1 00:00:00,000 --> 00:00:02,340 Speaker 1: This is a C N A podcast, 2 00:00:04,450 --> 00:00:10,020 Speaker 1: multi currency card, credit card or cold hard cash. When 3 00:00:10,020 --> 00:00:10,780 Speaker 1: traveling 4 00:00:10,789 --> 00:00:12,260 Speaker 2: multi currency cards, 5 00:00:12,270 --> 00:00:17,270 Speaker 1: Top three things to consider when choosing a multi currency app. 6 00:00:17,280 --> 00:00:20,989 Speaker 2: What are you gonna use your money for charges? And 7 00:00:21,000 --> 00:00:23,650 Speaker 2: how many currencies you have access to? Will 8 00:00:23,650 --> 00:00:27,479 Speaker 1: you ever travel without cash ever again? 9 00:00:27,490 --> 00:00:30,060 Speaker 2: I'll bring my cash along some of it. At least 10 00:00:45,610 --> 00:00:49,570 Speaker 1: it's the Money Talks podcast with me Andrea Hing. Now, 11 00:00:49,570 --> 00:00:53,390 Speaker 1: when planning for a holiday, do you find yourself bringing 12 00:00:53,400 --> 00:00:56,710 Speaker 1: less cash to the money changer or perhaps you're not 13 00:00:56,710 --> 00:01:00,490 Speaker 1: even going to the money changer at all? That's because 14 00:01:00,500 --> 00:01:05,350 Speaker 1: multi currency cards and their accompanying mobile apps have made 15 00:01:05,350 --> 00:01:08,170 Speaker 1: it so convenient to buy things overseas. 16 00:01:08,194 --> 00:01:12,335 Speaker 1: Now, for the uninitiated, a multi currency account, lets you 17 00:01:12,334 --> 00:01:18,134 Speaker 1: transact in multiple currencies using competitive exchange rates and it 18 00:01:18,135 --> 00:01:22,215 Speaker 1: promises low transaction fees. They're easy to set up and 19 00:01:22,215 --> 00:01:26,045 Speaker 1: are even more attractive. Now due to a stronger saying dollar, 20 00:01:26,045 --> 00:01:29,185 Speaker 1: everyone's traveling now, right? So you can use it even 21 00:01:29,194 --> 00:01:30,780 Speaker 1: for online shopping. 22 00:01:31,020 --> 00:01:34,660 Speaker 1: But how much are we really saving by using a 23 00:01:34,660 --> 00:01:38,350 Speaker 1: multi currency app? How is it different from using your 24 00:01:38,350 --> 00:01:39,660 Speaker 1: good old credit card. 25 00:01:39,890 --> 00:01:43,390 Speaker 1: Let's get some answers from someone who's tried and tested 26 00:01:43,400 --> 00:01:48,520 Speaker 1: various multi currency apps for us. He's co founder of 27 00:01:48,520 --> 00:01:52,320 Speaker 1: Financial website, Dollars and Cents. Hey, Dinesh, welcome to the 28 00:01:52,320 --> 00:01:52,750 Speaker 1: Money Talks 29 00:01:52,750 --> 00:01:55,570 Speaker 2: podcast. Hey, thanks for having me on your show. Glad 30 00:01:55,580 --> 00:01:56,900 Speaker 2: to be here. Now, 31 00:01:56,910 --> 00:02:01,250 Speaker 1: when did you start using multi currency apps? Did you 32 00:02:01,250 --> 00:02:01,880 Speaker 1: start out by 33 00:02:01,905 --> 00:02:04,725 Speaker 1: holding a bit of standby cash in the wallet and 34 00:02:04,725 --> 00:02:07,615 Speaker 1: then also having the app on standby or was it 35 00:02:07,615 --> 00:02:09,905 Speaker 1: full on multi currency at all the 36 00:02:09,905 --> 00:02:12,864 Speaker 2: way, like many I eased into it. So at the start, 37 00:02:12,865 --> 00:02:15,195 Speaker 2: I also applied for a card and then I used 38 00:02:15,195 --> 00:02:17,125 Speaker 2: it on my first trip just to see how it went. 39 00:02:17,135 --> 00:02:19,065 Speaker 2: So I didn't go full on, I carry a lot 40 00:02:19,065 --> 00:02:21,725 Speaker 2: of cash in that instance. But over the years, I 41 00:02:21,735 --> 00:02:23,920 Speaker 2: find myself trusting it a little more 42 00:02:24,080 --> 00:02:26,120 Speaker 