Multi-currency wallet, cashback or miles? How to choose the best way to pay overseas
From prepaid cards for children to complimentary travel insurance, banks and fintech firms have moved past offering zero foreign currency fees as the sole selling point for their overseas digital payments services.
Multi-currency cards, cashback, and miles are all options for paying while traveling overseas. These services have become increasingly popular as banks and fintech firms have expanded their offerings beyond low foreign exchange fees. Singaporeans, who typically travel frequently and rely on two to three payment methods during trips, are a key market for these providers.
In addition to competitive exchange rates, consumers now look for overall value and experience when choosing a payment method. This includes convenience, flexibility, travel benefits, rewards, and easy management of money across different currencies and markets. Banks and fintech firms are responding to this demand by bundling additional services such as mobile eSIMs, complimentary insurance, and automated bill-splitting features.
When selecting a payment method, travelers should consider factors such as favorable foreign exchange rates and transaction fees. Some cards use the mid-market rate, while others rely on card networks like Mastercard or Visa. MariBank, for example, offers special exchange rates for popular travel destinations such as Malaysia, Indonesia, Thailand, Japan, South Korea, China, and Australia.
Cashback offers can also factor into the decision-making process, though they are often time-limited promotions. Trust Bank and MariBank provide cashback on overseas spending, while UOB cards offer rewards in the form of miles through partnerships with airlines and travel programs.
Different destinations may require different payment methods. For instance, Japan and Taiwan often rely on cash, while QR code payments are common in China and Southeast Asia. Banks such as UOB have introduced scan-to-pay features to accommodate these preferences. The choice of payment method can also affect the security of transactions, with credit cards typically offering additional protections against fraud.
Lastly, the type of transaction matters. Credit cards are recommended for retail and hotel purchases, as they provide added protections such as chargeback options for fraudulent transactions. However, credit cards may incur cash advance fees, and debit cards may have additional administrative fees. Therefore, travelers should weigh the pros and cons of each payment option when planning their overseas expenses.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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