Empowering Currency Cloud, A Fintech Platform, To Access Markets With Restricted Currencies

7 Minute read
3 years ago


Founded in 2012, Currencycloud is an embedded payment service provider facilitating cross-border payments. Currencycloud offers payment infrastructure, foreign exchange, and international payments to business entities.

Based in London, Currencycloud has processed more than $65 billion to over 180 countries while working with banks and Fintechs across the world.

Nium is working with Currencycloud to support currency conversion and enable seamless cross-border transactions in four restricted Asian currencies.

“Partnering with Nium to integrate these four restricted Asian currencies has saved us a lot of time and effort expanding our network of currencies.”

Todd Latham, Chief Growth Officer

The Challenge: Navigating restricted currencies

Payment service providers like Currencycloud face a common hurdle — the lack of a smooth cross-border payments system. This issue becomes even more complex if the geographies in question are those with restricted currencies. Across Asia the reporting of cross-border transactions differs from one country to another, so businesses in these nations can only trade through an entity approved by the local regulators [1]. Trading in these countries with restricted currencies, therefore, is not only expensive but also inconvenient and time-consuming.

As no single bank operates across all these corridors, Currencycloud would have had to integrate with up to 4 domestic banks to offer the same functionality to their clients. However, with Nium, they can achieve the same coverage with one simple integration.

Tackling currency rate fluctuations

Unlike in Europe, Asia-Pacific countries don’t have a collective group that provides a regulatory framework to follow and each country has its independent policies concerning financial regulations. Western businesses can find it challenging to work within local currencies. Therefore, currency control becomes yet another challenge payment providers face in cross-border trading. Such businesses have to pay some implicit or explicit fees in addition to international payments [2].

 Currency controls usually require the banks to trade within market hours only, especially in India. In certain markets, banks don’t provide FX rates outside of market hours or for commercial reasons considering the high volatility of these currencies.

Nium offers Currencycloud rates outside of market hours. Additionally, Nium also takes on the risks associated with currency movement between the close of business one day and the opening of the market the next business day.

Improving transparency and traceability of transactions

Security is one of the essential factors when handling sensitive client information. It becomes much more crucial in markets with convoluted regulatory requirements. Enabling safer cross-border transactions with enhanced traceability in Asian markets was an important goal for Currencycloud.

It not only became possible with Nium’s robust platform, but their clients now also enjoy the ability to convert back funds in case of payment failure. Given the scrutinizing local laws, this would have been difficult had they tried to access markets with their own banking integrations.

Why Did Currencycloud Choose Nium?

Nium’s global network enables Currencycloud to create an expansive network of licenses, payment modes, and banking relationships in the restricted Asian currencies. This benefits Currencycloud’s objective of expanding into new markets. With Nium’s service, businesses like Currencycloud can send payments to 55+ countries with improved tracking and visibility of transactions.

Nium’s products are backed by a world-class compliance network and its innovative platform comprising 10 licenses worldwide. Thus, Nium enables businesses to:

  • Design custom payment flows
  • Ensure timely payments with 24/7 processing
  • Move from multi-leg payments to point-to-point with Nium’s local ACH networks
  • Save on small payouts and cross-border payments
  • Enable multi-currency fund transfer to vendors and suppliers with multi-pocket/wallet spend management features
  • Control FX conversion rates on cross-border transactions

 How has Nium helped Currencycloud?

Nium’s revolutionary platform has transformed various businesses across sectors. Here’s how Currencycloud benefitted from Nium’s services.

 Faster and secure cross-border payments

With Nium’s secure payment rails, payouts are safe and transaction reviews are quick, unlike bank transfers. Transactions can be approved in real-time; funds can be sent to the beneficiary’s cards in multiple currencies. This is a huge advantage to Currencycloud in terms of establishing their hold in the diverse Asian markets.

Access to restricted currencies

To be able to transact payments in the four Asian restricted currencies is priceless. They were able to achieve this with one simple integration which would have required multiple integrations otherwise. Nium’s domestic banking networks have been a huge contributor to Currencycloud’s entry into these markets.

 Advanced FX capabilities

Nium has provided Currencycloud with excellent currency flexibility. Currencycloud’s clients now have the ability to convert 24×7 without having to worry about market hours. This is especially beneficial considering the difference in time zones between the clients and the markets. Additionally, it also benefits them with better FX rates even outside of local market hours.

Superior security

Apart from offering the best FX rates, Nium also manages any risks associated with currency movements between the close of business hours and the opening of markets the next business day. Nium’s platform is DSI compliant and all transfers are end-to-end encrypted, which enhances the safety and transparency of transactions.

More About Nium:

Nium, formerly known as InstaReM, began in 2015 to simplify and optimise cross-border payments. We eventually scaled the offering to serve SMEs and businesses in multiple industries.

Today, Nium utilises radically innovative technology that makes spending, receiving, and managing funds faster, cheaper, and more transparent. It’s designed to integrate with our customer’s lives and business needs seamlessly.

We have experts on the ground working with local regulators and financial institutions. With offices worldwide, we are in a position to foster these relationships.

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