Is OFX good for business money transfers?

In this review, we look at if OFX is a good currency broker for businesses to manage their foreign exchange risk and international payments.

OFX Becomes an Amazon-Approved Payment Services Provider

Currency broker OFX has become a member of Amazon’s new approved payment services provider program. The move will make it easier for Amazon sellers using the platform to get proceeds from their international sales.

Read our full review of OFX here.

Amazon’s approved payment services program is a new initiative to drive up security on the platform and protect its users from fraud and abuse.

• Further reading: see our guide on how to buy Amazon shares from the UK.

Sellers can now choose between having their proceeds delivered directly to them by a deposit taking bank or to a bank account issued by a payment service provider which participates in the scheme.

For those sellers who choose to go with PSP, Amazon will only accept payments from bank accounts which are members of this program.

The new rules have had a significant impact on FX providers such as OFX. Previously sellers could have worked through Amazon. However, with these new provisions in place, they would have to either be a PSP provider or a bank. Only a select few FX providers have so far been signed up to the scheme, which places those which are in an advantageous position.

Amazon’s online marketplace has grown dramatically over the past few years with sellers of all sizes using the company’s vast distribution network to sell all over the world. The platform means that even individuals can suddenly operate with internationally based customers.

However, alongside the ecommerce boom has come a surge in online risk. Like all ecommerce platforms Amazon has had to up its game to limit the activity and fraudsters and malicious actors. Their PSP provider program is their attempt to create a safer online environment for sellers and buyers. However, it can create disruption to sales, with disbursements being interrupted to sellers not using approved payment avenues.

OFX’s inclusion in this program will enable sellers to continue using OFX as they were before.

OFX & TreasurUp (For Businesses)

Back in 2021, OFX invested $6.1 million in the cloud software company TreasurUp to improve its international payments and foreign exchange services for businesses, including primarily small and medium-sized enterprises (SMEs). The investment in TreasureUp makes it quicker and easier and improves the security of currency transactions for OFX’s corporate clients. TreasurUp’s software can be integrated into automated currency hedging policies, improve currency risk management products, and also provide an FX pricing platform into the existing OFX platform.

OFX business users can use TreasurUp’s technology through OFX to simplify complex FX transactions, helping businesses manage currency risk more effectively. The key benefit to e-commerce, online sellers and businesses making international payments is that the software automates tasks that were previously manual and error-prone, such as hedging for FX forwards, spots, and limit orders.

Richard Berry

Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.

Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.

Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.

Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.

You can contact Richard at richard@goodmoneyguide.com

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