Startup launches debit card that promises to make your holidays cheaper

The CEO says it's unfair to punish customers for wanting to spend their own money abroad. Photo / 123rf

A UK-based startup has launched a debit card in Australia and New Zealand that promises to make holidays about 11 times cheaper for travellers, compared to similar offers from other banks.

TransferWise says its new debit card will save Kiwi travellers hundreds of dollars.

According to the company, a family on holiday in Europe, for example, can rack up more than $300 in currency exchange fees and other costs, when spending $5000.

"With TransferWise, it would cost them only $55," the company says, according to the Daily Mail.

TransferWise says it doesn't charge monthly fees and has no sign-up fees or transaction fees either.

The card also gives holders free withdrawals of up to $350 every 30 days, anywhere in the world, as well as the ability to hold 40 currencies.

Most cards are said to only allow up to 10 currencies.

Australian families lost more than $2 BILLION in foreign transaction fees last year. A new card promises to make travel cheaper, @EffieZahos has the details. #9Today pic.twitter.com/ZNGQqfi5M1

— The Today Show (@TheTodayShow) August 14, 2019

Kristo Kaarmann, TransferWise's CEO and co-founder, said it's unfair of banks to punish customers for wanting to spend their own money abroad.

"We've made it incredibly cheap and transparent to spend money internationally with our card, even if you don't have the right currency," he said.

"If you have the balance of the currency for the country you're in, it will simply deduct the amount from that.

"If you don't have any of the domestic currency, the card will automatically convert the currency for you at the same rate you see on Google."