Through this partnership, Lloyds Bank is set to become the first financial institution to widely offer wholesale foreign exchange (FX) rates to UK and European merchants for dynamic currency conversion (DCC) on card transactions.
Dynamic currency conversion (DCC) allows consumers to view the cost of their purchases in their local currency, irrespective of the currency initially used by the merchant to display prices. This initiative aims to enhance transparency and give consumers greater control over their purchase costs.
UK businesses utilising various products from Lloyds Bank Cardnet and European businesses on Fiserv's Carat global commerce platform will gain access to Lloyds Bank's wholesale FX rates for dynamic currency conversion of card transactions. Additionally, they will benefit from market risk management and timely settlement services.
This move is expected to improve operational efficiency and enable merchants to enhance their customer experience by providing clear local currency pricing at the point of purchase. Merchants will also earn fee revenue for each completed DCC transaction. A pilot programme for this system is scheduled to launch with Carat from Fiserv merchants in October, followed by Cardnet in early the following year.
In the company press release, officials from Fiserv highlighted the advantages of their open foreign exchange solution and brought up its capability to allow merchants to provide customers with a simple, transparent, and competitive currency choice at the point of sale and through their ecommerce platform.
Representatives from Lloyds Bank emphasised the significance of this partnership and talked about the roll-out of the wholesale FX rate across Carat and Cardnet. They also revealed their plans to build on the close partnership between Lloyds and Fiserv while exploring new ways to support customers and merchants to make transactions at home and abroad.
Lloyds Bank offers comprehensive financial services to businesses of all sizes, including SMEs, corporations, and multinational entities, with a network of relationship teams across the UK to offer tailored support. Its financial support offerings encompass working capital and cash management services, international treasury and risk management services, trade import and export trade finance, structured and asset finance, and capital market funding.
Fiserv is a Fortune 500 company known for its expertise in payments and financial technology, offering services such as account processing, digital banking solutions, card issuer processing, payments, and ecommerce.
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