UK consumers pay over the odds when sending money overseas
Oct 14, 2019
Paysafe research indicates UK consumers pay unnecessary fees for international money transfers
London, UK: People in the UK could be paying over the odds when sending money abroad, according to new research from Paysafe, the company behind Skrill – the digital wallet and money transfer service. The research reveals that 41% of UK-based consumers would still use their bank to transfer or wire money to people overseas, incurring transfer and commission fees in the process. In contrast, just 14% of US consumers would use their bank to send money internationally.
Under a third (29%) of people in the UK currently use an international money transfer service or a person-to-person payments mobile app designed for sending money.
When thinking about the alternatives for sending money, one in five (19%) people in the UK would find a way to send cash cross-border, and 6% would pay by cheque – twice the amount as in the other European countries surveyed. Perhaps surprisingly, 3% said they would send a payment abroad using cryptocurrency.
Skrill Money Transfer is offered at no cost, with no transfer fee and no foreign exchange (FX) mark-up. This means that more money arrives for the receiver as they get the mid-market wholesale exchange rate. Customers can view the exchange rate before sending and receive a rate alert to notify them when the rate has reached a certain level. With more money arriving in the hands of people overseas, more money reaches local economies in line with World Bank Development goals.
Lorenzo Pellegrino, CEO of Skrill, NETELLER and Income Access at Paysafe, commented: “When sending money cross border, doing your homework and comparing costs can really pay off and ensure that funds get into the right hands. Remitting money abroad, especially using more traditional methods, can still be eye-wateringly expensive. Transfer fees also don’t account for exchange rates, which can leave even less money in recipients’ pockets by being unfavourable, or having a commission built in.”
He added: “Not only that, some send money processes can be excruciatingly slow. Compliance with government regulations, clearing procedures, and other factors mean a recipient can expect to wait five working days or even more before the money reaches their bank account.”
About the research
Lost in Transaction is an independent research project commissioned by Paysafe and supported by London-based agency Loudhouse in Q2 2019. The research was completed among 6,197 consumers from the US, UK, Canada, Germany, Austria and Bulgaria, with close to equal weighting for each country. Respondents came from six different age groups and a variety of different professions.
Paysafe Group (Paysafe) is a leading global provider of end-to-end payment solutions. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, card issuing and online cash solutions.
With over 20 years of online payment experience, an annualized transactional volume of over US $85 billion, and approximately 3,000 employees located in 12+ global locations, Paysafe connects businesses and consumers across 200 payment types in over 40 currencies around the world.
Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments. Visit us at www.paysafe.com.
Director of Communications, Europe and Asia, Paysafe Group
M: +44 (0) 7585 967772