[Interview] Empowering Global Commerce: How DCC & MCP Are Revolutionizing Payments in MENA

In an increasingly interconnected world, cross-border transactions have become a cornerstone of commerce, especially in the MENA region a hub for international tourism, business, and e-commerce. As global spending rises, merchants and financial institutions must adapt to evolving consumer expectations for seamless, transparent, and flexible payment options.

Dynamic Currency Conversion (DCC) and Multi-Currency Pricing (MCP) are two transformative payment technologies reshaping the region’s financial landscape, allowing international customers to pay in their home currency, these solutions enhance trust, transparency, and convenience, bridging the gap between local businesses and global consumers.

Today, we have the honor of interviewing Georgio Khachan , Vice President Partnerships and Product Delivery (MEA) at PayOrch Technologies to explore the impact of DCC and MCP on MENA’s payment ecosystem, the role of emerging technologies like AI and machine learning in optimizing cross-border transactions, and what the future holds for a more integrated, cashless economy.

How are Dynamic Currency Conversion (DCC) and Multi-Currency Pricing (MCP) technologies transforming the payment landscape in MENA?

DCC and MCP are reshaping the payment landscape in MENA by addressing the region's growing cross-border transaction needs and enhancing customer experiences.

DCC lets international customers pay in their home currency, giving them more confidence when making purchases. This is valuable for tourists and business travelers in MENA, where there’s a high volume of international visitors. For merchants, DCC provides an additional revenue stream since they earn a fee on the currency conversion. This makes DCC appealing in MENA, where cross-border payments are frequent.

?On the other hand, MCP allows merchants to display prices in multiple currencies, so customers can pay in the currency they’re most comfortable with. This is common in card-not-present transactions. It’s also relevant for MENA, which attracts a large number of international tourists. It helps merchants turn international browsers into buyers, improve the shopping experience, and reduce cart abandonment due to currency concerns.

What are the key differences between DCC and MCP, and how do they complement each other in POS and e-commerce environments?

Both DCC and MCP allow the cardholder to pay using their home (billing) currency. The way the foreign cardholder is identified drives which payment method is offered.

?For a transaction to be treated as DCC the card should be used (entered, swiped, tapped etc.) on the point of sale (i.e. POS, ATM, Ecommerce). The card currency is identified from the BIN associated with it and accordingly the offer is displayed. The cardholder is made aware of the exchange rate and any additional fees. The merchant/ acquirer is automatically required to comply with all the DCC rules and guidelines set by the card associations.

?If a card is not used and the cardholder is given a list of currencies or is identified by their GeoIP location (i.e. mapping their geographic area to their IP address and offering the foreign currency) then the merchant and acquirers are offering MCP and bypassing the DCC rules and guidelines. The conversion amounts are displayed and there is typically no need to show the exchange rate or additional fees.

The two technologies complement each other well as they enhance the customer experience and offer a consistent, transparent and customer-friendly payment process across all touchpoints.

Why are these solutions becoming increasingly important for merchants in the region?

There are several reasons for this. First, the growing international customer base in MENA means that merchants are seeing more cross-border transactions. DCC and MCP allow merchants to cater to these customers’ preferences, enabling them to pay in their own currency, which makes the payment experience more seamless and transparent.

?Second, enhancing the customer experience is crucial in today’s competitive market. Offering DCC and MCP helps merchants create a more personalized and convenient payment process, leading to higher customer satisfaction and increased sales. International customers no longer must deal with confusion around exchange rates; they can see exactly how much they’re being charged in their own currency, which boosts their confidence in making a purchase.

Finally, these solutions provide new revenue streams for merchants and help them stay competitive in the market. Merchants earn fees from currency conversion and are better positioned to attract and retain international customers, leading to business growth.

How are DCC and MCP improving the shopping experience for international customers in both physical stores and online platforms?

DCC and MCP provide clarity, convenience, and flexibility to customers and enhance their overall payment experience.

In physical stores, DCC eliminates the uncertainty that often comes with cross-border payments. This reduces any surprise fees or hidden charges, making the purchase feel more straightforward and trustworthy.

For online platforms, MCP allows international customers to browse and shop in the currency they are familiar with. This creates a smoother shopping experience and increase conversion rates. Together, these solutions make the shopping process more seamless and user-friendly, encouraging greater confidence and satisfaction among international customers.

What role do these technologies play in increasing trust and transparency during cross-border transactions?

DCC and MCP eliminate the guesswork and surprises typically associated with cross-border transactions. By removing uncertainty around conversion rates, these solutions allow customers to make informed decisions without worrying about hidden charges or fluctuating exchange rates, which can often be confusing. As a result, this transparency encourages repeat business and strengthens customer loyalty.

How are physical retailers and e-commerce platforms leveraging these solutions to drive customer loyalty and retention?

From a technical standpoint, implementing DCC and MCP require several key developments. For DCC, physical retailers and e-commerce platforms need to implement code changes to: Identify foreign cards for DCC eligibility, initiate dynamic rate lookups and fetch DCC offers, Display DCC offers on screens according to card scheme rules, Build and authorize DCC requests in compliance with standards, Offer DCC for all transaction types, including sales, refunds, etc. and Print compliant DCC receipts for transparency.

