Travelex launches Dynamic Currency Conversion in the US
02 October 2007 | 1729 views | 0
Travelex, the world's foreign exchange and business payments company, today announced the launch of Dynamic Currency Conversion (DCC) services for US banks, particularly those offering services through ATM machines.
US banks can now offer inbound visitors exchange rate certainty when they withdraw local currency with a non-domestic card. Travelex's DCC solution provides foreign cardholders with the option to have the transaction converted into their domestic currency when they make an ATM, POS or E-commerce withdrawal abroad.
Travelex is launching DCC at Sibos, as it believes that the US could become the largest market for DCC, based upon an inbound travel spend worth US$85.7bn. Inbound travel is predicted to reach 54.1m trips into the US with the majority of travellers coming from Mexico, Canada, the UK and Japan.
Based on this high inbound travel spend in the US, as well as market data which indicates that ATM withdrawals account for 20 per cent of total spend, Travelex believe that US banks and ATM networks are missing out on a possible $171.4m revenue opportunity from inbound travellers making currency withdrawals.
David Sear from Travelex highlights the importance of foreign exchange innovation to the banking industry, "Our DCC solution is designed to be a simple add-on to the existing estates of banks and ATM operators. It provides an opportunity for banks to capture foreign exchange revenues at ATM whilst adding an incremental revenue stream cost effectively, which at the same time meets the customer demand to complete transactions in their domestic currency.
"With DCC already being fully operational in the Australian market, and now being launched in the US, we are expecting to also roll out the offering to our partners in Europe in 2008."