A Step by Step Guide on How to Change Currency in Magento 2

As an eCommerce store owner, it is imperative to localise the experience for your users. If you are offering products in Pakistan but the store shows the prices in USD, it will lead to a negative user experience. Your audience expects that everything in the store, ranging from the language to the currency, is as per their needs.

If you are a Magento user, you are in luck. It offers a wide range of features and functionality to create, customise, and manage an e-commerce website. One of the most powerful features of Magento 2 is multi-store and multilingual support. It allows you to localise your store by offering multiple languages and currencies.

The Importance of Multiple Currencies in an Online Store

Here’s why you need to have multiple currencies in your online store:

• Global Reach: By offering multiple currencies, your store can target a much wider audience. By browsing the store in their local currency, the shoppers can make informed decisions. Otherwise, they would have to spend time on converting the amount to their local currency and consider the tax on a foreign currency transaction. Given the choice available to customers nowadays, no one will spend so much time or effort on it. Instead, they will just close the tab and move to a website that is localised as per their requirements. If you wish to avoid losing business this way, offering multicurrency support is the only option.
• Customer Experience: Displaying prices in the customer's preferred currency enhances their shopping experience. It eliminates the need for manual currency conversion, providing convenience and reducing friction during the buying process. A positive customer experience can lead to higher customer satisfaction, repeat purchases, and customer loyalty. This is not based on anecdotal evidence but backed by research. Studies by Ahmad et al. (2022), Singh et al. (2023), and countless others conclude that positive customer enhance is positively correlated with customer loyalty. Therefore, it is imperative to set up multicurrency support in your online store.
• Localization and Trust: When customers see prices in their local currency, it creates a sense of familiarity and trust. It shows that the online store understands their needs and has taken steps to cater to their specific region. This localization effort can build credibility and increase the likelihood of customers making a purchase.
• Transparent Pricing: Currency conversion rates fluctuate regularly. By offering prices in different currencies, you provide transparency and clarity to customers, as they can see the exact amount they will be charged in their local currency. This transparency can prevent any confusion or surprises during the checkout process and help customers make informed decisions.
• Improved Conversions: Supporting multiple currencies can have a positive impact on conversion rates. When customers can view prices and complete transactions in their local currency, it eliminates the potential barrier of unfamiliar or confusing prices. This can lead to increased conversion rates and a higher likelihood of customers completing their purchases.

How to Change Currency in Magento 2?

To change the currency in Magento 2, you can follow these steps:

1. Log in to your Magento 2 admin panel.
2. Navigate to Stores > Configuration.
3. In the left sidebar, under General, click on Currency Setup.
4. Expand the Currency Options section.
5. In the "Base Currency" field, select the currency you want to set as the default base currency for your store.
6. In the "Default Display Currency" field, choose the currency you want to display to your customers by default.
7. If you want to allow customers to switch currencies, set "Allowed Currencies" to the currencies you want to enable. Hold the Ctrl (Windows) or Command (Mac) key to select multiple currencies.
8. Save the configuration.

After saving the changes, your Magento 2 store will use the new base currency and display the default currency you selected. Customers will also have the option to switch between the allowed currencies if you enabled that feature.

How to Change Currency in Magento 2 Based on Customer's Geo Location?

It can be a hassle for some to keep changing the currency manually. What if there was a way that the currency changes based on the user’s location? For example, an individual viewing the store from the US will see prices in USD, while one from UK will see in GBP. Currently, Magento 2 does not support automatic currency switching based on Geo IP.

However, there’s no need to worry as store owners can get this functionality through custom development. This is where FME Extensions comes into play. As a leading Magento development company, we offer a wide range of extensions catering to different and unique requirements.

FME already has an auto currency switcher. It allows you to implement Geo-IP auto currency switching functionality in your Magento 2 store. What does it mean? It means that there is no for the customers to manually switch the prices every time they visit your online store. The store will do it automatically based on their IP location.

Here's a general overview of how to use the FME Geo IP Auto Currency Switcher extension:

• • Configure the extension: After installing the extension, navigate to Stores > Configuration > FME Extensions > GeoIP Currency Switcher. In the configuration settings, you can enable the extension, select the Geo IP database file, set the default currency, and customize other options according to your requirements. Save the configuration.
  
  • Import and update Geo IP data: Obtain the Geo IP database file from a reliable source or choose the FME provided database. Follow the instructions provided by FME Extensions to import and update the Geo IP data within the extension.
  • Test and refine: Perform thorough testing to ensure that the currency switcher works as expected. Test with different IP addresses from various countries and verify that the currency is switched correctly based on the visitor's location.
  • Customize and extend (if necessary): FME Extensions provides options to customize the extension further, such as customizing the currency switcher display or implementing additional features. If you want to customize the extension, open a ticket with your requirements and our support team with get back to you.

This extension simplifies the process and provides a seamless experience for your customers. Having skilled Magento 2 developers can further enhance and customize this feature to align with your specific business requirements. That's all regarding changing currency in Magento 2, manually or automatically. We hope it was helpful.