With faster international money transfers becoming even more of an essential during COVID-19, PayPal and Visa have stepped in with a payments option that could reduce your wait time from days down to minutes.
It’s official. Up has just made history as one of the first neobanks in Australia to join the international money transfers scene, thanks to its latest partnership with IMT provider TransferWise. Launched today, the collaboration will enable Up users to send money in 48 different currencies with TransferWise, all via the Up app.TransferWise Australia’s country manager, Tim Cameron said it’s a next big step to making international money transfers cheaper and faster. “Though an email can travel around the world in a matter of seconds, moving money internationally is still incredibly cumbersome, slow and expensive,” he said. “TransferWise and Up share a common vision to change this status quo and to modernise the international financial system to provide a fair and transparent banking experience for everyone.”In fact, Up customers using the new IMT feature won’t have to worry about any exchange rate markups, plus they’ll know exactly how much they need to pay in transfer fees and how much foreign currency will enter their recipient’s bank account. “Australians staying with traditional providers could end up paying between five and eight times more than Up customers, who will have a seamless, low-cost TransferWise experience without leaving the Up app,” Up’s co-founder, Dom Pym said. Mozo’s number crunch reveals that for an AU$10,000 transfer, Aussies could save US$261 just by opting for TransferWise’s exchange rate today instead of the big four bank average rate.*And according to Transferwise, it doesn’t just deliver bigger savings - but also fast speeds. For instance, Transferwise data shows that in the second quarter of 2020, 28% of money sent overseas with the IMT provider arrived instantly (i.e. took 20 seconds or less).
It’s been a turbulent year for the Aussie dollar. Back in March, the AUD crashed to a 17-year low of 55 US cents before rebounding to 71 US cents last week.And this period of volatility isn’t expected to end any time soon, as headwinds such as escalating US-China tensions and spikes in COVID-19 infection threaten to hamper the AUD’s strong position.So as a business paying overseas suppliers or contractors, you may be wondering: what are my best international money transfer (IMT) moves in these times of volatility? TorFX’s managing director, Nigel Fox says it could partly come down to waiting for opportune moments to make your transfer.“Exchange rates are always moving, with some currency pairs fluctuating by as much as five percent in a matter of weeks,” he says.“Subsequently, timing is everything when it comes to securing the right rate for your international money transfers. Picking the wrong time to move your money could prove costly and eat into potential profit.” To illustrate this, let’s compare AUD/USD exchange rates on two different days.
Using your existing bank for international money transfers might seem like the simplest and most convenient option, but did you know that using a specialist transfer provider can make the process more streamlined and considerably more cost-effective?