2: And also having a little bit more options. I think 43 00:02:26,120 --> 00:02:29,120 Speaker 2: there are about 10 or so kind of multi currency 44 00:02:29,120 --> 00:02:31,870 Speaker 2: accounts and wallets in Singapore. So I have a couple 45 00:02:31,870 --> 00:02:32,320 Speaker 2: of them. 46 00:02:32,730 --> 00:02:36,620 Speaker 2: So I do find myself bringing less cash on my 47 00:02:36,630 --> 00:02:38,679 Speaker 2: overseas trips nowadays. So, 48 00:02:38,680 --> 00:02:41,720 Speaker 1: how many multi currency apps have you tried 49 00:02:41,880 --> 00:02:44,060 Speaker 2: a little bit different? I think they're multi currency wallets 50 00:02:44,060 --> 00:02:46,829 Speaker 2: and then they're also accounts, right. So I think at 51 00:02:46,830 --> 00:02:49,280 Speaker 2: least half of them that's out there and even the 52 00:02:49,280 --> 00:02:51,540 Speaker 2: others that I haven't tried, I've done a bit of 53 00:02:51,540 --> 00:02:52,610 Speaker 2: research on them. What 54 00:02:52,610 --> 00:02:54,739 Speaker 1: stood out for you when trying out all these multi 55 00:02:54,740 --> 00:02:55,790 Speaker 1: currency for 56 00:02:55,790 --> 00:02:58,160 Speaker 2: me. The biggest one was how do we want to 57 00:02:58,160 --> 00:03:00,410 Speaker 2: use multi currency? How do we want to use our 58 00:03:00,410 --> 00:03:01,260 Speaker 2: foreign currencies 59 00:03:01,310 --> 00:03:05,170 Speaker 2: if you're traveling? We primarily just want to maybe exchange 60 00:03:05,180 --> 00:03:07,680 Speaker 2: a little bit earlier than our travel dates. I've heard 61 00:03:07,680 --> 00:03:10,530 Speaker 2: a lot of people, especially those going Japan this year, 62 00:03:10,540 --> 00:03:13,370 Speaker 2: they've seen the foreign currency or Japan exchange rates to 63 00:03:13,370 --> 00:03:16,460 Speaker 2: Singapore being very attractive. So they wanted to change early on. 64 00:03:16,470 --> 00:03:18,590 Speaker 2: So I think that's one use case, you just want 65 00:03:18,590 --> 00:03:21,980 Speaker 2: to keep the multi currency exchange at a good time 66 00:03:21,990 --> 00:03:24,960 Speaker 2: and then use it when you travel. That's one use case. 67 00:03:24,970 --> 00:03:27,210 Speaker 2: The other one is also you want to send either 68 00:03:27,210 --> 00:03:29,889 Speaker 2: local or foreign currencies to a foreign bank account. 69 00:03:30,100 --> 00:03:31,780 Speaker 2: So you want to send it to like an account 70 00:03:31,780 --> 00:03:35,339 Speaker 2: in Australia or Indonesia even that's another use case and 71 00:03:35,340 --> 00:03:37,620 Speaker 2: not all of them can do all the functions. So 72 00:03:37,620 --> 00:03:39,800 Speaker 2: you need to know what you want to use the 73 00:03:39,800 --> 00:03:44,050 Speaker 2: multi currency for either spending traveling, transferring what is 74 00:03:44,050 --> 00:03:46,510 Speaker 1: it? Right? So there isn't like a one size fits 75 00:03:46,535 --> 00:03:49,585 Speaker 1: all type of multi currency application out there. I think 76 00:03:49,585 --> 00:03:52,295 Speaker 2: possibly there are a few but depending on your needs, 77 00:03:52,295 --> 00:03:54,165 Speaker 2: you may want to hold one or two to serve 78 00:03:54,175 --> 00:03:55,385 Speaker 2: different functions as well. 79 00:03:55,395 --> 00:03:59,465 Speaker 1: So are the exchange rates on those multi currency cards 80 00:03:59,465 --> 00:04:03,815 Speaker 1: or apps or accounts really much better than say, exchanging 81 00:04:03,815 --> 00:04:06,715 Speaker 1: money at the arcade old school, which is probably the 82 00:04:06,715 --> 00:04:08,865 Speaker 1: best place to do so in Singapore, right? That's where 83 00:04:08,865 --> 00:04:11,255 Speaker 1: everyone flocks to and you want to change money, 84 00:04:11,265 --> 00:04:11,855 Speaker 2: correct? 