends, the increase to overall revenues captured has been   more than 3% compared with traditional solutions.