Aussies could save millions on international money transfers
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Despite advances in how we send money overseas, there’s still a whopping $200 million in potential savings going untapped, according to the latest report from the Australian Competition and Consumer Commission (ACCC).
The report is titled Transparency and Competition in International Money Transfer Services , and it describes how innovative fintech solutions have disrupted the traditional international money transfer model (IMT), bringing heaps of new services that are cheaper and more convenient.
And while Aussies are increasingly adopting these fintech solutions, and prices are decreasing across the board, there’s still a lot of money left on the table.
As you can see in the following chart, fintech solutions are not only significantly cheaper than the big banks and even traditional IMT providers (eg, Western Union), it also appears they’ve forced their competitors to reduce their rates.
Chair of the ACCC, Gina Cass-Gottlieb says price transparency is a big factor in the success of IMT fintech solutions.
“We are pleased that the industry’s adoption of the ACCC’s Best Practice Guidance has led to improved transparency for consumers, unlocking savings for those choosing competitive offers to send money overseas,” Cass-Gottlieb said.
It appears that being clear about costs and options is helping people make better financial choices.
“Significant savings are available when consumers shop around, use online FX calculators to compare prices, and switch providers accordingly,” she continued.
Potential Savings: What You’re Missing
Here’s what the ACCC found about how much you could save by shopping around next time you send money overseas:
- Big Transactions: If you’re sending $10,000 AUD to the U.S., picking the cheapest provider could keep an extra $400 in your pocket compared to the most costly bank.
- Regular Transfers: For smaller sums like $3,000 AUD, you could save over $100 just by choosing a more affordable service.
Bottom line
While finding cheaper ways to send money internationally might seem daunting, it’s clearer now more than ever that doing a little homework can lead to big savings. The ACCC is on your side, but grabbing those savings is up to you.
One way to do that is by checking out some of the convenient IMT fintech solutions below for your next international money transfer.
Personal international money transfer comparisons on Mozo
I want to transfer
Today’s foreign exchange rates
- Excellent exchange rates, no transfer fees
- 24/7 transfers online, over the phone or through the TorFX app
- Personal account management and expert insights
$6,360 USD
IN PERSONn/a
BY PHONE$0
ONLINE$0$0.6360 USD
1-2 days
$200 minimum
- Send to 200+ countries and 100+ currencies globally, 48,000+ 5-star 'Excellent' ratings on TrustPilot
- Dedicated Australia-based client services team with personal account management for transfers over $20,000
- Send fees are charged on smaller amount transfers, additional fees are charged on debit and credit card payment methods.
$6,344 USD
- IN PERSONn/a
BY PHONEn/aONLINE$5 $0.6347 USD
1-3 days
none
- Fee Free transfers
- Talk to a human, 24/7. Sharp Rates and Fast and Secure transfers.
- Australian owned, ASX listed and Official Foreign Exchange Provider of the NHL
$6,350 USD
- IN PERSONn/aBY PHONE$0ONLINE$0
$0.6350 USD
1-2 days
$250 minimum
$500 monthly minimum for regular transfers
- 48 hour fixed rates, receive 5 fee-free transfers
- Fast, secure transfers, up to 8x cheaper than the banks
- Send and receive money in 20+ currencies
$6,345 USD
- IN PERSONn/aBY PHONE$5ONLINE$5
$0.6348 USD
1-2 days
Minimum transfer amount is $10 AUD
* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.
^See information about the Mozo Experts Choice International Money Transfer Awards
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