Aussies could save millions on international money transfers

By Brad Buzzard · · 2 min read
Fact Checked
A pile of Australian currency notes in different denominations.

Despite advances in how we send money overseas, there’s still a whopping $200 million in potential savings going untapped, according to the latest report from the Australian Competition and Consumer Commission (ACCC).

The report is titled Transparency and Competition in International Money Transfer Services , and it describes how innovative fintech solutions have disrupted the traditional international money transfer model (IMT), bringing heaps of new services that are cheaper and more convenient.

And while Aussies are increasingly adopting these fintech solutions, and prices are decreasing across the board, there’s still a lot of money left on the table.

As you can see in the following chart, fintech solutions are not only significantly cheaper than the big banks and even traditional IMT providers (eg, Western Union), it also appears they’ve forced their competitors to reduce their rates.

Bar chart showing the cost of international money transfers at fintechs, traditional suppliers and big banks between 2019 and 2024.
Source: Transparency and Competition in International Money Transfer Services, ACCC, July 2024

Chair of the ACCC, Gina Cass-Gottlieb says price transparency is a big factor in the success of IMT fintech solutions.

“We are pleased that the industry’s adoption of the ACCC’s Best Practice Guidance has led to improved transparency for consumers, unlocking savings for those choosing competitive offers to send money overseas,” Cass-Gottlieb said.

It appears that being clear about costs and options is helping people make better financial choices.

“Significant savings are available when consumers shop around, use online FX calculators to compare prices, and switch providers accordingly,” she continued.

Potential Savings: What You’re Missing

Here’s what the ACCC found about how much you could save by shopping around next time you send money overseas :

  • Big Transactions: If you’re sending $10,000 AUD to the U.S., picking the cheapest provider could keep an extra $400 in your pocket compared to the most costly bank.
  • Regular Transfers: For smaller sums like $3,000 AUD, you could save over $100 just by choosing a more affordable service.

Bottom line

While finding cheaper ways to send money internationally might seem daunting, it’s clearer now more than ever that doing a little homework can lead to big savings. The ACCC is on your side, but grabbing those savings is up to you.

One way to do that is by checking out some of the convenient IMT fintech solutions below for your next international money transfer.