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Hey everyone. I'm setting up my company right now and I'm in the position to do multi-currency pricing. You can buy for $10, €10, or 580 ₱ for example.
I can use USD for my day-to-day business transactions. That's normal. I can collect EUR and use that to pay myself, as I've moved to Germany. I can collect Pesos and use that to pay my Filipino staff, but their salaries are pegged to the dollar anyways so it's not a big issue and I doubt I'll get many Filipino travellers.
So, is there any advantages to collecting and holding many currencies? Right now, with Wise, transfers are cheap AF and it's not a hassle like it used to be. For US credit card holders, at most, it'll be a 2% currency conversion fee. For people reading this who are not in the US and in a place without such a developed banking system, if a business accepts your local currency, would it save you a lot on currency conversion fees with your bank? I mean I see it for some countries but, if that is so, I don't want to hold their currency. As for Eurozone, banking here is pretty advanced.
So, is there really any advantage to accepting multiple currencies? Even the one use of it for me, to pay myself Euros, isn't even a real benefit, as it saves like €3 in transactions fees each time. The hassle of doing multi-currency accounting is more than that.
There might be a hedge against a recession by holding on to different currencies... but I don't see the point. Even if I want to use GBP to buy UK stocks, I can do that already with Schwab or any US exchange.
So... is this one of the situations where I have the ability to do something but there's really no use to do so? The only other benefit I see is that, if I collect GBP for example, and never use it, I'll just stay in the GBP bank account forever, which makes me save that money! Not that bad actually.
Also, if you're interested, Stripe, Paypal, and Wise allows for multi-currency banking. You just need to set up your payment form to bill in multiple currencies and you can do this too. Pretty awesome.
So website bills for 22₱, which is sent to Stripe/Paypal and stripe/paypal deposits 22₱ to your ₱ checking account with Wise. Done!
I can use USD for my day-to-day business transactions. That's normal. I can collect EUR and use that to pay myself, as I've moved to Germany. I can collect Pesos and use that to pay my Filipino staff, but their salaries are pegged to the dollar anyways so it's not a big issue and I doubt I'll get many Filipino travellers.
So, is there any advantages to collecting and holding many currencies? Right now, with Wise, transfers are cheap AF and it's not a hassle like it used to be. For US credit card holders, at most, it'll be a 2% currency conversion fee. For people reading this who are not in the US and in a place without such a developed banking system, if a business accepts your local currency, would it save you a lot on currency conversion fees with your bank? I mean I see it for some countries but, if that is so, I don't want to hold their currency. As for Eurozone, banking here is pretty advanced.
So, is there really any advantage to accepting multiple currencies? Even the one use of it for me, to pay myself Euros, isn't even a real benefit, as it saves like €3 in transactions fees each time. The hassle of doing multi-currency accounting is more than that.
There might be a hedge against a recession by holding on to different currencies... but I don't see the point. Even if I want to use GBP to buy UK stocks, I can do that already with Schwab or any US exchange.
So... is this one of the situations where I have the ability to do something but there's really no use to do so? The only other benefit I see is that, if I collect GBP for example, and never use it, I'll just stay in the GBP bank account forever, which makes me save that money! Not that bad actually.
Also, if you're interested, Stripe, Paypal, and Wise allows for multi-currency banking. You just need to set up your payment form to bill in multiple currencies and you can do this too. Pretty awesome.
So website bills for 22₱, which is sent to Stripe/Paypal and stripe/paypal deposits 22₱ to your ₱ checking account with Wise. Done!
