More than 40% Singaporeans paid unnecessary transaction fees while travelling overseas

SINGAPORE: A study by global fintech company Revolut said that over 40 per cent of Singaporeans who travelled abroad last year paid unnecessary foreign transaction fees.

The study, carried out by YouGov, included a representative sample of more than 1,000 Singaporeans aged 18 to 65.

“One of the biggest pitfalls when travelling abroad is being charged unnecessary FX fees. Most banks in Singapore charge up to 3.25 per cent per transaction,” said Raymond Ng, Chief Executive Officer at Revolut Singapore.

“Being charged FX fees can be completely avoided by using a multi-currency card,” he added.

As for modes of payment during their overseas travels, most Singaporeans surveyed, or 70 per cent, use cash.

Slightly less than half, or 48 per cent, use their credit cards. Among them, 44 per cent depend on dynamic currency conversion, which means they spend an extra fee.

Over half of the credit card users (53 per cent) are from Gen X, while 34 per cent are from Gen Z. Also, 38 per cent of Singaporeans use debit cards for their travels, most of whom are from Gen Z.

For this year, Singaporeans intend to travel more, stay away longer, and spend more on their trips.

Last year, there was an increase of more than 80 per cent in the number of passengers who departed from Changi Airport as part of the post-pandemic travel boom.

The study shows that one in five Singaporeans who participated in the survey will spend more on travel this year than in 2023.

However, this does not mean that Singaporean travellers will throw caution to the wind, as many still prepare a budget and use tools to ensure they stick to it.

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When it comes to budgeting, 54 per cent consider costs for transportation, accommodation and activities, while 47 per cent factor in the length of the trip and their daily spending allowance.

Meanwhile, 35 per cent said they base their budget on available savings or disposable income, and 25 per cent said they base it on their previous travels.

As for the types of travellers, only 3 per cent considered themselves luxury travellers, while nearly 30 per cent said they are budget or value travellers. Meanwhile, one in five said they consider themselves experiential travellers.  /TISG

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