Aussie businesses delay international growth due to money transfer complexity, says Wise
Despite the Australian Competition and Consumer Commission’s (ACCC) asking for more transparency and simplicity in international money transfers (IMTs), a new report by foreign exchange specialists Wise (formerly known as Transfer Wise) says international payments are the most significant barrier to Australian small businesses when it comes to expanding internationally.
The research conducted by YouGov on behalf of Wise found that “over half (54%) of Australian businesses [that said] they had been put off by international expansion, were put off by the cost and complexity of international payments. ”
“Forty-one per cent of Australian small businesses that are already operating internationally said that the challenges of managing multiple currencies and bank accounts, as well as the high costs of international banking, had made it more difficult to operate abroad.”
Typically, the exchange rates that banks offer are not the same as those seen on Google or in daily news stories. That’s because banks and some IMT providers add extra fees, making it difficult to sometimes know how much money you’ll receive at the other end.
While there are several bank-beating options for making overseas payments, many Australians still stick to traditional banks - which could lead to more costly money transfers.
“While it is exciting to see many ambitious businesses looking to flourish into other international markets, we can’t help but think of those being held back by an international banking system that works against them,” says Wise Australia’s country manager, Tristan Dakin.
According to the 4,800 businesses surveyed, high costs and a lack of transparency are top of mind. Wise research further showed that 78% of small business owners found “running an international business today is harder compared to five years ago,” due to these hurdles.
IMT tips for your business
International payments don’t have to be confusing, these are just a few things you need to keep in mind when sending money overseas:
- Set up rate alerts for your ideal exchange rate
- If exchange rates are good, consider a forward contract
- If exchange rates are poor, consider a limit order.
- Shop around! Check out our IMT comparison table to compare rates and fees.
If you are one of the many Australian small business owners confused by IMTs and FX, check out Mozo’s money transfer guides to better understand the world of currency exchange.
I want to transfer
Today’s foreign exchange rates
- Excellent exchange rates, no transfer fees
- 24/7 transfers online or over the phone
- Personal account management and expert insights
- Fully regulated, Australian-based team on hand; Secure transfer using proven and reliable banking networks
- Provides dedicated account management support
- Transfer $8,000 or more in March & get a $50 gift voucher! T&Cs apply.
- Fee Free transfers over $250 AUD ongoing
- 24/7 Service (Phone & Online)
- Great Rates with Fast and Secure transfers
$500 monthly minimum for regular transfers
- XE is the world's trusted currency authority used by 280+ million people a year
- XE dealers are licensed and authorised to provide financial advice
- XE money transfer specialise in payments above AUD $20,000
- Always get the real mid-market exchange rate and low transparent fees.
- Join over 12 million customers worldwide
- Over 80% of transfers arrive by the next day.
- Transact online 24/7 with fast settlement & extremely competitive rates.
- Quick and easy account setup, supports multiple payment methods including debit/credit card, bank transfers and wire transfers.
- Transfer over $250 by 30 April 2022 and receive $40 Bonus for the first two transactions. Use code: INSTABONUS. T&Cs apply.
- New customers get 5 free transfers
- Fast, secure transfers, up to 8x cheaper than the banks
- Join over 180,00 customers today
* 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.