Pure Commerce, an international payment solutions provider, today announced that it has signed an agreement with Korea Exchange Bank (KEB), to provide multi-currency pricing (MCP) services to online merchants in South Korea.
This is the first time MCP services have been made available in the South Korean market.
KEB is the largest foreign exchange bank in South Korea. Its online merchant clients found that foreign customers were getting frustrated with the currency confusion that arose when they made a purchase in Korean won, but the local currency conversion on their credit card statement did not match their expectations.
Pure Commerce's Pure Foreign Exchange (PFX) MCP service takes the guesswork out of it for them. KEB's merchants will now be able to convert online credit card payments made by foreign customers from Korean won to their home currency at the time of purchase. Website visitors simply select the country they are from or the currency they want prices displayed in, then the purchase is charged in the selected currency.
"In the online market place, customers want a local experience regardless of where the merchant is located," said Yong Cho, country head, South Korea for Pure Commerce. "PFX gives online merchants the opportunity to offer this to them. It provides shoppers with an enhanced online shopping experience, by seeing prices in a familiar currency rather than having the hassle of converting currencies themselves."
Not only do these services benefit shoppers, online merchants now have a greater opportunity to reach a wider customer base by instantly pricing goods in foreign currencies. Selling in local currencies allows them to exploit new markets and gain competitive advantage by providing a localised service on a personal level.
At the same time, PFX allows online businesses to receive revenue in Korean won, without the foreign exchange rate risk associated with selling in multiple currencies. The sale price is converted based on current exchange rates that are guaranteed from the time of purchase to the time of settlement.
"PFX gives online businesses the peace of mind by fixing the exchange rate before the sale occurs," said Mr Cho. "If the currency fluctuates between the time of sale and the time they receive the funds, their bottom line will not be affected."
This deal is an extension of a relationship forged during an Australian Trade Commission (Austrade) initiated trade mission by Pure Commerce to South Korea in 2006, which was undertaken to assess the viability of the market for its suite of payment solutions. Both companies successfully introduced outsourced dynamic currency conversion (DCC) services to merchants in South Korea in 2009. This new MCP deal is a further extension to the services that KEB now offers its merchant customers in South Korea.