Multi-currency accounts for UK businesses: how they work

What is a multi-currency account and how does it work?

A multi-currency account is a single account that allows a business to hold balances in more than one currency at the same time. Rather than converting every incoming euro or dollar payment into sterling the moment it arrives, the business keeps that money in its original currency and converts only when it needs to pay a supplier, repatriate profit, or meet a tax liability. The provider maintains a separate sub-ledger for each currency, so the business can see EUR, USD and GBP balances side by side.

Most providers also issue local bank account details for each supported currency. A UK business with a euro IBAN can share that number with customers in France or Germany, who then pay in euros using a domestic transfer rather than an international wire. The money arrives faster, with no correspondent-bank fee deducted in transit, and the business avoids the automatic conversion a traditional sterling account would trigger. Providers such as Nasara Pay extend this model to currencies relevant to African and Middle Eastern corridors.

When the business does want to convert, the platform typically shows a live mid-market or near-mid-market rate and adds a small percentage margin or a flat fee. Some providers also offer forward contracts or rate alerts, allowing businesses to lock in a rate for a payment settling in 30 or 90 days. The account is accessed through a web dashboard or app where finance teams can approve payments, set staff card limits, generate currency statements, and export data into accounting software such as Xero or QuickBooks.

Why UK businesses need multi-currency accounts

HMRC data published in April 2025 shows that 58% of the value of UK goods exported to non-EU countries was invoiced in US dollars, while 39% of UK goods imported from EU countries was invoiced in euros. A large proportion of UK businesses therefore regularly receive and make payments in currencies other than sterling, and every unnecessary conversion eats into margin.

Currency swings carry a real cost. Research by Bibby Financial Services, which surveyed more than 500 UK SMEs that trade overseas, found that 54% had been hit by volatile exchange rates over the previous year, losing an average of more than £53,000 in 2025. Holding revenue in the currency in which it was earned and converting in bulk at a better moment can remove much of that exposure.

Overseas buyers prefer paying in their own currency, and businesses that can offer local payment details are more likely to win and retain international customers. Fintech adoption is accelerating: around 23% of UK SMEs regularly use a fintech or non-bank provider for cross-border payments, compared with only 13% for domestic transactions, according to McKinsey's Global Payments Report 2024.

How FCA regulation protects your business funds

Multi-currency business accounts offered by non-bank providers in the UK are typically delivered by electronic money institutions (EMIs) or payment institutions (PIs) authorised by the Financial Conduct Authority (FCA). These firms are not banks and are not currently covered by the Financial Services Compensation Scheme (FSCS). Understanding how your funds are protected is therefore essential before choosing a provider.

The FCA requires EMIs and PIs to safeguard customer funds in a separate ring-fenced account at a credit institution or in specified low-risk assets. Those funds cannot be used for the provider's own operations. In August 2025 the FCA published policy statement PS25/12, applying from 7 May 2026. Most payment firms must now submit a monthly safeguarding return to the FCA within 15 business days of each month-end, and firms that have been required to safeguard more than £100,000 of relevant funds must appoint a qualified auditor for an annual safeguarding audit.

Revolut received a full UK banking licence from the Prudential Regulation Authority in March 2026, and eligible deposits held with its UK bank entity are FSCS-protected up to £120,000 (the deposit protection limit raised from £85,000 on 1 December 2025). However, the majority of specialist multi-currency providers remain EMIs whose balances are safeguarded rather than FSCS-protected, so businesses should read the safeguarding disclosures of any provider they use. Always verify a firm's authorisation status on the FCA Register before opening an account. Nasara Pay operates under FCA authorisation and maintains full safeguarding of client funds in line with these requirements.

Comparing costs: what to look for in a multi-currency account

The headline cost of a multi-currency account is rarely the whole story. Providers typically charge across several dimensions: a monthly platform fee, a conversion margin added to the exchange rate, a per-transfer fee for outgoing international wires, and sometimes a fee for receiving payments. Understanding each layer is the only way to compare providers accurately.

Wise Business charges no monthly fee on its essential plan and converts currencies from around 0.33% over the mid-market rate for major pairs. Airwallex charges £19 per month, or waives the fee if the business holds or deposits at least £10,000 per month, and adds 0.5% over the interbank rate for major currencies and 1% for others. WorldFirst does not charge monthly fees but applies per-transaction charges. Revolut Business uses monthly subscription tiers with additional fees once plan allowances are exhausted.

