Top 5 Use Cases of Multi-Currency Accounts – The Fifth Really Makes You Surprising

In the previous article about multi-currency accounts, FinFan discussed the concept of multi-currency accounts, and several benefits that individual and business customers can obtain from using such accounts.

Read more:

. 4 Benefits of a Multi-Currency Account for Your Business and How to Choose the Right Provider

In this article, let us explore the top 5 practical applications of multi-currency accounts with FinFan, particularly the fifth application which might surprise you.

For over 10 years, FinFan has been providing solutions to support businesses in cross-border money transfers to Vietnam with the criteria "Faster - Safer - More Cost-Effective."

During this time, FinFan, together with its customers, has compiled data from reports on the behavior of customers engaged in cross-border money transfers, and these reports show that most of the end customers in big cities in Vietnam exhibit similar behaviors (the fifth use cases one).

1. Use Case of Multi-Currency Account for International Business Operations

This is a prime example of multinational companies with headquarters or factories in Vietnam.

Samsung's component manufacturing and mobile device assembly plants in Vietnam employ over 100,000 workers.

Annually, Samsung's payroll expenses for workers in Vietnam alone amount to 400 million US dollars.

(According to the report of FinFan about the cross-border payments market in Korea)

The following are the benefits Samsung would gain by opening a multi-currency account in Vietnam:

Reduced Currency Exchange Costs

With the support of a multi-currency account, Samsung's workers can receive their earnings into their accounts promptly and recently in Vietnamese Dong (regardless of whether Samsung transfers in South Korean Won or US Dollars).

Consequently, Samsung no longer needs to worry about the costs associated with currency conversion, as the provider of the multi-currency account has selected the most suitable fee structure for them.

Simplified Accounting

Thanks to the currency conversion system of the multi-currency account, the funds planned in the company's accounting accounts will be in Vietnamese currency.

Consequently, the accounting declaration process for the company's financial reports will become more straightforward.

Hedging Against Currency Fluctuations

In previous articles, FinFan has mentioned exchange rate fluctuations, which seem to be a nightmare for multinational business models or companies involved in cross-border payments as they greatly affect company profits (due to exchange rate fluctuations).

However, with a multi-currency account, businesses or payment-related companies in each country can own accounts in that country's currency.

For example, in the case of Samsung when used to pay salaries in Vietnam, it will be a VND account, not a USD account in Vietnam.

2. Use Case of Multi-Currency Account for Freelancers and Remote Workers

This applies to senior management of a company with branches in Vietnam, or Vietnamese freelancers working for international companies headquartered abroad.

The following are the benefits these people would gain by opening a multi-currency account in Vietnam:

Easier Payment Handling

With a multi-currency account, in Vietnam, freelancers or senior employees (assuming they work for a Korean company like Lotte, Samsung, etc., in Vietnam) can entirely receive their salaries and bonuses based on their performance for the international company in VND.

In this case, these freelancers or senior employees can use this account to make payments or cover any expenses in Vietnam without incurring additional currency conversion fees (from Won to VND or from USD to VND).

Cost Efficiency

With a multi-currency account, such freelancers or senior employees can significantly reduce their fees compared to converting currencies and opening an additional VND account for payments in Vietnam.

For example, when you open a VND account and a USD account in Vietnam, suppose you receive payment in Won, and the Korean client or company has transferred it to USD and deposited it into your USD account in Vietnam.

In this case, you would incur a fee to convert and transfer the money into your VND account at the bank where you opened the account.

Furthermore, maintaining two accounts simultaneously would lead to significant fees as the amount of money you receive increases.

Flexibility in Spending

Continuing with the above case, even if the amount is not significant, you would still need to go through complex procedures to complete the transfer into your VND account for use in paying various expenses in Vietnam.

3. Use Case of Multi-Currency Account for Frequent Travelers

This situation occurs with senior executives who frequently travel to different countries around the world.

The following are the benefits these people would gain by opening a multi-currency account in Vietnam:

Convenience

With a multi-currency account, they can pay for any services in Vietnam without incurring significant costs for converting money to VND.

