A new service proposed by OFX, one of the world’s largest international payments businesses, will enable merchants to reduce the foreign exchange fee faced when selling on international marketplaces by 6-fold according to Forbes. The service is already running in Hong Kong and will soon be launched in Singapore and China.
One of the complexities to manage when selling across international borders is currency exchange. As a merchant, it can be a real punch in the gut when you lose money in forex and on top of that, have to pay 3-4% fees to marketplaces like Amazon and eBay to convert money back into your home currency. “Given how slim online retail margins are, this is a big deal,” says Richard Kimber, CEO of OFX.
To alleviate the pain of paying such fees to marketplaces, OFX, one of the world’s largest international payments businesses has launched a new service called OFX for Online Sellers. Jeff Parker, Chief Enterprise Officer for OFX comments,
Exchange rates and associated fees can mean the difference between growth and stagnation for emerging merchants
When you’re ready to move the money back into your local Hong Kong account, you only pay 0.5% commissions to OFX rather than 3-4% to Amazon. There is no charge to open an online seller account and no account keeping fees. By collecting money in domestically held accounts via OFX for Online Sellers, OFX is allowing merchants to save up to 60% in exchange rates.
The service to reduce foreign exchange fees currently works for merchants who sell to or from North America, UK, Europe, Hong Kong and Australia. It will soon add Singapore and China to the list. Right now, the site is only in English but will offer multiple languages later down the road.
Parker concludes: “We’re providing the means for merchants to reach new customers across country borders.”
A version of this appeared in Forbes on July 6. Read the full article here