B2B payment solutions firm eNett International has added more currencies to help lower the cost of cross-border payments for travel firms.
The move comes in response to increasing international transactions.
Mexican pesos, Russian roubles and Turkish lira have been added to eNett’s range of currencies as travel companies are transacting in more currencies than ever before.
The company claims it can reduce the cost of payment for more than 80% of the total global travel spend.
Recent research by Phocuswright showed 61% of travel agencies are issuing payments in more than one currency, and travel companies accepting payments in more than ten different currencies has doubled in the past three years.
This trend is only set to increase, driven by consumer demand for more locations and digital technologies making global expansion more attainable.
However, travel agencies could still be paying up to 3% more on each international transaction by using traditional payment options like bank transfers, eNett claims.
Managing director and chief executive, Anthony Hynes, said, “Global cross-border e-commerce revenues are estimated to swell from around $80 billion today, to $250 – $350 billion by 2025.
“International payments strategy should be a high priority for travel companies, with many still paying more on international transactions than necessary.
“With FX options designed to lower costs, and local funding and settlement avoiding charges, small changes can result in huge savings.”
Commenting on the impact of the UK triggering Article 50 on travel payments, Hynes said: “Mark Warner, one of Britain’s biggest tour operators has told holidaymakers they need to pay more for their ski breaks as a result of currency fluctuations and Abta reports that at least seven other companies have added similar surcharges in recent months.
“With Article 50 triggered, there may will be more uncertainty and major shifts in exchange rates.
“We could also see longer settlement times for travel transactions whilst new regulations and processes are agreed.
“We’d urge travel companies to plan now to protect both themselves and their customers.
“There are innovative payment options which protect against uncertainty.
“For example, travel companies can lock-in currency at the time of booking to avoid nasty surprises.
“It also provides a digital record of transactions, which helps validate payments if an operator goes bust and vastly improves reconciliation times, which has a big impact on cashflow and operations.
“With travel companies already operating at tight margins, a drop in value of the pound could represent huge losses. So why take the risk? ”