Additionally, updates to authorization hosts, clearing platforms, and obtaining certifications from card schemes are required to ensure compliance and smooth processing. For MCP, merchants must update their platforms to display prices in multiple currencies and ensure that the conversion rates are accurately reflected during the checkout process. Merchant also need to authorize the transactions using the correct currencies and minor units.

These technical improvements enhance the overall customer experience, creating trust, and satisfaction.

How can small and medium-sized businesses (SMEs) take advantage of these solutions to attract global customers?

Small and medium-sized businesses should contact their acquirers, processors, and payment providers to check if these solutions are supported and explore enrolment in the appropriate programs.

What are the challenges merchants face when implementing DCC and MCP solutions, and how can they overcome them?

?Merchants can face several challenges when implementing DCC and MCP solutions, but these can be managed with the right approach.

Technical Integration: Adding DCC and MCP to existing payment systems can be complex. Merchants need to update their payment gateways, point-of-sale (POS) systems, and e-commerce platforms to support these solutions. They should work closely with their acquirers, processors, and payment providers to ensure that they have the necessary technical infrastructure and support for smooth implementation.

Compliance and Certification: DCC requires compliance with card scheme rules and certifications, which can be a lengthy and resource-intensive process. Partnering with payment providers who understand the regulatory landscape and can assist with compliance can simplify this process.

User Education and Merchant Training: Customers may not always be familiar with DCC or MCP and could hesitate to use these features. This lack of understanding can lead to confusion and even audit failures for merchants if DCC is not implemented and used properly. To address this, merchants should educate both their staff and customers by providing clear, concise information about how these solutions work, their benefits, and the transparency they offer. Training staff to confidently guide customers through the payment process can build trust, encourage usage, and ensure compliance with audit requirements.

Costs: Implementing DCC and MCP may seem costly due to the required system upgrades and certification processes. The long-term benefits, and the potential for new revenue streams, often outweigh the initial costs. Merchants should see these solutions as an investment in growing their business.

How is AI and machine learning enhancing the efficiency and accuracy of DCC and MCP solutions?

?They are improving the efficiency and accuracy of DCC and MCP in several ways:

?Machine learning models can detect suspicious activities in real-time, flagging potential fraud before it happens, which increases security for both merchants and customers.

AI can analyze transaction data to uncover patterns and trends, helping merchants better understand customer preferences and adjust their strategies accordingly.

AI-driven systems can help ensure DCC and MCP solutions comply with regulatory standards by automatically checking transactions against compliance rules, reducing the risk of errors or fines.

AI and machine learning can automate many aspects of DCC and MCP, like transaction verification, reconciliation etc. This leads to faster processing times, reduces the risk of human error, and lowers operational costs for merchants.

What does the future hold for DCC and MCP in the MENA payment industry?

The future of DCC and MCP in the MENA payment industry is promising. With more players entering the market, like Worldpay, Fiserv, and Adyen, the competitive landscape is expanding, which will drive innovation and offer more options for merchants.

Looking ahead, we can expect the following developments:

• Wider adoption as cross-border transactions rise.
• Increased integration with emerging technologies like AI, blockchain, and real-time payments, improving efficiency and providing more secure cross-border payments.
• Enhanced regulatory frameworks which ensures consistency and security in transactions across the region.
• Greater personalization to further enhance the overall shopping experience.

How can these technologies contribute to the region’s broader goals of achieving a cashless economy?

DCC and MCP make digital payments more accessible, transparent, and convenient for international customers. They encourage more people to use electronic payments and drive their adoption helping the MENA region move toward a cashless future.

What opportunities exist for collaboration between fintech companies and merchants to drive further innovation in this space?

Fintech companies and merchants have great opportunities to collaborate and drive innovation in the DCC and MCP space. Fintechs can help merchants enhance their payment solutions, improving customer experiences and transaction efficiency. Collaboration opportunities include developing customized payment features, leveraging AI for fraud prevention, and expanding cross-border payment capabilities to name a few.

Georgio Khachan , Vice President Partnerships and Product Delivery (MEA) at PayOrch Technologies

Georgio Khachan is a seasoned leader with over 15 years of extensive experience in the payments industry, specializing in managing large-scale global banking systems and delivering innovative payment solutions across the Middle East, Africa, India, and Russia. He has a proven track record of implementing cutting-edge payment products and solutions, driving revenue for businesses and their merchants on a global scale.

Throughout his career, Georgio has successfully led product strategy and roadmap development, impacting some of the largest financial institutions and acquiring banks globally. His expertise spans Dynamic Currency Conversion (DCC), Multi-Currency Pricing (MCP), Payment Card Processing, Standalone POS, Integrated Payments, ATM Networks, and Payment Gateways. Notable institutions he has worked with include Network International , Emirates NBD , Mashreq Bank NeoPay , First Abu Dhabi Bank (FAB) Magnati , Absa Group , HDFC Bank , and ICICI Bank , among others.

Beyond his strategic leadership, Georgio has played a pivotal role in solution architecture, project management, and sales. He has led cross-functional teams across multiple regions to address the complex needs of acquiring banks, payment service providers (PSPs), and card processors. Georgio has been instrumental in shaping the payments landscape in the region, earning recognition as a thought leader in the space.