A concept that economists have termed globalisation has become de facto, reflecting in almost every aspect of human existence. The internet has made the world smaller each year, from our media consumption to communication and how we conduct business.

This globalisation is what has made cross-border interactions and transactions non-negotiable for businesses.

Like never before, businesses can interact with customers, make transactions, and interact across borders.

Although this might look daunting, enabling cross-border capabilities for any business is essential to long-term success.

Let’s use payment as an example. Being able to transact internationally as a business will give you access to global customers, help you keep up your commitment to international partners, etc., all of which are drivers of long-term business success.

Cross-border transactions have become the cornerstone of business operations in this decade. In 2023, the global value of cross-border payments was around $190.1 trillion, with projections expecting an increase to $290.2 trillion this decade.

This is why an international business account is important for businesses.

This article explores the meaning of international business accounts, why businesses need them, how they can get one, and the benefits.

An international business account is a special type of bank account businesses use for cross-border transactions. This account allows businesses to send, receive, and hold money in foreign currencies.

An international business account differs from a regular business account in several ways. International business accounts support multiple currencies, while a regular business account typically supports only the local currency. Because of its local currency capability, a regular business account cannot be used for cross-border transactions, unlike an international business account.

There are different types of international business accounts and different ways to get them; 

Banks 

Businesses can get international business accounts from traditional banks, offshore business accounts opened and operated in a foreign country, and single-currency accounts in a foreign currency. 

However, these international business accounts from banks still rely on traditional banking systems, which are slow and expensive for cross-border banking. 

Foreign exchange (FX)  services

FX services offer international business accounts. FX services can offer international business accounts through multicurrency accounts, facilitating faster and more cost-effective transactions. 

International payment platforms

Fintech companies like Fincra, Wise, etc, also offer international business accounts, mostly with multicurrency accounts. 

An international business account facilitates faster and more cost-effective international transactions because of its features. 

First, it supports multicurrency capabilities, enabling businesses to hold and transact in multiple currencies with an account. 

This capability also reduces currency conversion and associated fees, making cross-border transactions quicker, more efficient, convenient, and less expensive for businesses. 

Access to the global market 

International business accounts enable businesses to sell to a global customer base and improve their bottom line.

This global business banking capability also means businesses can send money anywhere, ensuring they can access global products and services from the international market to improve their offerings. 

Fincra supports international business account capabilities for business through our Multicurrency Account product offered through API and via the Merchant Dashboard. 

With our Multicurrency Account API, FX services and fintech can issue international business accounts to businesses on their platform.

With Fincra’s Multicurrency Account API, platforms can issue local currency accounts in addition to USD, GBP, and EUR accounts. 

Via the merchant dashboards on Fincra, businesses can generate international business accounts (Multicurrency Accounts on Fincra) to send, receive and manage foreign currency transactions. 

Fincra’s Multicurrency Account gives businesses complete international banking features such as ACH, SWIFT and local payment rails.

Fincra’s Multicurrency Account offers international business accounts, enabling businesses to receive customer payments from anywhere in the world. Businesses can make global business-to-business payments in currencies like USD, EUR, and GBP.

This account simplifies cross-border transactions for businesses across Africa, enabling them to compete on the global market.