When dealing with global markets, foreign currency exchange becomes a key issue. Buyers at various locations prefer to make payments in their local currencies. So, for example, if you are an American merchant selling online in China, your customers will want to pay in Yuans. Due to fluctuations in currency exchange rates, if you wait to convert the Yuans to dollars, you may lose money on a large number of transactions.
Payment providers and advanced payment platforms manage price risks through foreign derivative markets.