85 00:04:12,060 --> 00:04:15,160 Speaker 2: So we did an interesting article, we literally wanted to 86 00:04:15,160 --> 00:04:18,230 Speaker 2: see whether the arcade exchange rate was superior to the 87 00:04:18,230 --> 00:04:21,610 Speaker 2: multi currency account exchange rate. So we did the experiment, 88 00:04:21,620 --> 00:04:24,310 Speaker 2: someone was at the arcade, someone was on their phone 89 00:04:24,310 --> 00:04:27,940 Speaker 2: seeing the exchange rate, I believe the exchange rate at 90 00:04:27,950 --> 00:04:31,180 Speaker 2: that point was just marginally more attractive if you went 91 00:04:31,180 --> 00:04:33,900 Speaker 2: down to the arcade. But then you have to consider, 92 00:04:33,900 --> 00:04:36,810 Speaker 2: if you're not working around the area, to consider traveling down, 93 00:04:36,820 --> 00:04:39,100 Speaker 2: that would be costly on its own already have to 94 00:04:39,110 --> 00:04:40,950 Speaker 2: make the time to do it. And 95 00:04:40,968 --> 00:04:42,508 Speaker 2: the difference might not even make up for like a 96 00:04:42,508 --> 00:04:45,078 Speaker 2: cap right there. Honestly, it's so marginal. 97 00:04:45,077 --> 00:04:46,818 Speaker 1: So not that big of a 98 00:04:46,818 --> 00:04:50,288 Speaker 2: difference unless you're changing a lot of money. I don't 99 00:04:50,288 --> 00:04:51,838 Speaker 2: think it would make a big dent. 100 00:04:51,848 --> 00:04:57,738 Speaker 1: What about if we compare multi currency cards to credit cards? 101 00:04:57,748 --> 00:05:02,457 Speaker 1: Are they equally accepted overseas? Like those credit card ads 102 00:05:02,458 --> 00:05:06,198 Speaker 1: that we see all the time or convenience and security? 103 00:05:06,208 --> 00:05:09,698 Speaker 1: Would the multi currency cards have the same 104 00:05:09,986 --> 00:05:11,866 Speaker 1: have the same function? I'm 105 00:05:11,866 --> 00:05:14,976 Speaker 2: not an expert on the foreign spending cards, but how 106 00:05:14,976 --> 00:05:17,776 Speaker 2: I think about it is that you certainly have to 107 00:05:17,776 --> 00:05:21,056 Speaker 2: game the system to be able to benefit. So unless 108 00:05:21,056 --> 00:05:22,946 Speaker 2: you're willing to put in that time and effort to 109 00:05:22,946 --> 00:05:25,956 Speaker 2: know which exact cards to spend, how to spend it. 110 00:05:25,956 --> 00:05:29,496 Speaker 2: Which kinds of expenses or brackets of expenses you need 111 00:05:29,496 --> 00:05:32,126 Speaker 2: to spend it on. You're probably better off not using 112 00:05:32,126 --> 00:05:34,006 Speaker 2: your credit cards. So that's how I do it. I 113 00:05:34,005 --> 00:05:36,516 Speaker 2: don't really want to spend all that time energy effort 114 00:05:36,516 --> 00:05:38,766 Speaker 2: to do that just to benefit from 115 00:05:38,784 --> 00:05:40,844 Speaker 2: maybe getting the extra cash back or points. 116 00:05:40,854 --> 00:05:43,563 Speaker 1: Okay. But how much are we really saving in terms 117 00:05:43,564 --> 00:05:45,904 Speaker 1: of transaction fees then? So 118 00:05:45,904 --> 00:05:47,684 Speaker 2: I think if you are able to game it, you 119 00:05:47,684 --> 00:05:50,664 Speaker 2: might see yourself ahead because you're collecting miles or something 120 00:05:50,664 --> 00:05:53,604 Speaker 2: like that. But let's say those are not in consideration, right? 