Currency Stream is a London-based payments operator that helps customers pay for goods and services in their own currency no matter where they or the merchant are in the world.
Its proprietary technological algorithm has facilitated more than $10billion in transactions across a decade, spanning Germany, the UK, Ireland, South Africa, Asia and Latin America.
In this week’s Behind the Idea, we chat to Noel Goddard, founder and managing director of Currency Stream, to learn more about the company and what’s coming next.
Tell us more about your company and its offering
Put simply, Currency Stream allows a consumer to think in their own currency at the moment of purchase when paying for something in a foreign country.
There is no need to work out an exchange rate or try and recall what rate you got yesterday, last week or last month from your pre-paid card provider, bureau de change or bank.
Currency Stream provides the consumer a price in their own currency at the exact moment the buying decision is being made, not before and not after. This means the consumer can just think about the ‘value’ of the purchase with an accurate price in the currency they earn their salary.
This solution is called dynamic currency conversion (DCC) and our unique model ensures certainty and transparency for all parties in the buying process.
What problem was your company set up to solve?
I have worked in FX for 25 years and founded my first FX business, FTT Global, in 2006. The idea for Currency Stream didn’t come about until 2014 however, when I was on holiday and an ATM machine offered me the choice of paying in my own currency. I got curious how this was being done and discovered the answer was ‘badly’. Eighteen months later, I launched Currency Stream.
We believe that no consumer should ever be unsure how much they are paying for something.
Can you imagine getting a bill at the end of a meal and the total is approximately £100 but the waiter can’t provide the exact amount until tomorrow or the next day? Without DCC and Currency Stream, this happens every time a consumer uses their bank debit or credit card overseas.
A previous alternative was to use a pre-paid or currency card, but all this changes now the waiter is telling you: “Here is the bill, you do the maths!” These cards turn you from a holiday-goer into a currency trader, having to remember and calculate the FX rate used to remember when you converted your funds and then cross-checking that with the bill and dividing it by the same rate. Who wants to do that when you are enjoying a well-earned meal out with friends and family on holiday?
Currency Stream DCC locks the price in your own currency, so you know exactly how much you are paying in ‘real money’, so you don’t have to reach for the calculator every time you buy something overseas.
For payment processing customers, we take away the FX risk involved in offering DCC without the need for any changes in the way payments are processed. This means single settlement files from the payment schemes, using the same terminals as always and making consolidated reporting for merchants, with all domestic and foreign card transactions treated the same.
Since launch, how has your company evolved?
Currency Stream has been driven by the rapidly changing payments sector, adapting to new payment models and methods. We are fortunate because we do not impact the normal flow of funds and therefore can be agile in providing new channels and payment methods at the consumer end of the process without having to force changes to our payment processing and acquiring customers.
What has been the biggest challenge or most ‘tricky moment’ to overcome?
Breaking through the scepticism of our target customers, who have had years of poor service and lack of transparency from DCC providers. Our greatest accolade is that our sales pipeline is based on referrals from existing customers who have experienced our passion for transparency, fairness and partnership. To date, we have never lost a customer to a competitor.
What are your biggest achievements or ‘proudest moment’ so far?
My problem is that I don’t really go in for self-congratulation. I still feel the industry has a long way to go in terms of truly removing FX from payments, globally. There is no reason why every consumer should not simply be able to think in their own currency, no matter where they are in the world.
Until we get to that point, I find it hard to dwell on any achievements secured so far. As we all know, pride comes before a fall.
How would you describe the culture of your company?
Transparent to our core and respectful of each other’s talents. We hire people based on their potential and grow them in a supportive and respectful environment.
I also have a mantra that praise flows down through a company and blame flows up. If there is a problem, it is ultimately my failing and not my colleagues, as I didn’t put the structures and guidance in place to enable them to excel.
On the other hand, success is down to them. I can create an environment for them to execute and deliver but the success itself only comes from their passion for delivery to customers.
What’s in store for the future?
Continuous change. I know that sounds flippant, but we don’t have a crystal ball at Currency Stream and the payments industry is going through an incredible transformation at the moment.
Whether it be infrastructure, currency (fiat and digital/crypto), banking, payment methods, reporting requirements, governmental and consumer solutions level, there are so many players in the market claiming a new revolution and better offering.
Time will tell who is right in that. The only certainty is how we pay for things is going to fundamentally
change, but the basic need for converting your earnings into goods and services is not changing.
That is what I keep clear in my mind when heading towards the future. Focus on the customer’s need, not your own solution, and be ready to be agile to the changes in how that gets delivered.
