The United Nations World Tourism Organization estimates that by 2030, international tourist arrivals will exceed 1.8 billion annually, which translates to a robust, yet consistent market demand for foreign exchange transactions.
Boston, MA (PRWEB) February 19, 2014
As international travel is expected to continue to grow in the coming years, dynamic currency conversion (DCC) solutions are becoming increasingly attractive to retailers and financial institutions around the world. Today, DCC solutions are sparking industry interest for payment card transactions at both the physical and virtual point of sale and at automated teller machines as the payments industry looks for means of increasing revenue while providing potentially significant value added benefits to consumers. Mercator Advisory Group’s latest Research Note, Dynamic Currency Conversion: A Growing Global Opportunity, examines DCC and the potential it holds for issuers, merchants, and consumers around the world as well as issues that could limit its growth. The Note profiles leading DCC solution providers.
Designed to benefit issuers, merchants, and consumers alike, dynamic currency conversion, or DCC, is a service that leverages the global nature of the card networks to provide eligible cardholders the ability to convert their selected transaction into a chosen currency at a competitive exchange rate. For merchants, one of the benefits of incorporating a DCC solution is that it can noticeably reduce the number of potential disputes brought by consumers. For financial institutions the benefits of incorporating DCC revolve around improving merchant and treasury services amongst others. However, DCC most importantly can improve the payment process for consumers outside of their native countries by providing increased convenience and confidence with each transaction.
“In recent years, industry buzz about dynamic currency conversion has amplified. The reason is clear: DCC is emerging at a perfect point in the global payment industry’s evolution. In 2014 and for the foreseeable future, international travel is expected to rise. The United Nations World Tourism Organization estimates that by 2030, international tourist arrivals will exceed 1.8 billion annually, which translates to a robust, yet consistent market demand for foreign exchange transactions,” comments Tristan Hugo-Webb, Associate Director, International Advisory Service at Mercator Advisory Group and the primary author of the note.
Highlights of the report include:
- Global and regional estimates for international travel in 2014
- An explanation how DCC solutions work and how these solutions can benefit retailers, financial institutions, and consumers
- An overview of some of the potential issues around consumer use of DCC and the way that the possible Visa Inc. and Visa Europe merger could affect DCC
- Profiles of leading DCC solution providers
This report contains 13 pages and 2 figures and 2 tables.
Companies mentioned in this report include: Euronet, MasterCard, Monex, SIX Payment Services, Visa Inc., and Visa Europe.
Members of Mercator Advisory Group’s International Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.
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About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.