If you are running an international business, it is obvious that it involves a number of overseas transactions that require you to trade in multiple currencies. In such cases, having a multi-currency account with a local bank or fintech company can come in handy. It can help you to save on unnecessary conversion fees, сurrencies bounces, and cross-border payments while making every international transfer a breeze.
What is a multi-currency account?
A multi-currency account is a consolidation of multiple currencies accounts into one central account. This means that you can hold, send, and receive various currencies without constantly converting them.
For example, If your business is based in Spain and you have customers in the US, UK, and Germany, you can open a multi-currency account with a local bank or fintech company. This way, you will be able to hold EUR (for Spanish customers), GBP (for UK customers), and USD (for US customers) all in the same account. In addition, when you need to make payments to suppliers or employees located overseas, you can do so directly from your multi-currency account without having to convert the currencies first.
There are many other benefits of using a multi-currency account for your business, including:
- Multi-currency accounts also come with debit cards which can be used to make purchases or withdraw cash in the local currency. This can be very helpful when you are travelling for business or if you have employees who travel frequently.
- Multi-currency accounts can help you save on conversion fees as well as exchange rate fluctuations. These accounts generally have lower costs than what you usually pay for other types of accounts. When you hold multiple currencies in your account, you will always have the funds available in the right currency, which eliminates the need to convert currencies unnecessarily.
- A multi-currency account can give you a better understanding of your international finances and help you manage your cash flow more effectively. By consolidating all of your foreign transactions into one account, you can more easily track where your money is coming from and going to.
How do multi-currency accounts work?
Multi-currency accounts work by allowing you to hold and transact in multiple currencies within the same account. The account will have a “home” currency, which is usually the currency of the country where the account is held, but you will also be able to hold and transact in other currencies. Usually a multi-currency account includes these currencies:
- US Dollars (USD)
- Canadian Dollars (CAD)
- Euros (EUR)
- Japanese yen (JPY)
- Pound sterling (GBP)
- Singapore dollar (SGD)
- Australian dollar (AUD)
- Hong Kong dollar (HKD)
Where to find the best multi-currency account?
There are a few different places where you can look for the best multi-currency account. One option is to go directly to a bank or other financial institution in Spain that offers these accounts. Another option is to use an online service such as wamo or TransferWise. These services allow you to compare different options and find the best one for your needs.
Traditional banks have generally been the go-to option for most people when it comes to finding a place to hold their money. However, they are not always the best option when it comes to multi-currency accounts. This is because traditional banks typically charge high fees for things like currency conversion and international transfers. They also tend to have less competitive exchange rates. Another reason that holds back entrepreneurs from going to traditional banks is that they might ask you to visit in person to open an account and one has to go through thorough documentation. This is because of the strict regulations of banks especially when it comes to expats. If you’re an entrepreneur with a busy schedule, this can be quite inconvenient.
Fortunately, there are other options available that can save you time and money. Online services like wamo offer multi-currency accounts with less monthly fees, low or no foreign transaction fees, and more competitive exchange rates. They also allow you to open an account entirely online, which means that you don’t have to take time out of your day to go into a bank branch.
What's a wamo business account with multi-currency?
wamo is a fintech company that enables small and mid-sized companies in Spain to manage all their financial aspects in one single place. A business account with wamo helps entrepreneurs to eliminate the hassle and rejections often faced by traditional banks as an expat.
wamo multi-currency account comes with physical and virtual debit cards that can be used to make payments in multiple currencies all over the world without incurring a lot of transaction fees. The card can also be used to withdraw cash at ATMs around the world. In addition, wamo offers features such as invoicing, automated finance management, sub-accounts, company registration in the UK and spending insights to help entrepreneurs manage their businesses more effectively.
The best part about a wamo's business account is that you can expect a much faster turnaround and get excellent customer support. Once you register for a wamo account which takes less than 10 minutes, you will be connected to a wamo representative who will help you set up your account and answer any questions that you may have.
The process is very easy and foreigners planning to open a business account in Spain can get started right away. All you need to do is download wamo business app from Google Play or App Store or head to the website to register yourself.