Pleo, an innovative spend management platform based in Europe, has introduced multi-currency accounts to simplify global spending and cut down on foreign exchange fees for businesses.
With Pleo’s new feature, companies can now hold and utilize up to six currencies from a single card, making cross-border transactions more straightforward and cost-effective. The system automatically identifies the transaction currency and withdraws funds accordingly, allowing businesses to transact directly in local currencies, avoid FX fees, and manage multiple currencies with ease.
Enhancing International Spending
Foreign exchange (FX) fees can significantly impact small and medium-sized enterprises (SMEs), potentially diminishing annual profits. These hidden costs often disrupt cash flow and compress profit margins, posing a financial burden on European businesses.
Recognizing the growing trend in cross-border payments, which are expected to reach USD 250 trillion by 2027, Pleo is addressing this challenge through multi-currency accounts supported by Mastercard, Banking Circle, and Enfuce. These partnerships provide businesses with the necessary flexibility to operate across markets while shielding against substantial FX fees.
Mastercard enables Pleo customers to manage a single card that automatically detects transaction currencies and withdraws funds from the appropriate account. Banking Circle offers an FX API, facilitating currency purchases and sales between accounts to ensure businesses have the correct funds available in different currencies. Enfuce supports the backend infrastructure needed for multi-currency management, enabling companies to handle local balances, conduct cross-border spending, and support global expansion.
In a related development, Pleo plans to roll out additional automation features later this year. These advancements will empower businesses with greater control over their cash flow through automated transfers. Companies can set rules to transfer surplus funds into high-interest savings accounts when necessary. Additionally, they will be able to create seamless triggers for currency conversions, such as automatically selling GBP to buy EUR, thereby eliminating the need for manual intervention.
