Sending money overseas just got even more competitive, with TransferWise announcing a series of price cuts this week for Australians transferring money to Asia. TransferWise Australia users can now save up to 23% in fees when moving funds to 10 different Asian countries, including China, India and Thailand.The exact savings will depend on the destination and amount sent. For instance, AUD 1,000 transfers to China cost 13% less than before, which means you would pay $13.11 instead of $14.95. Meanwhile, the cost of sending AUD 1,000 to Sri Lanka has fallen by a much larger 23%, reducing the fee from $9.72 to $7.52.Below is a full breakdown of TransferWise’s fee reductions:
Digital payments platform Azimo has become the latest international money transfer fintech to set up shop in Australia, joining the IMT scene today with a promise to deliver competitive exchange rates and fast speeds to customers. The UK-based service has operated in Europe since 2012, and now eight years on, it's set its sights on Australia as its next large sending market. “We’ve always been more interested in the Asia Pacific than the US,” Azimo’s chief operating officer, Dora Ziambra says. “Australia is also an English speaking country where there’s less localisation needed [than other Asian Pacific countries], and it’s a place where 30% of the population is foreign born and has connections to another country. So it lends itself as a next step of international expansion.”And with AU$28 billion remittances sent abroad from Australia every year, Ziambra says “there’s still room for Azimo to offer a competitive product.”She says Azimo stands out from other digital players in terms of the breadth of its network and its wide range of payout methods. “We cover a lot more countries … and [in addition to bank-to-bank transfers] we offer cash payout, mobile wallet, mobile top-up, sending credit to phone, home delivery in some cases, and bank deposits.” Customers are able to send money to more than 200 countries and territories, including China, Vietnam, the Philippines and Thailand. And while large IMTs with many other providers can take between one to five working days to process, Azimo says most of its transfers arrive in less than 24 hours. Instant transfers are also available for over 50 countries, depending on which payout method you choose. For example, while sending funds to a Thailand bank account would be instant (i.e. complete in a few minutes), for transfers to the Philippines to occur immediately, you may need to opt for a cash pickup instead.Azimo is also expected to appeal to Australia’s Chinese expat community, with instant transfers available thanks to Azimo’s integration with Alipay, a major online payments platform in China. All the customer will need is their recipient’s AliPay ID to send money instantly in yuan. “Delivery speed is something we keep investing in,” Ziambra says. “A lot of our customers - as many as 75% - send money for family support, so getting the money there as quickly as possible at the best price possible is what we aim to offer.”
Need to send money overseas to loved ones? Or needing to set up regular international payments for your small business? You may already know that the big four banks all offer International Money Transfer services, but it’s not always as simple as walking into a branch.
The Australian dollar (AUD) has been anything but stable over the past few weeks, fluctuating constantly between 70.5 and 72 US cents. While this may not seem like much variation, for a larger international money transfer of AU$100,000, it could mean saving or losing as much as US$1,500.And that volatility is only set to intensify throughout October. According to foreign exchange specialist OFX’s head of treasury, Sebastian Schinkel, the Aussie dollar could be knocked out of its current trading range as major global events like the deadline for Brexit and the US election loom on the horizon.“There are a lot of things brewing in the background that may help the Aussie move away from that range. But it’s hard to tell which way we’re going because there are so many factors at play,” he said. “Firstly a lot of attention is being put on the US election, and depending on what happens there, we should definitely see a move in the Aussie. We also have the same thing happening with Brexit in the next couple of weeks or months, and then whatever happens with COVID-19 and US-China trade tensions [will also have an impact on the Aussie].”Plus, uncertainty lingers around Australia’s economic position going forward - the AUD could go up or down in value, depending on whether or not fiscal support announced in the recent Budget will help the economy recover. “I think the Federal Budget will help cover the reduction in JobKeeper and JobSeeker [payments], but at the end of the day, the main challenge for the government and for the country is confidence. There’s a lot of offer for credit but what we are lacking is people actually demanding that credit because they’re afraid of making investments,” Schinkel said. A negative risk sentiment would typically cause investors to flee toward ‘safe haven’ currencies like the US dollar (USD), Japanese Yen (JYP) and Swiss Franc (CHF), which would then weaken the Aussie dollar. That’s precisely why the AUD crashed to 55 US cents back in March after COVID-19 was declared a pandemic. Meanwhile, a positive risk sentiment would likely do the opposite, boosting the value of ‘risky’ currencies like the Aussie dollar and Canadian dollar (CAD).
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.
Despite fears of another Aussie dollar crash, the AUD has continued to hold its ground over the past few weeks and gain strength against the US dollar.
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.
Whether you’re an Aussie sending money overseas or investing in assets abroad, chances are you’ve noticed the Australian dollar (AUD) has fluctuated significantly over the first half of 2020.
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