Being able to pay in your home currency is something that we take for granted, but 40 years ago this service did not exist.
In the third episode of the Time Well Spent podcast, AIB Merchant Services explores how three Irish businesses collaborated to create a unique and innovative currency conversion product that has revolutionised FX payments.
Dynamic Currency Conversion was the brainchild of Brian McCarthy, the owner of the first independent Currency FX in Ireland and founder of Fexco. From humble beginnings in Killorglin Co. Kerry, Brian revolutionised foreign currency payments by developing what we know today as DCC.
DCC gives international customers the choice to pay in their home currency with full visibility of exchange rate and margin, and provides instant conversion to their home currency.
Innovation is the common thread that runs through three of Ireland’s largest multinationals — AIB Merchant Services, Fexco and Aer Lingus. As partners for over 30 years they have led the way in their respective industries, pushing boundaries to deliver an exceptional customer experience.
In the Time Well Spent podcast we talk to Blánaid Zanini, General Manager of Fexco Europe about their international expansion to 48 countries, with over 2,700 staff to now processing €34 billion in annual transactions.
She said: “The company was founded on an entrepreneurial spirit, ever evolving, ever innovative.”
And that shows today. Moving on from retail FX in the late eighties, the company expanded into the managed services area with the digitisation of 11 million documents, and later in the 2000s developing an online currency conversion tool that customers could conveniently use from the comfort of their own homes.
Always keeping the customer-centric approach to business, Fexco partnered with AIB Merchant Services in 1996 to bring DCC to the Irish market. Initially catering to the hospitality industry, they soon broadened their horizons by collaborating with Aer Lingus to develop the first eCommerce DCC solution.
On the Time Well Spent podcast, Payments Product Manager with Aer Lingus, Fabien Mollinari, shared his thoughts on the success of this relationship.
“When it comes to the relationship with AIB Merchant Services and Fexco, it has been extremely successful they were able to understand the unique nature of the airline industry and work with us to find bespoke solutions,” he said.
Today Aer Lingus offers their 11 million customers a digital-first experience via their innovative app and website aerlingus.com. Payments have played a huge role in their evolution, providing customers with a smooth and frictionless experience through their multiple payment solutions including DCC.
“DCC is a vital mechanism for an international airline to process payment in the currency that our customer wishes to pay in,” said Fabien Mollinari.
The relationship with AIB Merchant services and Fexco allows the airline to settle payments in 11 currencies depending on the departing airport, giving their customers reassurance of no unexpected charges or FX rates.
DCC makes travelling easier but the benefits do not end there. We spoke with Robbie Doherty, Director of Product and Scheme Compliance at AIB Merchant Services.
“DCC also provides businesses with an additional revenue stream where they will receive a credit in the form of a quarterly rebate on their AIB Merchant Services statement,” he said.
According to Doherty, DCC foreign exchange has come a long way since its early inception over 30 years ago.
“In the past, international tourists were offered DCC depending on whether they were wearing a Stetson and a check shirt! Today it’s based on the first six digits of the card which identifies the currency of the country.”
To hear more about the DCC story and forthcoming interviews with some of the biggest players in Irish retail, listen to Time Well Spent, available now on all major podcast platforms.
Photo: Blánaid Zanini, general manager of Fexco.
