TransferWise launches borderless debit card in Singapore

Global fintech firm TransferWise launched a debit card in Asia that uses real exchange rates, also known as mid-market rates, to help Asian travelers and businesses avoid high foreign exchange fees when spending abroad.

Photo credit: TransferWise

According to the company, there are no sign-up fees, annual fees, and dormancy fees for the new card, which is available for individual and business customers. There will also be no charges for withdrawing up to S$350 (around US$255) every 30 days at any ATM overseas where Mastercard is accepted.

It automatically chooses the currency with the lowest conversion fee and tracks all purchases in real time, including exchange rates and fees as well.

The TransferWise debit card is available starting today for Singapore users after launches in the UK, Europe, US, Australia, and New Zealand. It is also set to be launched in Japan in the following year, according to a statement.

The card comes as a new independent study by research agency Capital Economics, commissioned by TransferWise, revealed that Singaporeans lose roughly US$804 million a year to fees associated with overseas transactions using cards and cash.

According to TransferWise, its users enjoy a lower global average price of 0.67% when making cross-currency expenditures. The company said the average fee per transaction hovers at around 4% after taking into account card ownership fees, transaction fees, exchange rate markups, and miscellaneous fees.

The TransferWise platinum debit Mastercard is accepted by merchants in over 150 countries and comes with a multicurrency account that allows users to hold and convert money in over 40 currencies.

“TransferWise’s mission is money without borders – instant, convenient, transparent, and eventually free. Even though our Singapore card is 6x cheaper than the market average, we will stay focused on further reducing our conversion rates to as close to zero as possible,” said Venkatesh Saha, head of Asia Pacific and Middle East expansion for TransferWise.

The company is currently working on launching the card in more countries in Asia, cooperating with regulators in the region to launch its entire suite of products to more markets, Saha added.

See also: After 3 straight profitable years, TransferWise eyes Asia expansion

The London-headquartered company, launched in 2011, was valued at US$3.5 billion after its last investment round in May. It claims to have been profitable for the last three financial years.

In 2017, it set up its Asia-Pacific hub in Singapore, which now houses 110 employees. In total, the company employs more than 1,700 employees in its 12 global offices.