121 00:05:53,613 --> 00:05:56,814 Speaker 2: Let's just say you're thinking of spending foreign currencies in 122 00:05:56,814 --> 00:06:00,164 Speaker 2: maybe cash or your mobile wallets versus a credit card. 123 00:06:00,174 --> 00:06:02,324 Speaker 2: You are definitely a lot better of spending in your 124 00:06:02,324 --> 00:06:05,514 Speaker 2: mobile wallets, cash because like you mentioned, there's going to 125 00:06:05,514 --> 00:06:07,674 Speaker 2: be foreign currency transaction fees, 126 00:06:07,692 --> 00:06:10,251 Speaker 2: there's going to be conversion fees as well. If you 127 00:06:10,252 --> 00:06:12,562 Speaker 2: do spend in a foreign currency, there tends to be 128 00:06:12,562 --> 00:06:16,231 Speaker 2: at least one if not even to foreign currency conversions. 129 00:06:16,242 --> 00:06:20,202 Speaker 2: So one for your conversion into USD and then back 130 00:06:20,202 --> 00:06:22,481 Speaker 2: into S G D. Right. Right. So you want to 131 00:06:22,482 --> 00:06:25,032 Speaker 2: actually pay in at the end of the day, but 132 00:06:25,032 --> 00:06:27,632 Speaker 2: they would make that foreign currency into U S D 133 00:06:27,642 --> 00:06:30,952 Speaker 2: and then into STD to calculate the amount. So that's 134 00:06:30,952 --> 00:06:34,671 Speaker 2: one way then there's the foreign currency transaction cost anyway. 135 00:06:34,682 --> 00:06:36,582 Speaker 2: And then I know there's always this function 136 00:06:36,600 --> 00:06:38,109 Speaker 2: and when you go on the counter and then you're 137 00:06:38,110 --> 00:06:40,410 Speaker 2: hit with, do you want to pay in your local 138 00:06:40,410 --> 00:06:43,539 Speaker 2: currency or do you want to stay in your Singapore dollars? Right. Yes. 139 00:06:43,540 --> 00:06:45,600 Speaker 1: And I never know which one to choose. 140 00:06:45,610 --> 00:06:48,190 Speaker 2: Yeah. In the same position when it first came out, 141 00:06:48,190 --> 00:06:50,340 Speaker 2: you know, when they first asked me, I remember this 142 00:06:50,339 --> 00:06:51,810 Speaker 2: was a long time ago when they first asked me, 143 00:06:51,810 --> 00:06:54,289 Speaker 2: I didn't have an answer instinctively. I thought if I 144 00:06:54,290 --> 00:06:56,950 Speaker 2: pay in Singapore dollars, that would be better off. But 145 00:06:56,950 --> 00:06:59,680 Speaker 2: having done the research, no, actually you always have to 146 00:06:59,680 --> 00:07:03,240 Speaker 2: pay in the foreign currency. So if you're ever in 147 00:07:03,240 --> 00:07:05,510 Speaker 2: that situation, just paying the foreign currency, 148 00:07:05,720 --> 00:07:07,710 Speaker 1: okay. I'm going to keep that in mind for my 149 00:07:07,710 --> 00:07:10,790 Speaker 1: next trip. So when you were using all those multi 150 00:07:10,790 --> 00:07:14,070 Speaker 1: currency cards and you were traveling, did you run into 151 00:07:14,070 --> 00:07:16,650 Speaker 1: any problems in some places when using 152 00:07:16,650 --> 00:07:19,880 Speaker 2: it? I think the biggest problems you might face is 153 00:07:19,880 --> 00:07:22,970 Speaker 2: one connection to the internet. I was in the U 154 00:07:22,970 --> 00:07:24,940 Speaker 2: S and I wanted to fill up the gas in 155 00:07:24,940 --> 00:07:27,820 Speaker 2: the car. So I was at the petrol station and 156 00:07:27,830 --> 00:07:30,040 Speaker 2: I needed to exchange a certain amount of money. So 157 00:07:30,040 --> 00:07:30,270 Speaker 2: I think 158 00:07:30,287 --> 00:07:32,907 Speaker 2: pay and I had already probably expanded everything in my 159 00:07:32,907 --> 00:07:35,467 Speaker 2: account by the time or maybe I didn't have enough. Right? 