TRANSFER006 — Benefits of Local Currency Transfers

Modified on Fri, 21 Aug at 8:57 AM

Overview

Why paying recipients in their own local currency is faster, cheaper, and more predictable than a traditional cross-border SWIFT wire — and how to execute it in Xtrm.

Quick Answer, when sending international payments, sending funds in your recipient’s local currency unlocks local clearing networks (such as SEPA, ACH, EFT, or Real-Time Payments) instead of routing through expensive international wire networks (SWIFT).

Key Benefits:

Lower Costs: Eliminates hidden intermediary bank fees (which can exceed $100 per transaction).
Faster Delivery: Payments usually settle in 1–2 business days, same-day, or near-instantaneously depending on local network availability.
Automated Exchange: Xtrm converts the currency automatically as part of the transaction process.

What Is a Local Currency Transfer?

When you send an international payment, you can either wire your own currency directly to the recipient's bank (a traditional foreign-currency wire), or have Xtrm convert it and deliver it in the currency the recipient's bank account is actually held in — a local currency transfer. Xtrm handles the cross-border conversion automatically, so the recipient receives funds in their own local currency without you having to arrange the conversion yourself.

Sending in local currency also opens up more delivery options within the destination country. Depending on where you're sending, Xtrm can deliver the payment through Domestic Clearing Networks (SEPA, ACH, EFT), Local Wire, or Real-Time Payments (RTP) — giving you a choice of speed and cost rather than being limited to a single international rail.

Local Currency Transfer vs. Traditional Wire

Key Benefits

	Traditional Foreign-Currency Wire	Local Currency Transfer
Cost	Often routes through multiple intermediary banks, which can add unexpected wire fees along the way. (Over $100 in some scenarios.)	Can use local clearing networks (SEPA in Europe, ACH in the U.S., EFT in Canada), local Wire, or Real-Time Payments (RTP) depending on destination and speed needs — domestic clearing options significantly reduce or eliminate third-party banking charges.
Speed	Routed through the international wire network (SWIFT), which typically takes longer.	Uses regional domestic banking rails, so funds typically arrive within 1–2 business days — sometimes same-day, or near-instant where Real-Time Payments (RTP) is available.
Currency conversion	You typically have to arrange the currency conversion yourself, often through your bank.	Xtrm handles the currency exchange for you automatically, as part of the transfer.

Best Practices for Companies

Match the country and currency: make sure the bank account currency you select in Xtrm matches both the country and the domestic currency of the recipient's bank account.
Exchange Currency First: Use the Exchange feature to convert the USD to Local Currency before initiating the transfer.

If you would like more information on exchange rates and transfer fees, please email [email protected]