Page 36 - GS250501

Insights and Expertise

Why merchants are eager to offer MCP lands on a website, not just at checkout. This involves
seamless integration with Content Management
For merchants, the incentive to offer currency localization Systems (CMS) and collaboration across various
is twofold: departments.

1. Direct FX markup: Merchants have the freedom • FX risk management: Cross-border transactions
to adjust FX rates to their advantage. Surprisingly, can take up to 72 hours to clear. To mitigate this
nearly half of the merchants surveyed choose not to risk, many merchants lock in rates with FX suppliers
mark up FX rates at all, offering the service for free to for up to three days. Allowing rates to float can be
enhance customer experience and loyalty. hazardous, particularly in volatile markets.
2. Increased conversion: Consumers prefer to see • Supplier limitations: While global banks offer
prices in their local currency, which often leads to robust FX services, they often fall short when it comes
higher conversion rates. Survey findings indicate to handling refunds or generating internal reports,
that MCP can boost conversions by as much as 5 to forcing merchants to create their own operational
10 percent—a significant win for merchants where frameworks.
incremental gains make a considerable difference to
profitability. The principle of selling more beats the • Currency coverage: Successful MCP implementation
cost of payments is proving true in the FX space, too. requires supporting a broad array of currencies.
Most merchants offering MCP cover between 30 and
The operational hurdles of MCP implementation 50 currencies, but supporting less stable or regulated
While the benefits of MCP are clear, implementing the currencies presents additional challenges.
system is no simple task. Merchants face several challenges: Should issuers be paying attention?
• End-to-end journey Localization: Offering localized Since the European regulation of interchange fees, FX
pricing requires adjustments from the moment a user revenue has become a lifeline for card issuers.

However, Uber's move—and similar initiatives by
other large digital merchants—presents a clear threat.
COMPANY If consumers can access a cheaper, more convenient
PROFILE Get the right FX service from merchants directly, why would they
Company Name continue to rely on their card issuer's more expensive
o
go
L Logo Contact folks talking offering?
Position
Phone Number
Email Address about your
Website Much like BNPL, the appeal of MCP lies in the
Company’s story: business with a merchant's ability to absorb some of the costs to

Lorem ipsum dolor sit amet, consectetur adipiscing
elit, sed do eiusmod tempor incididunt ut labore et enhance customer satisfaction and drive sales. And
dolore magna aliqua. Green Sheet
Ut enim ad minim veniam, quis nostrud exercitation although rolling out MCP requires careful planning
ullamco laboris nisi ut aliquip ex ea commodo conse-
quat. Duis aute irure dolor in reprehenderit. Company profile! and substantial investment, the rewards are well
worth the effort.
We’ll help you showcase With players like Uber now stepping into this space,
Your products and services it's only a matter of time before more companies
follow suit.
Your mission
Your skills and expetise Issuers must act quickly to retain their grip on FX
We’ll tell the world revenue streams. The future of cross-border payments
Why your company matters may very well be dictated not by banks or card
Take steps now to networks, but by the merchants themselves.
Enhance your visibility Chris Jones manages PSE Consulting's business and is well known
Boost your credibility in the UK and EU for his regular insights into payments innovation.
Gain industry recognition He has spent the last 20+ years leading assignments for major
Unlock networking opportunities clients during his time at PSE and Accenture. His specializations
Stir investor interest include customer proposition development, market entry strate-
Don’t delay! gies and enterprise value creation. Contact him via email at info@
Contact Rick Aston today at pseconsulting.com or on LinkedIn at linkedin.com/in/chrisjone-
707-284-1693 or rick@greensheet.com spse. To learn more about PSE, a provider of payment advisory ser-
vices to professionals across the payments landscape, visit https://
pseconsulting.com.
36
36