Barclays Botswana has partnered with Fexco to launch Dynamic Currency Conversion (DCC), a product upgrading their wiping Point of Sale (PoS) machines to enable foreign travellers to make payments in their currency.
Fexco is an Irish-based financial services company focusing on bureau de change and card payment services. It’ll be responsible for DCC on-time exchange rates, giving tourists the convenience of keeping track of their spending instead of waiting to find out on their return to their home countries.
Whilst making payments using the Barclays Point of Sale machines, the device will be able to detect the currency of the card and give the customer the option of either paying in Botswana Pula or their currency. The advantage here is that the customer will know in real time the amount charged in their currency including the currency conversion charge of 3%.
“There is a lot of tourist volume coming into Botswana faced with the currency conversion dilemma. Our new product enables the client to track their expenditure in their local currency,” said Brighton Banda, Barclays Bank of Botswana Retail Director.
According to Barclays, the product is currently not compulsory for merchants. Banda invited retailers to register for the product, saying only travellers using the Visa and MasterCard debit and credit cards are currently able to enjoy the benefits. Additionally, he said for every transaction converted to DCC, merchants would be incentivised with a rebate at rates pre-agreed with the bank.
“As a financial services provider, we always seek ways through which our payments solutions bring the convenience that customers need and expect. Spending in a currency best understood by a customer is meant to ease transactions for international customers so as to make their shopping experience more convenient,” Banda highlighted.
John Lalit D’Souza, Head of Cards Acquiring and issuing at Barclays Botswana said it took the bank nine months to develop the product, which he said has been in use in other markets, particularly those with high volumes of tourism and commerce such as London and Dubai.
For the bank, DCC helps combat currency fluctuations since payment is made in US$ for all Visa and MasterCard transactions, improves the tourist’s shopping experience and reduces costs by 0.5 %
Reference: Botswana Guardian