160 00:07:35,467 --> 00:07:38,007 Speaker 2: So if I didn't have internet connection or if it 161 00:07:38,007 --> 00:07:41,897 Speaker 2: wasn't very stable, then I couldn't make that instantaneous transfer 162 00:07:41,897 --> 00:07:45,657 Speaker 2: from my Singapore dollar account into my, I was using 163 00:07:45,657 --> 00:07:48,567 Speaker 2: you trip at that point into my youtube account and 164 00:07:48,567 --> 00:07:51,227 Speaker 2: then make that conversion on the youtube app and then 165 00:07:51,227 --> 00:07:54,087 Speaker 2: use my card to pay. Right. So there's a way 166 00:07:54,087 --> 00:07:54,840 Speaker 2: you can do it very 167 00:07:54,854 --> 00:07:58,204 Speaker 2: seamlessly and not have to keep additional foreign currency then 168 00:07:58,204 --> 00:08:01,464 Speaker 2: you absolutely need. So internet connection is one of them. 169 00:08:01,474 --> 00:08:04,424 Speaker 2: The other one is certain places might not accept cards. 170 00:08:04,424 --> 00:08:06,864 Speaker 2: You know, if you go to a market, you go 171 00:08:06,864 --> 00:08:09,374 Speaker 2: to certain countries where you can't really find a widespread 172 00:08:09,384 --> 00:08:11,854 Speaker 2: availability of card acceptance. 173 00:08:11,864 --> 00:08:13,984 Speaker 1: The digital infrastructure is not quite there. 174 00:08:13,994 --> 00:08:15,794 Speaker 2: Yeah. So that might be an issue 175 00:08:15,794 --> 00:08:18,544 Speaker 1: as well. I think it really depends on where you're going. 176 00:08:18,544 --> 00:08:19,304 Speaker 1: You need to be really 177 00:08:19,421 --> 00:08:21,961 Speaker 1: at the end of it all. It doesn't hurt to 178 00:08:21,961 --> 00:08:24,381 Speaker 1: have that standby cash in your pocket. 179 00:08:24,391 --> 00:08:27,681 Speaker 2: Yeah, I mean, I would advocate everyone brings standby cash 180 00:08:27,681 --> 00:08:31,231 Speaker 2: for sure. The cash kind of supplements the cards you 181 00:08:31,231 --> 00:08:33,641 Speaker 2: spend primarily on the cards and then your cash is 182 00:08:33,641 --> 00:08:36,461 Speaker 2: just back up emergency, whatever you call it. Was it 183 00:08:36,461 --> 00:08:39,521 Speaker 1: strange to have to whip out cash to pay for 184 00:08:39,521 --> 00:08:42,001 Speaker 1: stuff when you are traveling? Do you think you'll ever 185 00:08:42,001 --> 00:08:43,990 Speaker 1: travel without cash ever again? 186 00:08:44,150 --> 00:08:46,340 Speaker 2: It was a recent trip. I went to Langkawi. It 187 00:08:46,340 --> 00:08:48,559 Speaker 2: was a very last minute trip for me. Actually, I 188 00:08:48,559 --> 00:08:51,750 Speaker 2: booked on the day itself. My wife was actually supposed 189 00:08:51,750 --> 00:08:54,179 Speaker 2: to go and one of her friends backed out on 190 00:08:54,179 --> 00:08:56,960 Speaker 2: the day. Itself. And then my wife was distraught and 191 00:08:56,960 --> 00:08:58,850 Speaker 2: just looked at me saying she can't travel. I was like, 192 00:08:59,350 --> 00:09:02,810 Speaker 2: yeah, sure, I'll go booked on the day itself. I 193 00:09:02,929 --> 00:09:05,770 Speaker 2: didn't have any Malaysian ringgit with me and I went 194 00:09:05,770 --> 00:09:07,840 Speaker 2: there at the airport. I didn't have any money to 195 00:09:07,840 --> 00:09:10,350 Speaker 2: take local cab back to the hotel, but I could 196 00:09:10,360 --> 00:09:12,890 Speaker 2: book it on, grab link my card and just pay 197 00:09:12,890 --> 00:09:14,430 Speaker 2: for it in foreign currency. 198 00:09:14,440 --> 00:09:17,280 Speaker 1: So this is what you mean about gaming the system, right? 199 00:09:17,280 --> 00:09:20,050 Speaker 1: This is another way of doing it without actually having 200 00:09:20,050 --> 00:09:21,400 Speaker 1: cash available. 