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Trading Across Europe: How to Setup Online Multi-Currency Bank Accounts

Since Brexit, trading between the United Kingdom and Europe has been significantly impacted. The most considerable effect Brexit has presented is the increase in exchange and transaction fees associated with overseas business. To put this into perspective, PayPal, MasterCard, and Visa have all increased their interchange fees by at least 1% or more. For this reason alone, doing business with Europe from the UK (or vice versa) has become incredibly more expensive.

How Brexit has affected trade across Europe

Apart from transportation problems becoming apparent from couriers crossing the UK and EU border, the increase of fees linked to Brexit have been drastic to companies that perform overseas transactions.

In 2019, the UK was the largest e-commerce market in Europe by 19.4%. Previously, the costs connected to these sales (in terms of transaction fees) from MasterCard would have been €3.93 million during that year. However, from October 2021, these transaction fees will cost merchants an estimated €20.48 million, which is a dramatic increase. Additionally, the exchange rates between the currencies also took a downward turn.

Month

Before Brexit GBP to EUR Exchange rate (2018)

After Brexit GBP to EUR Exchange rate (2020)

January

1.13

1.18

February

1.14

1.18

March

1.13

1.15

April

1.14

1.14

May

1.13

1.14

June

1.14

1.12

July

1.13

1.11

August

1.12

1.11

September

1.11

1.12

October

1.13

1.10

November

1.14

1.11

December

1.12

1.11

Source: Statista

After seeing the above, it can quickly determine how Brexit has negatively affected trade between the UK and EU. But does this mean exports and imports between the European Economic Area (EEA) is coming to a halt?

Is it possible to make trading with Europe accessible again?

After reading the above, it can seem like trading with Europe will soon come to a halt. However, there are solutions that can make the situation a lot less harmful. Currently, the most affordable way to send money internationally and to Europe is through a multi-currency account. But, what exactly are they?

What is a multi-currency account?

A multi-currency bank account allows the user to receive, pay, and hold multiple currencies. Doing this enables the consumer to make much cheaper transactions in terms of fees and exchange rates to countries around the world. Undoubtedly, this is a perfect bank account for managing multiple international currencies and transactions in a singular place.

Any company that trades with a country they’re not native to should consider using a multi-currency account. By achieving this, you’ll increase profits, make overseas transactions more seamless, and manage various currencies within a single account.

Why you need to consider Monneo’s IBAN accounts

To make the processes even more flawless, you’ll want to consider Monneo’s online IBAN account. They’re a virtual IBAN provider that’s partnered with many different UK, European, and international banks to demolish the trading difficulties Brexit has presented. From opting into their multi-currency software, you’ll be gifted the following benefits:

  • Increased profits – Maximise profit with reduced administrative, transaction, and exchange fees while expanding into new markets globally
  • Minimised errors – Helps manage, consolidate, and monitor transactions from an array of different clients worldwide, making data much easier on the eye
  • Better efficiency – Save a tremendous amount of time on processing international payments by operating transactions and deposits from a singular account

The abundance of different benefits you can obtain from using a Monneo IBAN multi-currency account is astonishing. To better understand what an organisation can expect when implementing this into their overseas trading communications, we recommend you take a look at their latest article on multi-currency merchant accounts.

How to get started with Monneo

The company itself, Monneo, wants to provide simplicity throughout their services from start to finish. Therefore, opening an IBAN multi-currency account is relatively straightforward. Here’s what you need to know:

  • Setting up your account – When you want to apply for an IBAN account from Monneo, you’ll first need to see if you meet the below criteria. Perhaps you do, great. To set up your account, you’ll need to head over to their services page. Once here, you’ll need to click “Open today” and load the next page. It’ll now showcase an application form which you’ll need to complete and send to Monneo, so they can review if your organisation is the best consumer for their product. After acceptance, a representative will contact you and provide you with the additional information needed to get your account running.
  • The requirements – Monneo wants to help as many people as possible by lowering overseas transaction costs. However, a singular requirement is needed for them to accept your application form: you must have a registered company. The Authorised Payment Institution understands that registered companies need help. Therefore, allowing them to set up multi-currency IBAN accounts can help restore international transactions.
  • How the portal looks like – After you’ve been accepted, the portal itself is simplistic. It consolidates all the currencies you have stored within the account and showcases them in an easy-to-understand format. You’ll see what currencies are on the account, how much is stored, and recent transactions from a single sight.

Why choose Monneo?

After reading the considerations and the guide to getting set up with Monneo, you should be able to justify why you should choose them. However, what truly makes them stand out from their competitors? Here’s what you need to know:

  • All virtual IBANs of a merchant are easily accessible through a single platform, making international transactions much more seamless, reducing administrative fees
  • The knowledge showcases about the industry from Monneo is impeccable, as they understand the exact fear, worries, and solutions organisations are searching for that perform overseas trading
  • They have a network of banks that they’ve partnered with in the UK, Europe and various other popular international locations to guarantee they offer multi-currency services with currencies that matter
  • Lastly, they’re regulated by the Financial Conduct Authority (FCA) in the United Kingdom as an Authorised Payment Institution

After reading the above, you should have a comprehensive idea of how Brexit has affected trade between the UK and Europe, along with the most prestigious solution that can revitalise this type of business once again. If you’re interested in setting up an account with Monneo, you can find out more information on their website https://www.monneo.com/

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