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August 31, 2026

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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.

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Abigail Ng

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SINGAPORE: When multi-currency cards first shook up the scene back in 2018, near-zero foreign exchange spreads and fee-free overseas transactions were among their biggest selling points, as well as the ability to avoid the long queues at money exchangers.

Today, these perks are basic expectations for the savvy traveller. With the market saturated and margins razor-thin, banks and fintech players have been upping their game to capture the overseas spending power of Singaporeans.

Over the years, the travel payments space has morphed to cater to an expanded suite of travel needs – bundling mobile eSIMs, complimentary insurance and automated bill-splitting features alongside aggressive merchant partnerships and destination-specific cashback bonuses.

For the financial players, fighting for a slice of this highly lucrative segment is a no-brainer business strategy. Singaporeans love to travel, those who travel frequently tend to be more affluent, and when they do spend abroad, they default to using a few payment modes.

A UOB survey found that Singaporean consumers typically rely on two to three payment methods during overseas trips, with cash and physical credit or debit cards being most popular.

“Competition has always been present, but has continued to intensify,” said Ms Regina Lim, head of OCBC Group card payments and personal loans.

Seamless cross-border payment experiences, competitive rates and flexibility in options are now par for the course.

Mr Raymond Ng, CEO of Revolut Singapore and Southeast Asia, said the opportunity goes beyond offering a good exchange rate.

“Customers are increasingly looking at the overall value and experience – including convenience, flexibility, travel benefits, rewards and how easily they can manage their money across different currencies and markets,” he said.

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Multi-currency platforms and banks said overseas spending is an area of priority because travel is part of their customers’ lifestyles.

“While competition has increased, we see this as a positive development that encourages continued innovation across the industry,” a Trust Bank spokesperson said.

“Ultimately, consumers benefit from better products, greater transparency and more choice.”

DBS head of payments and unsecured lending Chan Sow Han said it may also make sense to travel with more than one payment option.

“There is no single card or wallet that will be optimal for every traveller or every transaction,” she said. “We encourage customers to look at the total value of the payment method, rather than focusing on one headline feature.”

With Singaporean holidaymakers spoilt for choice, here are some factors to consider when choosing what to pay with.

MORE BANG FOR YOUR BUCK

For travellers trying to keep their costs as low as possible, favourable FX rates and foreign transaction fees are one thing to keep an eye out for.

Some cards rely on Mastercard or Visa rates, while others use the mid-market rate – the middle point between the buying and selling prices of two currencies on the global market.

For Singaporeans’ top seven travel destinations, MariBank said it offers special, market-leading exchange rates to beat the competition. Those countries are Malaysia, Indonesia, Thailand, Japan, South Korea, China and Australia.

Travellers may also want to check what kind of cashback is offered, which can vary depending on the destination, the card and whatever ongoing campaigns there may be – keeping in mind that these time-bound promotions are temporary.

The DBS UnionPay Platinum Debit Card offers up to 5 per cent cashback in China, while UOB FX+ Debit cardholders can get 1 per cent cashback on mobile contactless spend in Malaysia, Thailand, Indonesia and Vietnam from Sep 1 to the end of the year.

Trust Bank and MariBank also offer cashback on overseas spend.

Those who want to get rewards in the form of miles would choose cards from the banks, such as the UOB PRVI Miles Card, the DBS Altitude Card or the OCBC 90°N card.

These cards offer accelerated miles for every foreign dollar spent, though cardholders must factor in the banks’ foreign transaction fees, which can eat into the overall value of the rewards.

THE BEST FIT

Depending on the destination, some payment methods might be more suitable than others.

Places like Japan and Taiwan still rely on cash, while QR code payments are used heavily in China and Southeast Asia.

The three local banks offer scan-to-pay features on their apps, while other options may need to be combined with WeChat or Alipay to be used in China.

UOB said the number of scan-to-pay and peer-to-peer payment functions in foreign countries has grown strongly.

“This reflects customers’ preferences for a free, convenient and safer alternative to carrying large sums of cash in a foreign country,” said Ms Jacquelyn Tan, head of group personal financial services at the bank.

The type of transaction also matters, with MariBank’s head of consumer business Huo Haiyan recommending credit cards for retail and hotels.

“Credit cards offer consumers additional protections that they may not get with a payment wallet, such as the ability to raise chargebacks for any potential fraudulent merchant transactions,” she said.

For travellers who need to withdraw money overseas, fees may apply depending on what card or app they use.

Using a credit card would incur cash advance fees, and administrative fees may also be charged for debit cards.

Revolut, Wise and YouTrip offer fee-free ATM withdrawals of between S$100 (US$79) to S$400 per month, though the operator may impose its own fee.

Consumers should also consider their preference when it comes to debit versus credit cards.

For debit cards, their account needs to be topped up, but they are able to lock in exchange rates by purchasing the foreign currency ahead of time.

For credit cards, consumers do not need to transfer money into a multi-currency account, but will be at the mercy of fluctuating exchange rates.

NOVEL OFFERINGS

With so many options on the market, travellers may also think about what features they need when on holiday.

In May, YouTrip launched YouTrip Family, offering linked accounts with built-in spending controls.

“We’ve seen increasing demand for a safer and more convenient way for younger travellers to make payments overseas, while giving parents visibility and control over spending,” said Mr Kelvin Lam, chief operating officer at YouTrip.

Wise has a similar function, along with features that allow users to create a shared balance and pool money for expenses, or split the bill after someone pays.

“This can be particularly useful for international groups, where friends may normally be dealing with different currencies and payment methods,” said Mr Mehul Gopal, product manager for Singapore and Malaysia at Wise.

Increasingly, companies are also moving into the areas in the periphery of travel, offering complimentary insurance, airport lounge access and discounts on eSIMs for mobile data.

For example, Trust has a partnership with Airalo that allows the eSIMs to be purchased within the Trust app.

Ultimately, different payment options can bring value in different situations, and consumers should weigh the suitability and convenience when managing their overseas spending.

Source: CNA/an(nj)

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