The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The currency exchange software market is expected to register a CAGR of 12.50% during the forecast period of (2020 - 2025). The software has highly-customizable features and compliance functionality that helps simplify transactions, reduce user errors and minimize risks associated with foreign exchange. The software is implemented by banks and other financial institutions, money-service businesses, hotels, resorts, tourist attractions, and travel agencies.
- The foreign exchange volatility has fallen over the past few years since the record levels of liquidity provided by the central banks have calmed the markets and left investors with scattered ways to wring a profit from the trading currencies.
- Foreign exchange trading volumes have accelerated very sharply from the start of 2018, as investors are betting on a weaker dollar and uncertainty about the end of the era of low-priced money, which stoked volatility. Internation trade volume and the number of nations trading has been increasing and pushes the demand.
- End-users prefer integrated and centralized solutions, due to the implementation of different software, that may lead to integration issues. Integrated products and software solutions from the same vendor attract more end users due to their better integration ability and support other functions.
Scope of the Report
The software market is driven by the growing demand of multi-currency accounting software which is specially designed to facilitate Foreign Currency Exchange Bureaus that mainly helps in the exchange of currencies and cash/sell travelers’ cheques. It facilitates the currency exchange cashier to buy or sell foreign currency. The cashier can choose between currency notes, currency coins, and traveler’s cheques to transact with.
Key Market Trends
Cloud Segment is Expected to Hold the Major Market Share
- Cloud-based systems are cost-effective as they are able to use the software on a pay-per-use basis. Enterprises avail various benefits as the cloud-based software offers advantages including low maintenance costs, along with the limited requirement for hardware infrastructure, easier and faster implementation of IT solutions, less dependency on in-house IT personnel, with no licensing costs.
- Moreover, enterprises can also access the data and services through the web-based platform such as through a web-browser. The short implementation time also reduces the cost of implementation thereby improving the return on investment (ROI).
North America is Expected to Hold Significant Market Share
- With the presence of a huge number of enterprises among the small money transfer firms, travel agencies, and forex fixing companies across the region, it has been a necessity for the adoption of the foreign currency trading software influenced by the adequate IT infrastructure, across wide geographic dispersion of foreign exchange organizations and money transfer firms, with the increasing globalization.
- Moreover, vendors across the North America region are upgrading and offering innovative solutions to the vendors to achieve competitive advantage.
The currency exchange software market is moderately competitive and consists of several players. In terms of market share, some of the players are currently dominating the market. With the innovation across the software advancement, most of the companies are expanding their market presence thereby securing new contracts via tapping into the new markets of the emerging economies.
- April 2019 - Broadway Technology announced that it has acquired 100% of Barracuda FX, a global provider of FX order management technology. With this acquisition, Broadway will continue to expand its product suite and deliver its multi-asset solutions across more parts of the investment lifecycle while allowing clients to automate additional workflows.
- May 2018 - 4xLabs announced the launch of the world’s first online platform for wholesale banknotes trading today. Developed in consultation with the financial services industry, Biz4x Marketplace replaces the traditional telephone system with an electronic multi-party request-for-quote (RFQ) trading platform, that streamlines the current process by eliminating market inefficiencies and providing greater transparency.
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