It may seem a little disingenuous that UK retailers are engaging in a business that has capped earning potential, but there is method to this madness. For starters, non-bank corporations have proven far more effective and efficient than banks for Forex transactions.
The fees and commissions are noticeably lower, and customers get the best rates on their currency transfers.
What does Asda Money Offer?
Asda offers a wide range of travel money services, known collectively as Asda Money. Among others they offer 0% commission, free click & collect services, next day home delivery, and buyback offers.
Customers can pre-order all their Forex by telephone and collect their money from any of the 130 Asda travel money outlets in the United Kingdom.
There are also additional services such as next day home delivery when clients order travel money of £500 +. Asda levies a charge of £3.95 on any orders under £499.99. The company has made this a key component of its business operations.
Asda provides clients with access to some 50+ currencies with 0% commission, no card fees when clients use the Asda money credit card, and free home delivery on any orders greater than £500.
With an imminent economic downturn expected in the UK, cost-effective money transfer services are proving to be a lucrative component of many UK department stores’ operations. Britons have turned away from banks and other traditional financial institutions in favour of low-cost money transfer services such as those offered by these department stores.
UK Retail Giants Cashing in on Travel Money Services
UK retail giant Tesco also runs a huge travel money service known as Tesco Bank. Tesco offers the widest possible range of currencies, including USD and EUR, with instant checking of exchange rates online.
Clients can simply enter the amount of currency they’d like to purchase, verify the rates and make a purchase. With Tesco, the minimum required order value must be at least £50, while the maximum is capped at £,2500 worth of foreign currency.
Online purchases of travel money are available, or clients can opt for the in-store purchase option. In total, there are 300 Travel Money Bureaus in the United Kingdom, and if clients wish to opt for the delivery service, a minimum purchase amount of £500 is required. Tesco Bank was recently awarded the Personal-Finance Awards Winner for 2016 and 2017 for best travel money provider in the United Kingdom.
Britons Love to Travel and UK Retailers Know It
Debenhams has gone even further with lucrative promotional offers designed to get clients to purchase and spend travel money in store. Given that Britons are noted globetrotters, Debenhams offers multiple vouchers with free cash, discounted rates and over 100 bureaus across the United Kingdom.
Like Asda, there is 0% commission. The Travel Money Card offered by Debenhams is a prepaid MasterCard – debit card – denominated in USD or EUR.
Since there are zero transactions fees for payments in home currencies, it is an attractive option for clients. The Travel Money Bureau services at Debenhams are a lucrative component of the company’s business operations. Other options such as buyback, money transfer, and updated exchange rates are readily available on site.
The exchange rates offered by banks are largely unfavourable to clients, and this makes it much easier for UK department stores to cash in where the banks are losing out.
With so many UK department stores offering travel money services to Britons, it’s important to compare travel money providers to gauge the best offers on the market.
Given that the UK economy is beginning to witness a contraction in retail sales, it’s especially important to major chain stores to promote the most cost-effective travel money services in the UK.
Banks cannot compete with non-bank entities in terms of cost, convenience, and promotional offers. That’s precisely why these mass-market chain stores are winning the race for the travel money market.