Opportunity assessment of dynamic currency conversion in Canada

ABSTRACT This analysis assesses the opportunity that Dynamic Currency Conversion (DCC) represents for Hyperwallet, Inc. in Canada. DCC is a legal and established business around the world but its market potential in Canada is almost untouched. Hyperwallet is capable of running a standard DCC system but plans to introduce a patentable new transaction-rerouting technology which would provide a cost advantage in comparison to future competitors. Establishing a cross border presence in line with the rerouting technology involves a large initial investment. Therefore, this project shrinks the scope of business with Americans, who constitute the largest foreign tourist group in Canada. Hyperwallet is provi ded with a pros and cons study of two equally promising locations to introduce the service. In light of the conclusions reached, this project confirms that Hyperwallet should pursue DCC. This project recommends that a feasibility analysis be performed to study the cost structure of the two locations before finalizing an investment decision. Keywords: Dynamic Currency Conversion, Forex, Visa, Opportunity Assessment.