Multi-currency Account: How It Helps Businesses Work With Customers Around the World

Today, many Ukrainian sole proprietors and companies, IT professionals, online stores, and various agencies are actively working with foreign clients. When a business expands beyond Ukraine’s borders, questions immediately arise: how to accept payments without unnecessary problems, how to minimize currency exchange losses, and how to simplify calculations? This is where a multicurrency account comes in.

In this article, we will examine what it is, how it works, and why it is now essential for anyone who works globally. We will discuss the advantages, various use cases, and compare a multicurrency account with a traditional bank account. We will also provide practical advice to help you start receiving payments from abroad.

What is a multicurrency account in simple words?

A multi-currency account for business is a single account where you can store, send and receive money in different currencies, instead of opening separate accounts in different banks for each currency.

Why has it become the standard for global businesses?

A multicurrency account makes life much easier for entrepreneurs: you save money because you don’t lose interest income on constant currency exchanges, but keep euros or dollars in your account until you need them. It also provides some flexibility, as you can remunerate contractors and suppliers in their local currency, which improves relations and speeds up payments. You can also protect your finances from sudden jumps in the exchange rate because you don’t have to convert money instantly. Many businesses, for example, track the Payoneer dollar to hryvnia exchange rate,  so they can plan the optimal time to convert funds.

Instead of balancing a bunch of different bank accounts, you can manage all your finances in one place, which makes reporting easier, especially if you use an online foreign exchange account. The bonus is that working with the local currency abroad makes your business appear more solid and professional in the eyes of partners.

How does a multicurrency account work?

A multicurrency account for a company from Payoneer is an electronic wallet that allows you to manage funds in different currencies as if you had local bank accounts in several countries. It eliminates the need for Ukrainian entrepreneurs to open physical accounts abroad, as the entire process is managed through a single online account.

Local details in major currencies

One of the key features of a multicurrency account is the ability to get your own details for payments in different currencies. These are details that resemble those of a local bank account, and can support USD, EUR, GBP, CAD, JPY and other currencies. Thanks to this, customers or marketplaces can make domestic payments without incurring international transfer fees.

Support for local payment methods

Customers can pay invoices through popular local systems directly into your multi-currency account, which speeds up the receipt of funds and reduces costs:

• ACH for transfers in US dollars from American companies.
• SEPA for payments in euros within the EU (usually 1–2 business days).
• BACS for payments in British pounds in the United Kingdom.

SWIFT transfers for other currencies

If the client works with currencies that do not support local payment methods (e.g., AUD or THB), they can use SWIFT. Payments typically arrive within 1-4 business days. This is convenient when the business receives payment from less common regions.

Currency management and conversion

All payments are credited to your account, but are stored separately for each currency. You can:

• view transaction history in the web panel or mobile application,
• convert currencies (the rate is fixed for a few minutes),
• withdraw funds to a bank account in Ukraine or pay for contractors’ services.

The conversion fee can be lower than with traditional banks, and the process is almost instantaneous online.

What business problems does a multicurrency account solve?

A multicurrency account helps in the situations described below.

1. Receiving payments from customers from different countries
   A multicurrency account allows you to accept money from clients in different currencies without unnecessary fees. For example, a Ukrainian design studio can provide an American client with details in USD and a European client with details in EUR. Payments are received quickly, and there is no need to pay for international SWIFT transfers.
2. Paying suppliers in their currency
   By holding funds in multiple currencies within a single account, a business can pay suppliers’ invoices in their respective national currencies. For example, a small Ukrainian startup ordering components from China can pay directly in CNY, while freelancers from Germany can pay in EUR, reducing conversion costs and speeding up payments.
3. Easy connection to international platforms
   Many marketplaces and ad networks prefer payments to a local bank account. Using the Payoneer API, a multi-currency account lets you connect to these platforms quickly. For example, a freelancer from Kyiv receives payments from clients in the USA and Europe directly into their account, without any delays.
4. Control over currency risks
   The ability to hold funds in different currencies allows them to be converted at the best time or stored for future payments. For example, a company importing goods from Europe can hold EUR in an account until the exchange rate between the dollar and the euro becomes favorable for conversion.
5. Convenient management of international finances
   Fintech multicurrency accounts enable all international financial flows to be kept in one place. For example, a marketing agency in Odessa can track revenue from multiple marketplaces and advertising platforms and easily report to investors without the confusion of currency conversions.

