HSBC Expands Rollout of FX FlexRate Service
HSBC said that it is expanding the rollout of its HSBC FX FlexRate service, which allows merchants and automated teller machine (ATM) providers to offer customers the choice to transact in multiple currencies, across digital transaction services.
FX FlexRate, a multi-currency pricing (MCP) and dynamic currency conversion (DCC) service, will help online retailers to support their business by allowing international customers to pay in a range of currencies, including their own.
“Everyday commerce increasingly takes place online and across borders, while international travel is becoming more affordable for millions of people,” said Joe Norena, global head of FX e-distribution at HSBC. “This service is a natural step for HSBC; our expertise in foreign exchange (FX) risk management offers merchants the currency pricing to accommodate a range of end user buying experiences.”
The push into digital transaction services follows last year’s rollout of FX FlexRate to merchants and ATM providers, which gives travellers immediate transparency of their debit amount when using cards abroad. HSBC implemented the service across its own ATMs during the London 2012 Olympics, during which 70% of non-UK customers chose to transact in their own currency.
Alan Smith, head of global FX and structured products at HSBC’s retail banking and wealth management unit, said: “There has been a real step change in how people access and manage their money abroad, and HSBC is well placed to facilitate the trend. The total number of DCC transactions on HSBC’s ATMs has now surpassed 1.5m, and we see demand growing further in 2014.”