With local payment methods, traders are able to deposit Forex funds in real-time with less risk of false declines.
Forex traders are seeking new ways to deposit funds faster and to trade with less friction. To meet their demands, brokers are increasingly accepting popular local payment methods to enable smoother, faster payments.
Forex or FX is one of the most actively traded markets in the world and the only one to trade 24/7.Individuals, companies and banks carry out around $6.6 trillion worth of Forex transactions - trading one currency for another - every single day.
Currently card transactions are the most common way for traders to deposit funds with Forex brokers.However, increasing chargebacks and the new SCA 2-factor authentication requirements, are reducing acceptance ratios and slowing trade.
In Forex markets every second counts. Having access to reliable, real-time payment methods is now a competitive differentiator for brokers and a deal-breaker for traders. Local card and digital schemes offer instant payments, fewer chargebacks and false declines and can boost approval rates especially for larger value transfers.
Brokers can attract traders with faster payments and higher acceptance
Unlike global card platforms (e.g. Visa and Mastercard), local schemes are alternative payment methods (APMs) that are typically specific to a country or region of origin. They include domestic card schemes, local electronic wallets and bank transfers.
Their use has been driven by digital commerce and most countries now have a domestic payment method that rivals traditional card schemes in terms of popularity. In Germany, for example, Girocard has a market share of 74%.
Transactions made through local payment methods are typically processed in under two seconds, allowing customers to deposit Forex funds in real-time.
With millions of Europeans already loyal to local and alternative payment methods, they can be a great way to attract new Forex traders to use your platform.
With local payment methods, traders are able to deposit Forex funds in real-time with less risk of false declines.
Europe’s most popular alternative payment methods
For those looking to upgrade their Forex trading platform with a local or alternative payment option, here’s a quick guide to some of Europe’s most popular methods accepted on Forex platforms:
· Giropay (Germany) Around 45 million German customers, representing 80% of the country’s online banking customers, already use Giropay to instantly complete payments from their bank accounts. Forex brokers can tap into its appeal to grow their German user base.
· MyBank (Italy)
The best way to attract customers in Italy is to offer MyBank which gives access to more than 40 million users. An e-authorization solution, it’s based on SEPA payments and enables real-time digital payments and secure ID authentication through a mobile app or online portal.
· iDeal (Netherlands)
iDeal is the number one e-commerce payment method in the Netherlands. Offering convenience and security, it’s the first-choice transfer method for people who bank online with the main Dutch banks. Trading accounts can be easily connected to bank accounts with pre-filled forms and transfers are instant with no associated fees or charges.
· BLIK (Poland)
BLIK is a Polish mobile banking app that is currently available to more than 90% of all domestic bank customers in Poland . With 10 million Polish users, it makes an attractive and convenient offering for Polish Forex platforms looking for a high-growth mobile payment option.
· SOFORT
SOFORT, part of the Klarna Group, is an online direct payment service trusted by more than 85 million users and available in 13 countries. It’s especially popular in Austria, Belgium, Switzerland and Germany. With SOFORT, traders can fund their broker accounts using just their online banking details. It’s much more convenient than other methods that require traders to sign up and then credit their accounts before they make a purchase.
Traders want to track, trade and pay using their mobiles
As traders increasingly use mobile devices to track and trade Forex on the go, other alternative methods like e-wallets are on the rise.
Options like Apple Pay and Google Pay provide fast, convenient, and mobile-friendly Forex deposit options compared to the likes of bank wires, which can take days for funds to arrive.
With e-wallets money is transferred immediately, with either no, or very low, fees. Trading customers can fund their forex account quickly and they can begin their trading whenever they want, wherever they are, direct from their mobile phone.
Grow your Forex business with TrustPay
Offering the right mix of payment methods is central to the success of any transaction business, Forex trading is no exception. It pays to have an experienced partner like TrustPay to help optimize your purchase platform for both international and local markets.
TrustPay can integrate a wide variety of traditional and alternative payment methods including all those mentioned above, allowing traders to manage their funds according to their own preferences.
TrustPay’s portfolio is constantly extending to help brokers expand their Forex business even further. Find a full list of its local payment methods here or contact them direct with your requests on sales@trustpay.eu
