Why businesses should use Pay iO
Transact with ease
Access over 130 currencies through our phone app, web portal or via your relationship manager.
*Certain currency pairs are traded OTC only.
Protect your profits
Our hedging offerings ensure clients can mitigate the risk of currency fluctuations negatively impacting their businesses’.
Knowledge is power
Stay informed with the latest currency moves and economic data, with regular market updates.
Peace of mind
Our liquidity providers are all trusted partners, regulated and authorised by the FCA.
Access all areas
We support payments to over 180 countries, through same-day settlement, SWIFT and SEPA capabilities.
Our offering, your name
We provide every business with named virtual multiple-currency accounts. Therefore, you can receive and send with ease.
Convert and send daily
Converting your currencies can be expensive, slow and a major point of friction.
Pay iO overcomes these problems with easy currency swaps via institutional liquidity partners. We are the one-stop-shop for businesses.
Rapid Onboarding Keeping Things Simple
Faster onboarding means you can be set up to start processing payments in 24 hours rather than weeks
What is Pay With Bank?
Pay With Bank enables payments to be made directly from your online banking or mobile bank app without the need to enter card details or sign up to any e-wallets or apps. By integrating Pay iO – Pay With Bank at checkout, businesses can request the payments directly on their website.
How long does a payment take to deposit using Pay With Bank?
Payments are usually confirmed and deposited instantly. However some payments may take up until the end of the next working day subject to bank checks.
How do I know a payment has been completed?
You will receive a notification once the payment has been sent and is on clearing house.
What are the limits for payments?
Pay iO currently has no payment limits however there will be limits that are in place with the payer’s bank account.
How many payments can be made using the card-less checkout?
You can accept as many payments as your business requires.
How much does it cost?
There is no cost for individuals/consumers. Businesses are charged on a transaction fee which is a fraction of the cost of card fees – please ask us for details as we will need to set you up with an account.
Contact Us We’ll give you a call back right away.
Foreign exchange rates can be a big deal when you run an international business or a business that needs to transact in different currencies. You will face a distinct challenge that many other organisations don’t face – foreign exchange rates.
Most banks and other institutions don’t offer a unique package to meet the needs of your business, and you might end up paying significantly more which will go into your overhead. That’s why you need our corporate FX services that will help you manage your currencies more easily with more competitive rates to give you an edge in the market.
What is Forex?
Forex, or Foreign Exchange, is the single largest market in the world, with trillions of dollars that change hands every day. The huge volumes signify the frequency at which individuals and businesses use the forex market.
In simple terms, Forex is the changing from one currency to another. In the process, financial institutions make a handsome profit from it.
What is Corporate FX?
Corporate or business FX is an inclusive name for Forex management, hedging and payments. Corporate FX services offer such services to businesses of all sizes, big and small, making their operations more efficient and helping to cut costs.
Reasons Why Businesses Need Corporate FX Services
Businesses consider having this type of service for many reasons. Some of the common ones for businesses considering corporate forex services include;
- Helping make payments easier – A corporate FX service can help you make one-off business payments overseas and help you exchange your base currency for the currency you need while avoiding SWIFT.
- Money transfers – The service can also help you make transfers to suppliers, providers, employees, affiliated companies and other B2B overseas payments online or via phone. The service can also handle payroll payments in a non-automated and automated manner.
- Reduced risk – The service can help you hedge currency risks by offering enhanced FX hedging derivatives covered in a currency forward contract.
- Guidance – Your business can also get guidance on the best times to make large currency exchanges, saving you massive amounts of money.
- Invoicing – Invoicing international clients is made cheaper and smoother with a corporate FX client.
Types of FX Risk
Businesses relying on foreign exchange will face additional risks that other businesses do not. Understanding these risks and how a corporate FX service can help you overcome or avert them is crucial.
Transaction risks occur when you agree to make a transaction using foreign currency. Normally, you pay when the goods arrive. The goods arrive as expected, but the pound loses its value during the shipping period against the other currency.
The supplier of the goods is not running any risks because they expect the same amount of money. But your business has to pay more in pounds to make the same value in the other currency. Although the decline in value could be negligible, in large payments, it will easily rack up to thousands of pounds in no time and even more if you make the payments regularly.
Translation risks affect companies with subsidiaries in other countries. If a British company has a subsidiary in China and the subsidiary reports its finances in the Chinese Yuan, the local currency could lose some of its value in comparison to the pound.
So when the company converts the number of reported yuan to pounds, it will show a diminished return, and if the loss is substantial, it could result in a loss.
For corporates, these numbers end up as part of a consolidated financial statement that could result in a fall in the stock price as investors lose confidence in the company based on the perceived poor performance. Simply put, translation risk distorts a company’s financial situation.
These are long-term risks associated with large macroeconomic changes in the market. For example, companies that run large operations in foreign countries, like manufacturing in China, might take advantage of the lower production costs there. But if, over the years, the yuan becomes stronger, the benefits of having moved your operations there are diminished, and the move could turn out to be more costly than expected.
How Companies Can Mitigate the Foreign Exchange Risks
Evidently, companies have limited control over the forex market. But they are not helpless; there are ways companies can mitigate the situation and reduce their exposure to some of these risks. Some of these ways include;
Forward exchange contracts
Forward Exchange contracts (FECs) are agreements made with a third party like a bank or a Corporate FX service to buy or sell a specific amount of money on a specific future date.
