Partnering With FX Payment Solutions for International Sports Transactions
International sports teams have an ongoing need for FX payment solutions, as teams travel for competition, ship equipment, and pay player salaries. Many of those obligations have to be met using foreign currency in multiple countries, which presents a challenge in managing sports transactions. Many teams will turn to a partner with experience in currency exchange and who offers a full complement of FX payment solutions.
What Is an FX Payment?
FX is the abbreviation for Forex, the international spot currency market which actively trades each day in all global currencies. An FX payment is one that is made between two different currencies from one party to another, priced at the daily exchange rate.
FX payments are a necessary part of team travel and participation as many sports leagues host competitions in multiple countries. For example, a sports team from the EU competing in the UK may need to pay a company in British pounds and will need to exchange Euros to complete the transaction. The amount of Euros needed will depend on the EUR/GBP daily cross rate and will determine the cost of the FX payment for the team.
The Challenges of International Sports Transactions
Because currency exchange rates fluctuate, FX payment amounts can be difficult to predict for sports transactions. Payments are typically fixed in the currency of the recipient in a foreign country, so any unanticipated rate changes add to the cost of the transaction for the team. Related challenges include:
Managing payments in multiple currencies for events in different countries
Ensuring on-time payment for event vendors and suppliers
Wide spreads between exchange rates when purchasing currencies
High fees from traditional banks for currency transactions
The lack of currency coverage by a single provider, requiring a team to work with multiple FX exchange services
Addressing these challenges will mean that a sports team will have to engage with a partner that offers complete FX payment solutions, at a reasonable cost and with an integrated payment platform.
Why Teams Use FX Payment Solutions for Sports Transactions
Meeting the challenge of saving on sports FX transactions is possible with the right foreign exchange partner. There are several important areas of managing cost savings, all of which should be offered by the FX provider.
Cost Savings on FX Rates
In order to obtain the most favorable FX rate possible, a partner that specializes in FX payment solutions will need to have two key services. Primarily, offering the best spot exchange rate for a transaction as well as the ability to place a currency market order for optimum entry and maximum savings.
Fee-Free Transfers
Sports transactions in the FX markets can carry significant fees, especially when the traditional banking system is used. Those rates may have a margin cost or are pegged below or above the spot rate. FX payment solutions by an exchange partner should include fee-free transactions at a favorable rate.
Forecast FX Risk
The goal of a sports team is to predict the overall cost of an FX payment ahead of time. Any credible foreign exchange partner has systems to forecast the FX volatility risk in a given currency pair. Some currencies are more susceptible to volatility than others, which if not properly accounted for, can increase the cost of sports transactions.
Simplify Recurring FX Payments
When a sports organization has recurring FX payments to the same businesses, they require a platform to manage those payments efficiently. Sophisticated FX payment solutions for recurring payments should be available to ensure timely payment in the agreed currency. This gives a sports organization confidence that the provider can help steward its valuable business relationships.
Borrow Foreign Currency
Because sports transactions require foreign currency, the partner should offer foreign currency borrowing to eliminate the need to buy currency through the banking system. By using a credit account with the exchange partner, a sports team can borrow the needed currency at a low cost and with immediate availability. This eliminates the need to buy currencies through various providers and allows the use of a single platform to borrow currencies and manage payments.
Use the Leading FX Payment Solution for Sports Transactions
Premier Sports Network partners with a leading provider of FX payment solutions, specifically tailored to sports transactions. Our partner focuses on offering sports teams the breadth of currency exchange and payment services required for consistent and cost-effective transactions. Partner FX services are hosted on a single platform, where teams easily manage all transactions.
Contact us to learn more about how our partner’s FX payment solutions can support your team’s sports transactions in multiple countries.
