Encourage FX Conversion

Last updated: April 7, 2026

Smart USD Conversion

The end user knowledge base article can be found at Smart USD Conversions - this is presented to the user when they click "Learn More" in the app

Overview

Encourage FX Conversion is a system feature that monitors USD cross-border payments via the SWIFT GPI network. When a payment is delivered to the final beneficiary in a non-USD currency (indicating intermediary or beneficiary bank conversion), the system automatically updates the recipient record to reflect the actual delivered currency. On the next payment to that recipient, the end user sees the updated currency and a notification explaining the change.

The end-user-facing name for this feature is "Smart USD Conversion."

How It Works

  1. An end user sends a USD payment to an international recipient.

  2. GPI tracking data reveals the payment was delivered in a local currency (e.g., AUD, EUR) after conversion by an intermediary or the beneficiary bank.

  3. The system updates the recipient's currency on the end user's record. The user is notified by email

    image.png

  4. No user confirmation is required.

  5. On the next payment attempt, the end user sees the new currency pre-selected and an in-app notification explaining the update.

    d3756dd2-a7f5-4959-b217-f1958bfd20fc.png

Benefits

  • Revenue: When payments are sent in USD and converted by an intermediary or beneficiary bank, no FX revenue is generated for your institution. Converting at origination captures that FX spread.

  • Delivery speed: Payments sent in the beneficiary's local currency avoid intermediary processing steps, reducing delivery time.

  • End user experience: Users get more predictable pricing, fewer deductions in transit, and faster receipt confirmation from their recipients.

Managing Exceptions

If an end user requests their recipient be reverted to USD, this is handled through support. The system will stop auto-converting that recipient, though the intermediary/beneficiary bank will still convert the payment on their end. This should be positioned as a rare exception, not standard practice.

Specific currencies can also be excluded from Encourage FX Conversion at the bank level. Contact your PayRecs representative to configure currency restrictions.