Foreign exchange platform YouTrip now available in Australia
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- YouTrip's fee-free travel card is now available to Australians.
- There are no fees for overseas transactions or ATM withdrawals up to $1,500 per month.
- It joins the likes of Revolut and Wise, not to mention banks like ING, in the increasingly competitive travel card space.
YouTrip say its strong exchange rates and lack of fees mean customers can get up to 4% more from their cash compared to bank travel cards or competitors like Wise and Revolut.
It offers free overseas ATM withdrawals up to AUD$1,500 each month (a 2% fee applies after and the ATM itself may still charge fees).
For the first five months after sign up, customers can earn up to 2% cashback on international purchases, capped at $40 per month.
There are no ongoing or transaction fees, just a $5 charge to replace a card.
YouTrip CEO and co-founder Caecilia Chu says YouTrip aims to offer a more affordable, accessible, and convenient way for travellers to pay for things overseas.
"Australia's strong travel culture and demand for better foreign exchange value makes it the perfect next step for us," she said.
This comes as ING Australia research released last week reveals Aussies are spending 20% more on travel than a year ago.
How does the YouTrip card work?
The YouTrip card can be used anywhere Mastercard is accepted - you can withdraw from any ATM showing the Mastercard, Maestro, or Cirrus logo.
Customers can load the card with AUD, then there are 10 currencies available for in-app exchange including USD, Euros, Pounds and Yen.
Other currencies (YouTrip supports more than 150) are converted in real time at a 'wholesale exchange rate' which YouTrip says are very close to mid-market rates.
The YouTrip card can't be used for transactions deemed to be for gambling, money transfers or securities trading, among other things.
How does YouTrip compare to Wise and Revolut?
| YouTrip | Wise | Revolut | |
| Cost | Free to sign up | Free to open a personal account, fees may apply for business accounts | There's a free version, but then tiered monthly plans above that from $5.99-$28.99 a month, with various benefits (the top plan for example offers complimentary travel insurance) |
| Transaction fees | No transaction fees | A fee (from 0.63%) applies any time you transfer money, but once you've loaded your card with local currency you can transact for free | Revolut customers can spend, withdraw, and exchange foreign currency during the week for free, up to a certain amount depending on the plan |
| Sending money overseas | YouTrip doesn't support sending money overseas | Wise allows you to send and receive money in foreign currency using PayID, bank transfer or a Wise account, for a fee (less than 1%, gets smaller the more you send) | Revolut also lets you send money abroad for a transfer and exchange fee. A 1% fee also applies on what you send above your plan allowance |
| Overseas ATM withdrawals | Free overseas ATM withdrawals up to AUD$1,500 each month with a 2% fee applies after, not including ATM fees | Free up to $350 per month (with 2 or fewer withdrawals), then 1.75% on any amount over and $1.50 per withdrawal | No fees up to the plan limit (the limit on the top plan is AUD$1,400 per month) |
Which banks offer no-fee international transactions?
Several banks including Macquarie and ING, Up, and others also waive foreign transaction and overseas ATM fees on their debit cards.
These products however generally don't allow customers to pre-load foreign currency - fees are converted at the point of sale.
The amount is usually converted into Australian dollars using the Mastercard or Visa rate.
Read more: ING scraps international fees
Is YouTrip a good deal?
YouTrip appears to compare favourably to similar companies in the market such as Revolut and Wise.
However they are a little different from debit cards with fee-free international transactions and ATM withdrawals in that you can pre-load currencies.
This can be advantageous if you expect the Australian Dollar to get weaker against your destination's currency.
With this said, you can't exactly control currency markets, but you can control your fees and how you use the card.
Care should be taken to compare the fee structures of the products you're thinking of using, and how they measure the exchange rate and whether that's a Mastercard or Visa mid-market rate or if they add a margin as well.