Even more convenient is that if the multi-currency virtual card is integrated with QR Code payment features or connected to electronic wallets in Vietnam such as MoMo, ZaloPay, VNPay, etc., customers can simultaneously receive offers from these e-wallets when making payments at affiliated businesses.

Reduced Fees

When using a virtual card integrated with a multi-currency account, customers may incur lower charges for using the card and making international payments in Vietnam compared to the fees charged by international credit and debit cards.

Streamlined Financial Management

When using a virtual card linked to a multi-currency account, the company's financial management department can easily manage and reconcile expenses for business trips not only in Vietnam but also in many other countries.

This enables them to allocate budgets appropriately for future trips directly within the company's financial management app or software.

4. Use Case of Multi-Currency Account for E-commerce Businesses

This situation applies to merchant customers selling products on international e-commerce platforms like Amazon or eBay and importing goods from Chinese platforms like Taobao or 1688.

The following are the benefits these people would gain by opening **a multi-currency account **in Vietnam:

Merchants and Customers Convenience

By using a virtual card linked to a multi-currency account, customers can choose to pay directly in VND instead of converting to USD or Chinese Yuan on the platform.

From the perspective of an end customer, when a shop owner sets up a payment method using a virtual card linked to a multi-currency account, customers will feel more satisfied as they can pay in their own country's currency. This incurs significantly lower fees compared to using credit or debit cards for currency conversion.

Optimized Pricing Strategy

At certain times, merchants may develop pricing strategies tailored for specific markets. For instance, some products may sell better in the US market than in Vietnam (a recent example being the Khánh Trình pull-up bar featured on Shark Tank Vietnam).

In such cases, the company will need to set appropriate pricing strategies for the US market in USD. This approach will help attract more potential customers in the US for the company.

With the support of a virtual card linked to a multi-currency account, merchants can easily execute such campaigns for the US market without worrying about incurring high fees for currency conversion.

Simplified Financial Operations

Just like with accounts for frequent business travelers in a company, multi-currency accounts for merchants on multi-national platforms or e-commerce websites can also be managed solely through the shop's sales management or accounting software.

Here, the shop owner or the shop's accountant can extract revenue according to the appropriate currency for each different market.

Consequently, the shop owner can flexibly adjust marketing plans for each market along with corresponding pricing adjustments, as mentioned earlier.

5. Use Case of Multi-Currency Account for Digital Nomads

This is the surprising case that FinFan mentioned earlier: digital nomads are the ones who can benefit the most from a virtual card linked to a multi-currency account, for the following reasons:

Seamless Global Living and Enhanced Financial Flexibility

The lives of digital nomads are inherently unstable; they enjoy exploring various places while working. Therefore, it is common to see them working in one country this week and in another country the next.

For this reason, a virtual card linked to a multi-currency account simplifies their lives significantly. They no longer need to go through cumbersome procedures to open a bank account in a particular country to make payments within that country's territory. This also helps their financial lives to be more seamless and flexible, as they can hold and exchange money in their account to any required fiat currency when necessary.

Cost Savings

Like the other cases of using multi-currency accounts mentioned above, saving on currency conversion costs is also a goal for digital nomads. They do not need to spend excessively on fees incurred by exchange rates.

Suprsing Aspect: The surprising point here is that in Vietnam, major cities like Hanoi, Ho Chi Minh City, and Da Nang attract a large number of digital nomads according to the data from reports on the behavior of customers engaged in cross-border money transfers.

Digital nomads often need financial solutions that match their transient lifestyle, and multi-currency accounts offer an unprecedented level of flexibility and control over their finances.

Whether receiving payments from different countries or managing living expenses while moving from one country to another, digital nomads can significantly benefit from multi-currency accounts, enabling them to live and work anywhere without the constant hassle of currency exchange.

Conclusion about use cases of multi-currency accounts

Multi-currency accounts are incredibly beneficial for a diverse range of users, from businesses and freelancers to travelers and digital nomads. The fifth use case highlights how this financial tool can dramatically enhance the lifestyle and financial management of digital nomads, making it a surprising and valuable solution for modern, location-independent living.

This article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

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