201 00:09:21,410 --> 00:09:22,240 Speaker 2: So you wouldn't 202 00:09:22,260 --> 00:09:24,920 Speaker 2: to be able to pay for cap right in your car, right? 203 00:09:24,929 --> 00:09:27,490 Speaker 2: But since I had no other choice and grab is 204 00:09:27,490 --> 00:09:30,030 Speaker 2: available there, I could have linked it to any other. 205 00:09:30,040 --> 00:09:31,530 Speaker 2: Let's say I was in the U S. I linked 206 00:09:31,530 --> 00:09:33,970 Speaker 2: it to the lift at at the airport itself. So 207 00:09:33,970 --> 00:09:36,230 Speaker 2: that was fine. So in the digital age that we 208 00:09:36,230 --> 00:09:38,339 Speaker 2: live in today, I don't think it's a big barrier anymore. 209 00:09:38,350 --> 00:09:40,910 Speaker 1: On that note, you said you have to at the 210 00:09:40,910 --> 00:09:43,520 Speaker 1: current moment and you've tried about half of what's out 211 00:09:43,520 --> 00:09:45,170 Speaker 1: there in the market already. 212 00:09:45,380 --> 00:09:49,470 Speaker 1: Should we be getting more than one multi currency card 213 00:09:49,470 --> 00:09:52,439 Speaker 1: or account? The same way some of us have multiple 214 00:09:52,440 --> 00:09:55,450 Speaker 1: credit cards and multiple bank accounts 215 00:09:55,460 --> 00:09:58,150 Speaker 2: for me. I say why not? So I do use 216 00:09:58,150 --> 00:10:01,439 Speaker 2: to predominantly but you could even want something that's linked 217 00:10:01,440 --> 00:10:04,709 Speaker 2: to your local bank account. So even DBS and you'll be, 218 00:10:04,710 --> 00:10:04,990 Speaker 2: they have, 219 00:10:05,000 --> 00:10:08,929 Speaker 2: there are multi currency accounts and mobile apps as well. 220 00:10:08,940 --> 00:10:11,860 Speaker 2: So if you use, you'll be bank and you want 221 00:10:11,870 --> 00:10:14,530 Speaker 2: your multi currency to be quite seamless, then I think 222 00:10:14,530 --> 00:10:16,450 Speaker 2: it makes sense. So you don't need a separate app 223 00:10:16,450 --> 00:10:19,010 Speaker 2: as well. But if you already comfortable using an app, 224 00:10:19,010 --> 00:10:21,520 Speaker 2: there's no reason that you need to immediately change. I 225 00:10:21,520 --> 00:10:24,110 Speaker 2: think it's based on how comfortable, how convenient it is 226 00:10:24,110 --> 00:10:24,620 Speaker 2: for you. 227 00:10:28,470 --> 00:10:29,550 Speaker 2: Hello, my name is Steve 228 00:10:29,550 --> 00:10:32,020 Speaker 1: Lie and I'm Teresa Tang. And we are the hosts 229 00:10:32,020 --> 00:10:35,090 Speaker 1: of Sienna correspondent, a podcast that takes you to the 230 00:10:35,090 --> 00:10:38,650 Speaker 1: heart of the work our correspondents do across the globe 231 00:10:38,660 --> 00:10:42,370 Speaker 1: from China's COVID response to the Childcare Center massacre in 232 00:10:42,370 --> 00:10:43,930 Speaker 1: Thailand from the fall of now 233 00:10:44,530 --> 00:10:48,110 Speaker 1: to the rise of Anwar Ibrahim as Malaysia's Prime Minister, 234 00:10:48,240 --> 00:10:51,450 Speaker 1: we speak to the people at the reporting front lines. 235 00:10:51,460 --> 00:10:54,130 Speaker 1: So if you want to know how the biggest global 236 00:10:54,130 --> 00:10:57,530 Speaker 1: stories unfold, make sure you follow or subscribe to us 237 00:10:57,630 --> 00:10:59,480 Speaker 1: wherever you get your podcasts. 238 00:11:04,850 --> 00:11:08,820 Speaker 1: So I read that I can also use a multi 239 00:11:08,820 --> 00:11:12,980 Speaker 1: currency card to shop online. So right now when I 240 00:11:12,980 --> 00:11:17,240 Speaker 1: shop overseas website, so any foreign website where I'm looking 241 00:11:17,240 --> 00:11:18,550 Speaker 1: to buy something 242 00:11:18,770 --> 00:11:23,140 Speaker 1: right now, I'm just paying the converted sing dollar price 243 00:11:23,150 --> 00:11:26,360 Speaker 1: on the website because it detects where I'm located, which 244 00:11:26,360 --> 00:11:29,500 Speaker 1: is Singapore. So it shows me the sing dollar denomination. 