Trying to do my part to improve the state of the economy, I went to the mall to treat myself to some new clothing and jewelry. As I waited in line to pay for my purchase, a woman in front of me with limited knowledge of English asked me the cost of the item she had in hand. I thought that she couldn’t read the price ticket so I rattled off the price. She apologized and said she could read the tag but didn’t know if it was a "good price."
I realized that the real issue at hand was that the price in US dollars wasn’t meaningful to her as she was only familiar with Japanese Yen. In the end, she left the store without purchasing anything. How unfortunate for both the woman and the store!
To put this in perspective, just imagine wanting to buy an item and being told that the cost was 150,000 Japanese Yen. Is that a good price? What does that mean to you in dollars and cents? You’d need to perform complex mathematical formulas in your head to understand -- way too difficult for me.
Going back to my story above, if the store had implemented dynamic currency conversion, the woman would have been offered the opportunity to pay in a familiar currency and she would have walked out of the store satisfied and ready to shop there again in the future.
Dynamic currency conversion
Dynamic currency conversion gives consumers the opportunity to pay in their local currency. It gives consumers complete visibility into the real cost of goods and services before they complete a purchase.
In addition, it offers businesses the opportunity to generate an additional annual revenue stream that can be very significant. Businesses that offer dynamic currency conversion continue to grow as they attract worldly consumers with a more relevant shopping experience.
If you have customers whose association-branded credit cards were issued in different currencies, dynamic currency conversion can help keep them from walking away dissatisfied and empty handed.
Dynamic currency conversion is easy to implement, benefits both merchants and consumers, provides additional revenue opportunities and often pays for itself in three to six months. Sound like a no-brainer?
We think it is.