Paying overseas suppliers from the UK means trading off two things: the convenience of paying everything from GBP, and the cost of converting every invoice. A multi-currency wallet removes most of that trade-off. With Verto, a UK business holds the currencies its suppliers bill in, pays from the matching balance, and converts only the shortfall. Here is where the cost goes, with a worked example.
Where the cost of paying a foreign supplier comes from
When a UK business pays a supplier in dollars or euros from a UK bank account, the cost usually has four parts. Most finance teams see only one of them on the statement.
The exchange rate. Your provider converts pounds at its own rate. The gap between that rate and the mid-market rate is a cost, even when no fee is listed.
The transfer fee. A flat charge for sending the payment, often higher for international wires.
Intermediary deductions. International wires can pass through correspondent banks, each of which may take a charge before the money arrives.
Repeat conversions. If you also receive the same currency from customers, your bank may convert those receipts into GBP, only for you to convert back again when a supplier invoice arrives.
The last one is the easiest to miss and often the largest. It is also the one a multi-currency wallet fixes.
A worked example: one UK importer, one month
Imagine a UK homeware brand that buys stock from a US manufacturer for $40,000 a month. It also sells to US retailers, which pay it $25,000 a month.
Without holding dollars. The $25,000 from customers is converted into GBP when it lands. Then the full $40,000 supplier invoice is converted from GBP back into USD. The business pays for a conversion on $65,000 of flows, and $25,000 of that crosses the exchange twice.
With a USD wallet. The $25,000 from customers lands in a USD wallet and stays in dollars. When the supplier invoice arrives, the business pays $25,000 from that balance and converts only the $15,000 shortfall from GBP.
On Verto's Free plan, developed-market FX costs 0.6%. Converting $40,000 would cost about $240. Converting only the $15,000 shortfall costs about $90. That is a saving of roughly $150 a month on this one supplier, before any bank charges on the round trip are counted.
How the plan you choose changes the numbers
Verto's UK plans apply to UK-registered companies. Free costs $0 a month, Lite $25 and Emerging $50, with Enterprise priced on request. Higher plans lower the FX rate: 0.6% on Free, 0.5% on Lite and 0.4% on Emerging for developed-market currencies.
Using the same $40,000 of monthly conversions:
Free: 0.6% of $40,000 is $240, plus $0 plan fee, so $240 in total.
Lite: 0.5% is $200, plus $25, so $225.
Emerging: 0.4% is $160, plus $50, so $210.
The more you convert, the more a higher plan pays for itself. Exotic currencies cost up to 2% depending on plan, so the effect is larger if your suppliers bill in emerging-market currencies. See Verto's UK pricing for current figures.
What the payment itself costs
How the money reaches your supplier matters as much as the rate. Local payment fees are free on all Verto plans. An international SWIFT payment from a UK plan costs 20 dollars.
Where your supplier can be paid over local rails in its own country, you avoid both the SWIFT fee and the intermediary deductions that come with international wires. Payments to other businesses on Verto travel through VPay, which is free between Verto businesses.
How receiving like a local cuts costs further
The worked example only works if your customers can pay you in dollars without friction. Verto's Local Accounts give your business US account details, so US customers pay over ACH, the domestic network Nacha governs, rather than by international wire.
The money arrives in full in your USD wallet, ready to pay your supplier. The same works for euros over SEPA and for currencies including NGN and KES, so UK businesses with African suppliers or customers can hold those balances too.
How to keep costs predictable
Holding currencies gives you control over timing as well as volume. Two tools help a UK finance team plan:
Exchange Now converts between wallets at a live rate, 24/7, 365 days a year, so you can top up a currency the moment a shortfall appears.
Exchange Deal locks a rate for 24 hours, which helps when a large supplier payment is due and you want certainty before the funds are in place.
Many businesses also keep separate wallets for each supplier or purpose, such as one USD wallet for stock and another for software. That makes it obvious how much is already committed before anyone converts.
What to ask your current provider
Before you change anything, check what your current set-up really costs. Ask your bank or provider:
What exchange rate did we get last month, and how does it compare with the mid-market rate at the time?
What transfer fee do we pay per international payment?
Were any intermediary charges deducted, by us or by our supplier's bank?
Are incoming foreign payments converted to sterling automatically?
If the answers are hard to get, that is itself useful information. The FCA also sets out what to check when using a payment service provider, which is worth reading before you move any payments. For more on the mechanics, see Verto's guide to international business payments.
Every conversion you don't need is the margin your business keeps. Pay suppliers from the balances you already hold and convert only the shortfall. Get started or speak to Verto sales to see what it would save your business. You can also see how Verto's Multi-currency Wallets work.
Pay overseas suppliers from the currencies you already hold
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