Australians ignoring lower cost options to send money overseas and save this Christmas, survey reveals

Media release

Monday, 27 November 2017

Australians ignoring lower cost options to send money overseas and save this Christmas, survey reveals

Too few Australians are aware there are lower cost, secure and more convenient options to send money overseas this Christmas, The Australian Overseas Money Transfer Index finds. 

Research commissioned by international payments provider, FlashFX, surveyed 1200 Australians nationally to understand what motivates them to send money overseas and their payment preferences.

Key findings show 1 in 2 Australians prefer to use a bank, 1 in 3 Paypal and only 1 in 20 a non-bank or online money transfer service. 

“The survey tells us that many Australians are unaware there are better options for sending money overseas. Only a small proportion of the nation (4.5%) are reaping the savings, security and convenience benefits,” says FlashFX Chief Enabling Officer, Nicolas Steiger. 

When the nation was asked if they could save $40 to send $1000 this Christmas to family or friends overseas, 43 percent said they’d put the savings straight back into their bank accounts, 16 percent would pay a bill and 15 percent on something for themselves. 

“The statistics show Australians prefer to save yet on the other hand they do the absolute opposite when it comes to transferring money overseas,” Mr Steiger adds.

Approximately 41 percent of Australians don’t even know non-bank online options exist and 38 per cent are simply comfortable and happy to stay with traditional services they do know regardless if there are better options.

Security and convenience are the top two reasons why Australians are happy to stay with their bank.

“Australians shop online because they like the convenience and believe they’re getting a better deal. The same can apply for sending money abroad with non-banking services which are regulated with the same security checks as the banks and subject to the same licensing requirements,” Mr Steiger says.

FinTech Australia CEO Danielle Szetho said the research highlighted that many Australians were unaware of new fintech options to transfer money internationally.

“Fintech firms have really shaken up the international money transfer market by providing faster and more cost-effective services,” she said. “I encourage all consumers to shop around and consider options other than the banks.”

“Importantly, when people choose a fintech payments provider, they are choosing a provider which has to meet all the same regulatory requirements as banks.”

Steiger believes it’s about lack of awareness and a need to empower people to actively change behaviour. 

“It’s the devil you know and trust. Unlike Australian energy prices where consumers see the rising cost directly translated from the hip pocket, bank fees and exchange rate margins are hidden and people don’t know how much it’s costing them. 

“There’s a general perception that you have no control and choice. You take what you are given. Pay the fees and you don’t question it. 

“Only increased competition and broader awareness of non-bank options will enlighten consumers. I am looking to a future where consumers realise they can be in control.”

For the 17 percent of Australians who do send money overseas, 49 percent transfer to support family and friends, while 14 percent use it to purchase a gift for a celebration, including Christmas.

Millennials (18-24) and Gen Ys (25-34) (42%) are the most active in the nation when sending money overseas and the Millennials (54%) are the largest group across all age segments to choose a bank first and the least likely to use a non-bank internet operated service (43%). 

Almost 43 percent of the nation who do send money overseas, do it a few times a year and 29 percent at least once a month. 

“It’s surprising the high frequency of international payments Australians send. If people acted on their apparent sensitivity to price and were less trusting of the banks, they could save over $150 on three transactions a year choosing a non-bank service.

“People who use comparison sites or try a few providers will usually save a substantial amount of money,” Mr Steiger adds.

FlashFX’s vision is to aid an international frictionless payments environment where customers are empowered and always treated fairly.

END.

For media enquiries/information:  Nicole O’Sullivan, FlashFX, on 0410 517 884  

For media interviews: CEO, Nicolas Steiger, FlashFX, on 0424 934 400 or 

Mark Skelsey, FinTech Australia, 0403 197 523

About FlashFX

Co-founders Nicolas Steiger and Michael O’Sullivan having worked extensively in the banking industry, were frustrated by the limited choices available to Australians transferring money overseas. Together they created international transfer service, FlashFX, using blockchain and integrating it into the Ripple distributed ledger technology to allow for real time currency settlement and payments. The platform was purpose build to move money overseas securely, quickly, cheaply and with more control for consumers. FlashFX is the first Australian company to receive an Australian Financial Services License (AFSL) from ASIC. flash-fx.com

Editor’s note

You send $1000.00 AUD, with FlashFX you save up to $38.79 AUD