Fintech YouTrip vows to end banks gouging $2.6bn in hidden forex fees
Singapore fintech YouTrip has launched in Australia promising zero foreign exchange fees, targeting the $2.6bn Australians lose annually on overseas spending. And for its founder’s mission is personal.
A new fintech company has launched in Australia to take on the big four banks, vowing to use its technology to eliminate foreign exchange fees that cost Australians an estimated $2.6bn last year.
YouTrip, a Singapore-based multi-currency card provider, is positioning itself as a direct disrupter to the market with a promise of “mates rates, no fees, all day” and up to 4 per cent in extra savings on overseas spending.
But for co-founder and chief executive, Caecilia Chu, her aim is more personal, viewing the Australian launch as the latest front in a global battle against systemic financial inequity.
When Ms Chu was 10, her father – a postman in Hong Kong – tried to get a $US12,000 ($18,350) loan to start an accounting business. He went to all 140 banks in Hong Kong and each one refused to lend him the money.
Ms Chu later became a Wall Street banker at Citi, and her experience at the top end of town, combined with her father’s struggle, crystallised a belief that the financial system was built to serve privilege, not perseverance.
“I just really wanted a financial product … that is, no matter who you are, where you’re from, rich or poor. We will always treat you the same, and we’ll always give you our best product, and also always at the best price,” Ms Chu said.
She said YouTrip was targeting the banks in a different way to other fintech challenger, Airwallex, by focusing on consumers rather than business-to-business transactions.
With Australia being one of the world’s most active outbound travel markets — with 12.3 million Australians travelling overseas in the past 12 months — YouTrip is targeting a high-volume consumer pain point. Its core offer is direct access to real-time mid-market exchange rates across 150 currencies, claiming to be the only travel card in Australia that offers 0 per cent foreign exchange fees and $0 annual fees.
Australians paid an estimated $2.6bn in foreign exchange fees last year. But that figure is potentially much higher. In 2023, an Airwallex study found that Australians businesses were paying more than $5.7bn year in excess foreign exchange fees. And in2019 the Australian Competition & Consumer Commission inquiry found consumers were paying too much for foreign currency conversion services due to “confusing pricing and a lack of robust competition”
When pressed on how the company can maintain a ‘no fees’ model against established banks, Ms Chu pointed to proprietary technology and scale, with YouTrip processing about $US15bn ($23bn) a year.
“We owned our proprietary technology and all our licenses end-to-end. Whichever banks we integrate with, we are one of the largest FX trading partners.”
Ms Chu – who founded YouTrip in August 2018, said that profitability is maintained through the standard merchant interchange model when users spend on the card.
She said the banking sector was ripe for disruption, suggesting their diversified nature leaves them vulnerable. “Banks do many, many things. They would typically not be super focused on the use cases that we are,” she said, highlighting YouTrip’s “laser focus” on travel.
Ms Chu said the company is committed to the Australian market for the long term, noting they are building a local team and are prepared to invest.
Regarding future capital, she said YouTrip planned to complete a fundraising next year. It has so far raised $US110m.
“We have been profitable for two years plus. So what it means is a large part of the series B money was there to help us grow into new markets, including Australia. So we are well capitalised. But at the same time, I think we are also interested to perhaps go back into the capital markets next year as well.
“Australia is step one. Is our first market expansion after the pandemic. And We also have more markets coming in 2026. I think we are also in a position to further capitalise ourselves, to make sure you know we are, you know where we are in a good position to properly invest into this new market.”
Originally published as Fintech YouTrip vows to end banks gouging $2.6bn in hidden forex fees