Comparison: Multi-currency account vs. classic bank account

A multicurrency account and a traditional bank account differ significantly in the context of international business. Here is a comparison of the main characteristics:

Criterion	Multicurrency account	Classic bank account
Speed	High. Local payments (ACH, SEPA) usually in 1–2 days.	Medium/Low. International SWIFT transfers can take 1 to 5+ business days.
Tariffs	Typically low or no fees for receiving local payments. Transparent conversion fees (around 0.5%–2%).	Often high fees for international incoming/outgoing SWIFT transfers. Conversion rates may be less favorable.
Currencies	Support for several key global currencies (USD, EUR, GBP, CAD, JPY) with local details.	Limited foreign currency support. Typically one main account.
Convenience	High. A single online platform/app to manage all currencies and transactions.	Depends on the bank. Often requires visiting a physical branch or using less intuitive systems.
Geography	Global availability. The ability to work with customers and suppliers around the world without a physical presence.	Limited. Usually tied to the country of opening. Opening an account abroad may be difficult or impossible.
API	An API is often offered to automate payments and integrate with business systems and e-commerce platforms.	The API is available mainly only to large corporate customers.

How to open a multicurrency account: step-by-step instructions

Opening a multicurrency account is usually not difficult, but each stage has its own nuances. Below is a step-by-step guide to help you go through the process without unnecessary delays.

1. Account registration. First, you need to create an account on the chosen platform. The procedure is quite simple: fill in your contact details, provide information about yourself and the form of business. It sounds simple, but it is crucial to select the correct profile type, as further document verification for individual entrepreneurs or companies will depend on it.
2. Business verification. After registration, the system will prompt you to complete verification. This is a common practice for financial services that operate under KYC rules. If you are an individual entrepreneur, you will be asked to upload an identity document and an extract from the Unified State Register. The company must provide constituent documents and information about managers and beneficiaries. Sometimes, the support service will request additional details, but this is a regular part of the procedure, so it is worth having such materials readily available.
3. Currency selection. After confirming your account, you will have access to the control panel. Here you can connect the currencies you plan to work with. The most popular ones are available, such as US dollars, euros, pounds, Canadian dollars, and Japanese yen. Choose them for your markets: sometimes two currencies are enough, and sometimes you may need to activate the entire set.
4. Connecting details. When currencies are activated, the platform generates its own details for each. For the US, this will be the account number and routing number; for Europe, SEPA bank details. Now, your customers can send local payments without commission.
5. Test international payment. Finally, it’s worth making a test transfer. Send your client or partner the details of one of the currencies and ask them to make a test payment. Once the funds are credited, you’ll know everything is working as it should, and you can proceed with the real work involving international payments.

Advantages of a multicurrency account for global business

Advantage	What does this do for business?
Smaller commission	Using local bank details (SEPA, ACH) significantly reduces or eliminates high fees for international transfers.
Less bureaucracy	Fully digital registration and verification process, without the need to physically visit a branch abroad.
Simple international payments	International transfers become as easy as domestic ones. It’s easy to pay suppliers and freelancers in local currency.
Ability to work in different markets	Multi-currency accounts (USD, EUR, GBP, CAD, JPY) allow you to accept payments from global marketplaces and from customers in a convenient currency.
Multicurrency cards	Physical or virtual cards enable online payments for advertising campaigns or cash withdrawals worldwide at a transparent rate.

Risks and limitations to be aware of

Using a multicurrency account offers numerous opportunities in the international market, but it also entails certain limitations and risks. Understanding the following aspects will help to avoid unexpected problems and ensure stable work with global payments.

Legal and regulatory risks

• KYC/AML checks. Fintech platforms must comply with international financial monitoring standards, including AML regulations. This means regular customer due diligence, which may include requests for confirmation of the source of funds, information about the business’s beneficiaries, and the purpose of transactions.
• Blocking accounts for suspicious activity. Due to strict AML requirements, platforms may temporarily or even permanently block an account if they detect unusual or suspicious transactions.

Financial and operational risks

• Currency risks. You can hold funds in different currencies on a multicurrency account, but their value may fluctuate due to exchange rate changes. This can lead to unpredictable financial losses during conversion, mainly if the business regularly conducts large international transactions.
• Transfer limits. Some platforms set limits on daily, weekly, or monthly transfers and card cash withdrawals. For businesses with large turnovers, such limits can be inconvenient.

Tax nuances

All income received from foreign sources is subject to declaration under Ukrainian law. A multicurrency account requires meticulous bookkeeping, accurate accounting of exchange rate differences, and thorough documentation of currency transactions. Failing to comply with these rules may result in fines or tax penalties.

How to minimize risks

To reduce the likelihood of these problems, it is essential to choose reliable and proven platforms, such as Payoneer, which has extensive experience working with Ukrainian businesses. It is also recommended to regularly monitor updates to the platform’s policies and changes in legislation, ensuring that your financial transactions remain secure and you can continue to work with clients worldwide.

Frequently asked questions (FAQs)