Multicurrency accounts – the basics: what they are and how they're used


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  1. Introduction
  2. What are multicurrency accounts?
  3. What are multicurrency accounts used for?
    1. For businesses with global operations
    2. For frequent travellers
    3. For specialised use cases
  4. Benefits of multicurrency accounts
    1. Cost-effectiveness
    2. Operational flexibility
    3. Risk mitigation
    4. Convenience and accessibility
    5. Specialised needs
  5. Challenges of multicurrency accounts
    1. Complexity in management
    2. Costs and fees
    3. Risk factors
    4. Accessibility and availability
    5. Integration concerns
  6. How Stripe supports multicurrency accounts

Multicurrency accounts have become an indispensable resource for businesses that operate on a global scale. These specialised accounts, which simplify international transactions, are a key tool for companies looking to expand beyond domestic markets. According to a report by Grand View Research, global mobile payment transactions were valued at over US$2 trillion in 2022, which highlights the major shift towards digital platforms that often involve multicurrency transactions. Whether your business is a digital startup looking to accept payments from different countries or an established corporation investing overseas, a multicurrency account can provide you with the operational flexibility that traditional banking arrangements often lack.

The advent of digital banking and fintech has accelerated the adoption of multicurrency accounts, many of which offer features that go beyond the basic functionality of holding multiple currencies – such as real-time exchange-rate updates and lower foreign transaction fees. These accounts have evolved to become an all-encompassing solution for businesses with diverse currency needs. But with these compelling advantages comes complexities and challenges that businesses must consider.

Below, we break down the key features of multicurrency accounts, their benefits and the challenges that you may face when operating one.

What's in this article?

  • What are multicurrency accounts?
  • What are multicurrency accounts used for?
  • Benefits of multicurrency accounts
  • Challenges of multicurrency accounts
  • How Stripe supports multicurrency accounts

What are multicurrency accounts?

Multicurrency accounts are specialised bank accounts that allow businesses to hold, manage and transact in multiple currencies. Unlike a standard bank account – which is typically denominated in a single currency – a multicurrency account offers the account holder the flexibility to work with different currencies without needing to convert funds.

What are multicurrency accounts used for?

Multicurrency accounts are used for handling transactions in different currencies without the need for frequent conversions. These accounts serve several practical purposes for different groups:

For businesses with global operations

  • Cost efficiency
    Businesses that deal in multiple currencies often incur costs in the form of exchange rates and fees. A multicurrency account allows for direct transactions in the required currency, mitigating many of these costs.

  • Payment flexibility
    With a multicurrency account, businesses can pay suppliers, vendors or employees directly in their preferred currency. This adds a layer of convenience and can improve supplier relationships.

  • Risk management
    Currency volatility is a common concern for businesses that operate internationally. Holding multiple currencies in a single account allows for hedging against unfavourable shifts in currency values.

  • Revenue streamlining
    For businesses that generate revenue in different currencies, multicurrency accounts simplify the reconciliation process. Businesses can hold revenues in the currency in which they are received until it's beneficial to convert them.

For frequent travellers

  • Expense management
    Individuals who travel frequently can benefit from an account that allows them to transact in multiple currencies, bypassing the fees tied to currency conversion at international points of sale.

  • Investment opportunities
    Multicurrency accounts offer a convenient way to manage assets in different currencies, without needing to open accounts at multiple financial institutions. They can be especially helpful for astute investors who want to diversify portfolios internationally.

For specialised use cases

  • Property ownership
    People who own property in different countries can manage their finances more easily with a multicurrency account. These accounts can address a range of issues, from receiving rent payments to handling maintenance fees in different currencies.

  • Foreign tuition payments
    Parents who send their children abroad for school can use multicurrency accounts to pay tuition and other fees directly in the currency of the host country.

Benefits of multicurrency accounts

Multicurrency accounts offer many advantages that can simplify global financial transactions for businesses and individuals. Here are some of these benefits:


  • Reduced conversion costs
    Transacting directly in the desired currency can eliminate, or at least minimise, conversion fees. Over time, these savings can have a big impact on the bottom line.

  • Transparent fees
    Often, the account structure comes with a transparent fee schedule for transactions in different currencies, which provides predictability in cost management.

Operational flexibility

  • Speed and timing
    Quick and easy access to multiple currencies allows businesses and individuals to make timely payments or investments. For example, if a business needs to pay an invoice from an overseas supplier immediately, a multicurrency account provides the ability to act fast.

  • Localised payments
    Making payments in a local currency can sometimes lead to better terms and strengthen relationships with suppliers and partners.

Risk mitigation

  • Currency fluctuation
    Because these accounts let you hold different currencies, you can act when exchange rates are favourable. This can be an effective way to offset the risks associated with currency volatility.

  • Liquidity
    Holding funds in multiple currencies increases financial liquidity and allows you to move assets more freely, without the frustrations of conversion lag times.

Convenience and accessibility

  • One-stop management
    Multicurrency accounts consolidate your currency needs into a single platform, making it easier to manage and oversee your assets.

  • Digital access
    Like most modern bank accounts, multicurrency accounts offer online and mobile banking features, which provide real-time account management. You can shift funds, pay invoices or check balances at your convenience, without waiting in line at a bank.

