What is a Multi-currency Wallet? (Quick Guide)

While you can’t control exchange rate fluctuations or where your clients or customers are located, you can certainly make handling multiple currencies more effective.

Nothing makes cross-border currency management easier than a multi-currency wallet, and we’re going to show you why that is.

We’ll also go over how Wise Business accounts provide support for multiple global currencies and make your personal and professional life easier.

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What is a multi-currency wallet?

On a basic level, a multiple-currency wallet is a digital solution that lets you store, convert, send, and receive money. It acts like an online bank in some ways, where you can access your cash through your account, but has the benefit of holding several currencies and not just your local currency.

Whenever the need strikes, you can transfer money between your CAD balance and USD balance, for example. It makes handling money much more convenient, where you won’t need to open several dedicated currency accounts at different institutions.¹

What is the difference between a multi-currency account and a wallet?

You can think of the difference between a multi-currency account and a multi-currency wallet much like the differences between a wallet and a bank account.

At this point, multi-currency wallets and multi-currency accounts are the same. Industry leaders simply use different terminology to describe their products. It’s important to understand what features your business requires before committing to a multi-currency wallet or account. Some features may include accounting integrations, certain currency types, payroll features, and many more. You may want to also search for both terms and also the term FX wallet, which also falls into the same category. Through doing this, you will get a better understanding of the providers on the market and the different features they have.

How does a multi-currency wallet work?

Multi-currency wallets typically start by providing a place to store your local currency and give you the option to open a variety of other currencies, like EUR, GBP, CAD, etc. depending on what you need. You can have balances in all of these currencies at the same time in one place, eliminating the need to deal with multiple wallets or accounts and having to externally exchange money with banks at high rates.

What are the benefits of a multi-currency wallet?

Every multi-currency wallet is different, but they generally come with the following benefits:

• Lower costs – Compared to traditional financial institutions, wallets often come with the plus of fairer exchange rates and lower conversion fees. Especially if you make frequent international transactions, you can avoid racking up unnecessary fees.
• Convenience – The convenience is two-fold with multiple-currency wallets, as you can consolidate all your funds in one place and be able to send and receive payments in different accounts no matter where you are in the world.
• Faster transactions – Banks typically rely on the SWIFT network for international transactions, which can be relatively slow for transfers. Transfers take around 1 - 5 business days to process, which can be a pain if you initiate one on a Friday.

Best multi-currency wallets for businesses

To get you started, here are some top picks:

1. Wise Business

Wise Business is a money service provider (MSP). Known for its simplicity and low fees, Wise is an excellent choice for international businesses who want an international account with clear and transparent exchange rates and global money transfer services.

Features

2. Airwallex

Airwallex is another international payments platform that helps businesses manage multi-currency transactions and make transactions all in one place. The service is particularly useful if you’re an ecommerce seller, as it has built-in shopping plugins that allow you to streamline your order and sales data from platforms like Amazon, Shopify, and WooCommerce.

Airwallex also has a variety of customizable packages and embedded finance tools if you’re looking for more. Pricing-wise, FX conversions are marked up 0.5% - 1% above the mid-market rate depending on the currency.⁶ However, there are no monthly or recurring fees associated with an account.

3. Payoneer

Payoneer is a solid multi-currency wallet solution for businesses looking to scale. The platform segregates solutions for small and midsized businesses and marketplace or enterprise businesses. While it has all the features of a classic account, such as support for 70 currencies, it differentiates itself with tax and global workforce management tools and marketplace-dedicated options.⁷

Payoneer has a selection of fees that can be complicated to navigate, with a variety of fixed fees and percentage fees depending on whether recipients have a Payoneer account or not, where you and the recipient is located, and more.

Summing up: Picking the best multi-currency wallet for your business

Making the move to manage your finances with a multi-currency wallet can completely change the way your business operates. With more flexibility, lower fees, and increased convenience, you can simplify your financial operations. As long as the provider you choose offers all the features, currencies, and security measures you need, you’ll be well on your way to running a high-functioning and future-proofed business.