Beyond the core fee structure, businesses should check supported currencies, the jurisdictions to which the provider can send payments, and whether local collection accounts are available in the markets that matter most. A business with euro receivables needs a genuine euro IBAN; one with US dollar revenues needs US routing and account numbers. Currency corridors to Africa, the Middle East or South-East Asia require genuine local infrastructure rather than correspondent-bank chains, which is where specialist platforms such as Nasara Pay add meaningful value.

Key currencies for UK businesses and why they matter

The US dollar dominates non-EU export invoicing at 58% of value, driven by commodities, technology and professional services where dollar pricing is the global norm. UK exporters selling to North America, the Middle East or Asia will regularly encounter dollar-denominated contracts.

The euro accounts for around 39% of import value from EU countries, while pound sterling makes up about 27% and the euro about 27% of UK goods exports to EU markets. For businesses with EU supply chains, a euro balance is a basic operational requirement. HMRC data also shows the Canadian dollar accounted for around 2% of the value of UK goods imports from non-EU countries in 2024, with its use rising over recent years.

Beyond those major pairs, UK businesses trading with China deal with CNH (offshore renminbi), those with the UAE use the dirham (AED), and those across Africa encounter currencies including the Nigerian naira (NGN), Kenyan shilling (KES) and Ghanaian cedi (GHS). Holding and moving these currencies without routing every payment through a sterling intermediate step can significantly reduce friction and cost. Platforms such as Nasara Pay are specifically built around emerging-market currency capability.

Setting up and running a multi-currency account

Opening a multi-currency business account typically requires a Companies House registration number, proof of business address, identification documents for directors and ultimate beneficial owners, and a description of expected transaction volumes. FCA-authorised providers must conduct know-your-customer (KYC) and anti-money-laundering (AML) checks before onboarding, so accurate information at the outset speeds up the process.

Once live, add the relevant local account details to invoices sent to overseas customers and redirect supplier payments from a sterling account. Platforms that connect to Xero, QuickBooks or Sage can export multi-currency transaction data with the exchange rate applied at the time of each transaction, making month-end reconciliation and foreign-currency accounting under FRS 102 or IFRS considerably easier.

Common mistakes to avoid with multi-currency accounts

One of the most common errors is assuming that holding funds in a foreign currency is always advantageous. If that currency depreciates against sterling before you convert, the business bears that loss. Multi-currency accounts reduce unnecessary conversion costs but do not eliminate currency risk. Businesses with material exposure to a single foreign currency should consider whether forward contracts or other hedging instruments are appropriate.

A second mistake is treating all providers as equivalent for emerging-market currencies. A platform listing 40 currencies may only offer competitive rates and genuine local payment rails for a handful of major pairs, routing others through intermediate conversions that add cost and delay. Test the actual rate and settlement time for the specific currency pair your business cares about, not just the headline count of supported currencies.

Finally, businesses that grow quickly often underestimate how their payment needs change. A platform excellent for 20 international payments per month may not scale cost-effectively to 200, or may lack the API connectivity that an e-commerce operation needs. Choosing a provider with a pricing model that scales with volume and genuine infrastructure in your key corridors is worth the extra research at the outset.

Conclusion

Multi-currency accounts have become a practical necessity for most UK businesses with any meaningful international activity. HMRC invoice data confirms that dollar and euro payments dominate UK trade, the documented cost of unnecessary conversion is real, and the FCA's tightening of safeguarding standards from May 2026 raises the bar for the providers businesses should trust. Choosing a specialist, regulated platform that allows the business to hold, convert and move money on its own terms is consistently better than relying on a traditional sterling account for international transactions.

The best choice of provider depends on the currencies a business actually uses, the corridors that matter to its suppliers and customers, and the volume of its international transactions. Nasara Pay is built specifically for UK businesses with trade links to Africa, the Middle East and emerging markets, offering competitive rates on currency pairs that major fintech platforms often handle poorly. Reviewing your current international payment costs and comparing providers on your specific pairs is the most effective way to find a genuinely better deal.

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