Specialised needs

  • Global investments
    These accounts make it simpler to invest in foreign markets. They allow you to transfer funds directly in the required currency, bypassing conversion delays and fees.

  • International living expenses
    Multicurrency accounts can simplify money management for people who live in one country but have financial obligations in another (due to property management or family responsibilities, for example).

  • Education expenses
    For the parents of children studying abroad, these accounts facilitate the direct payment of fees, living expenses and allowances in the currency of the country where the educational institution is located.

Multicurrency accounts bring a level of efficiency, agility and cost-effectiveness to handling global transactions that single-currency accounts cannot match. They cater to a broad range of needs, from business operations to personal financial management, and they provide a versatile financial resource.

Challenges of multicurrency accounts

Although multicurrency accounts come with an array of benefits, they also have their challenges. Below are some key considerations.

Complexity in management

  • Rate monitoring
    Keeping track of fluctuating exchange rates for multiple currencies can be time-consuming. Customers must monitor these rates closely to make educated financial decisions.

  • Regulatory compliance
    Operating in multiple currencies usually means adhering to different sets of financial regulations. These can include tax implications, anti-money laundering rules and reporting obligations. Adhering to all of these regulations can complicate recordkeeping and legal compliance.

Costs and fees

  • Variable fees
    While some multicurrency accounts promise low or zero fees for currency conversion, others can have substantial charges for account maintenance, cash machine withdrawals or international bank transfers.

  • Interest rates
    Generally, these accounts do not provide attractive interest rates on deposits. Customers might find that the cost of maintaining multiple currency balances outweighs any income from interest.

Risk factors

  • Exchange rate risks
    The convenience of holding multiple currencies comes with inherent volatility. Balances in one currency could lose value against another, affecting the account's overall worth.

  • Account limits
    Certain restrictions often apply to multicurrency accounts that might not apply for single-currency options. These may include transaction limits or maximum balance caps for particular currencies, which can affect financial planning and liquidity.

Accessibility and availability

  • Banking services
    The range of services that these accounts provide can vary substantially between financial institutions. Some might not offer all of the features you need, such as subaccounts or real-time transfers between currencies.

  • Geographic restrictions
    Some banks only offer multicurrency accounts to residents of specific countries or regions.

Integration concerns

  • Account syncing
    There is no guarantee that a multicurrency account will integrate fully with the financial software that a business uses for bookkeeping or expense tracking.

  • Transaction timing
    Transferring funds between different currency balances is not always an instant process. Time lags could have a detrimental effect, especially in volatile markets.

While multicurrency accounts present undeniable advantages for managing finances across borders, the complexities and potential downsides warrant a careful evaluation. Customers must weigh these challenges against the benefits to determine if a multicurrency account is right for meeting their financial objectives.

How Stripe supports multicurrency accounts

Stripe helps businesses accommodate the complexities of dealing in multiple currencies. Here is a detailed look at some of the features that Stripe offers to handle multicurrency accounts:

  • Automatic currency conversion
    Stripe allows your business to charge customers in their preferred currency while receiving funds in the currency of your choice. The conversion happens automatically, alleviating the need for manual calculations or conversions. This feature is particularly helpful if your business has a diverse customer base spread across different countries.

  • Localised pricing
    Businesses can use Stripe to present pricing in a localised manner. This can mean tailoring the prices to market conditions in different countries or simply presenting prices in the local currency. This feature increases the likelihood of successful transactions and helps to improve the customer experience.

  • Broad range of supported currencies
    Stripe supports processing payments in 135+ currencies, which allows businesses to operate in multiple markets without the need for separate accounts or complex financial setups.

  • Dynamic reporting
    Financial reporting can be complicated for businesses that operate in multiple currencies. Stripe's detailed reporting features offer businesses an accurate and real-time view of their finances. Businesses can apply filters to view transactions by currency type, which can help with financial decision-making.

  • Integrated currency balances
    Stripe allows businesses to maintain balances in multiple currencies and pay out in the currency that works for them. This feature offers businesses greater flexibility when working with overseas suppliers or international team members, because it avoids extra conversion fees.

  • Currency-specific routing rules
    Stripe's advanced APIs provide the ability to route incoming payments to specific currency accounts automatically. This feature is particularly convenient for businesses that prefer to maintain currency-specific ledgers or need to comply with regional regulations.

  • Developer-focused tools
    Stripe's API allows for extensive customisation to suit a business's specific needs. The API accommodates multicurrency transactions, enabling businesses to build custom solutions that integrate easily with their existing financial systems.

  • Payment methods
    Stripe supports multiple currencies and also accommodates various payment methods that are popular in different countries, such as Alipay in China and SEPA Direct Debit in Europe. Providing customers with familiar payment methods can boost sales and offer a better customer experience.

  • Built-in compliance
    Stripe helps businesses adhere to global tax and compliance rules by calculating and adding necessary taxes automatically during the checkout process. This helps businesses to meet compliance goals without extra legal or accounting overheads.

Stripe's multicurrency features are designed to offer businesses the flexibility, convenience and compliance that they need to operate successfully on a global scale. While these features solve many problems inherent in international trade, they are most effective when leveraged as part of a comprehensive financial strategy.

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