The benefit of an FEC is you lock in the existing exchange rate, called the spot rate, on the day you sign the contract. This way, you save your company the trouble of the currency’s value dropping.
Forward exchange contracts are ideal in corporate currency exchange because they allow you to plan in advance and add an aspect of stability. In some cases, depending on the currencies you’re trading in, you can sign these contracts for up to 10 years. If not trading in major pairs, the FEC can last up to 12 months.
Currency options are the same as forward contracts because they lock in the spot rate. But unlike the FECs, currency options give you a choice.
If you’re buying something in Italy and the euro takes a nosedive right before the sale, you can exercise an option to buy the euros a the older, higher exchange rate.
The problem with using financial instruments like contracts and options to hedge currency risks is that they can be expensive. You may need to pay premiums to purchase them, and the more you trade internationally, the higher the costs become.
The above-mentioned mitigation methods require that you hedge, meaning you save up financial resources that you will use with these instruments.
But you don’t always need to use financial instruments to hedge. You can hedge naturally by funnelling your preferred currency back into your business without having to exchange it.
For instance, if you sell a product in Italy, you can use the amount obtained in that trade to pay off another supplier in the Netherlands using the same currency.
To do this, you would need to set up a foreign currency bank account or use online services like Pay iO that allow you to set up accounts that can handle different currencies. Going this route will save you the trouble of managing different foreign currency accounts.
How to Choose the Right Corporate FX Specialist
Every business has unique needs and requirements to consider when choosing a foreign exchange specialist. You need to consider each service’s features and benefits and match them with your business to see how they fit in.
Some of the factors that you should consider to make this endeavour as fruitful as possible for your business include the following;
Safety and Security
Your money is at risk here, and you can’t afford to work with a service that doesn’t take safety and security seriously. You should only work with providers that are FCA authorised in the UK and deploy the best and the latest security features and practices to maximise safety during transactions.
Always go for business FX specialists that have been around for many years and have instilled trust in their customers and partners. You can tell this by the number of positive reviews that these providers have. The more the positive reviews, the higher the reputation of the provider. We recommend reviewing third-party review websites since these have better-regulated and verified reviews.
Rates and fees
Corporate FX specialists make their money through premiums and rates. You should pay special attention when looking at the fees since a difference of a cent could greatly impact your bottom line. Also, go for providers that offer competitive exchange rates because these can save you up to 50% or more compared to banks.
One of the main reasons businesses go for corporate FX providers is for hedging. So you should pick one that offers various hedging tools and for various currencies to help you make the most out of the service and also maximise your savings.
Every business can benefit from a hands-on approach and the occasional guidance, especially if they’re not experienced in hedging and dealing with foreign currencies. Dedicated corporate FX services should assist, follow up, and guide businesses on hedging and advise on the best trade time.
Online business platform
Go for business FX specialists that have an online platform that allows you to conduct business and track your account any day and at any time. An online business platform is a crucial tool to have. It saves you time and gives you access to funds and insights when and wherever you need them. It would also help if the provider has round-the-clock customer support to go with the online platform to make it easier to resolve any challenges quickly, day or night.
You will also need a multi-currency account with your provider. A multi-currency account is crucial when you’re practising natural hedging. You can use the account to receive and send payments in different currencies without exchanging them, saving your business substantial fees and differences in currency exchange.
Pay iO Corporate FX
Pay iO is a leading financial solutions provider in the UK, specialising in helping businesses maximise profits by taking advantage of emerging financial trends. Our corporate FX services give you the perfect partner to help you spread your wings across the border.
Why You Should Work with Pay iO Business FX
We provide extensive features to support businesses requiring Forex support. With our extensive knowledge and robust features, we can provide businesses of different sizes and experience with tailored solutions to help them make the most out of current foreign exchange situations. Some of the reasons you should work with us include;
With Pay iO’s multi-currency account, you can access over 130 currencies through your phone app, web portal, or relationship manager. You can make payments and receive payments in multiple currencies allowing you to choose currency pairs that are less expensive or pay suppliers in the same currencies without the need to exchange.
Highly accessible multi-currency accounts mean you can send and receive payments at any time of day or night, and you’re not limited by business hours.
Protect and maximise profits
Our hedging offerings are tailored to suit your needs and ensure clients can mitigate the risks of currency fluctuations from negatively impacting their businesses. Customers can rely on a wide range of hedging options to stabilise foreign exchange and protect their profit margins.
Dedicated relationship managers
For businesses that are still trying to understand the complex world of foreign exchange, we assign every business a relationship manager that helps and guides the business, ensuring they make the right decisions and take the most advantage of current market conditions to their benefit. Our relationship managers have extensive knowledge of the financial and Forex market and will provide you with accurate information to help you make the best decisions.
We will also help you stay updated with the latest currency moves and economic data through regular market updates. This way, you have all the knowledge you need to manage your multi-currency account and plan for the best time to exchange currencies.
Peace of mind
We work with trusted and regulated liquidity providers who are authorised by the FCA, so you have peace of mind when transacting with familiar and highly reputable partners.
Run your business anywhere in the world
It doesn’t matter where your business ventures take you; we support payments to over 180 countries through same-day settlement, SEPA and SWIFT features. We give you complete flexibility to source and make the best decisions for the success of your business.
Our offering, your name
We know how crucial it is to operate using your business name. So we provide you with a named, virtual multiple-currency account so your customers know they are making payments to you and suppliers know when they receive money from a business.
You also get the comfort and convenience of operating everything from one convenient and easy-to-access location.