TORONTO—European financial technology company TransferWise is planning a Canadian launch next year for its borderless debit MasterCard, which allows users to hold balances in multiple currencies and spend it at home and abroad with lower foreign exchange fees than traditional banks. “When people go out of the country, they are inevitably spending money,” Kaarmann said in an interview. “They’re booking hotels, they’re booking flights, often in other currencies, and that’s where banks scoop the hidden fees.”Kaarmann said there would be no transaction fees for people making purchases on the borderless debit card in the currency a balance is held in. If money held in the borderless account must be converted into another currency before using the card, a conversion fee of between 0.6 per cent and 1 per cent applies, which Kaarmann notes is less than the banks charge. The U.K.-based fintech launched its borderless account in Canada in August last year, and Kaarmann said it is working to offer the accompanying debit MasterCard here in 2019.

Source: thestar May 08, 2018 17:48 UTC