245 00:11:29,510 --> 00:11:32,329 Speaker 1: That's the converted price I'm paying when I'm buying a 246 00:11:32,330 --> 00:11:36,290 Speaker 1: bag or clothes from my favorite brands overseas. Am I 247 00:11:36,300 --> 00:11:37,510 Speaker 1: losing money 248 00:11:37,525 --> 00:11:42,355 Speaker 1: doing that? Should I have used my multi currency card? Instead? 249 00:11:42,365 --> 00:11:42,575 Speaker 1: We 250 00:11:42,575 --> 00:11:45,275 Speaker 2: did do this experiment a few years ago now where 251 00:11:45,275 --> 00:11:47,855 Speaker 2: we tried to buy the same pair of shoes three 252 00:11:47,855 --> 00:11:50,605 Speaker 2: different ways. So we did it with like credit card, 253 00:11:50,615 --> 00:11:53,954 Speaker 2: we did it with a multi currency account and we 254 00:11:53,955 --> 00:11:56,275 Speaker 2: bought it in a local versus foreign currency. 255 00:11:56,450 --> 00:11:58,660 Speaker 2: And we did find like one of the most cost 256 00:11:58,660 --> 00:12:01,430 Speaker 2: effective ways is to use your multi currency account to 257 00:12:01,429 --> 00:12:03,580 Speaker 2: pay for it in that foreign currency. 258 00:12:03,590 --> 00:12:05,480 Speaker 1: How was it more effective? Okay. You 259 00:12:05,480 --> 00:12:09,309 Speaker 2: don't save a huge amount. I personally believe you should 260 00:12:09,309 --> 00:12:12,079 Speaker 2: always choose the foreign currency because you might get a 261 00:12:12,080 --> 00:12:13,970 Speaker 2: little bit of a better deal. But in any case, 262 00:12:13,970 --> 00:12:16,030 Speaker 2: I think if you use the website often enough, you 263 00:12:16,030 --> 00:12:17,280 Speaker 2: can flip between the 264 00:12:17,296 --> 00:12:19,756 Speaker 2: to rates and then actually check on your phone whether 265 00:12:19,756 --> 00:12:21,866 Speaker 2: you're getting a better rate. You can literally do that 266 00:12:21,876 --> 00:12:24,746 Speaker 2: within a few seconds nowadays. So you can actually negate 267 00:12:24,746 --> 00:12:26,736 Speaker 2: the effect of that when paying with a foreign or 268 00:12:26,736 --> 00:12:29,476 Speaker 2: multi currency account. The part about credit card, I think 269 00:12:29,476 --> 00:12:32,036 Speaker 2: you definitely worse off if you pay through credit card 270 00:12:32,046 --> 00:12:34,175 Speaker 2: again because of the same charges that we think it 271 00:12:34,176 --> 00:12:37,186 Speaker 2: still counts as a foreign currency transaction and then their 272 00:12:37,196 --> 00:12:38,130 Speaker 2: conversion fees 273 00:12:38,142 --> 00:12:38,972 Speaker 2: involved as well. 274 00:12:38,982 --> 00:12:42,881 Speaker 1: Have you ever encountered paying for something online using the 275 00:12:42,881 --> 00:12:47,212 Speaker 1: multi currency card and it gets rejected because I know 276 00:12:47,222 --> 00:12:49,662 Speaker 1: that there are some U S websites that don't even 277 00:12:49,662 --> 00:12:53,521 Speaker 1: accept our Singapore credit cards. So, have you heard of 278 00:12:53,522 --> 00:12:57,502 Speaker 1: any stories or experiences where the multi currency card gets 279 00:12:57,502 --> 00:12:58,990 Speaker 1: rejected for the same reason? 280 00:12:59,280 --> 00:13:01,980 Speaker 2: Yeah, I'm just reaching out for my multi currency car. 281 00:13:01,990 --> 00:13:04,540 Speaker 2: It states Mastercard on it. So it should be on 282 00:13:04,540 --> 00:13:08,010 Speaker 2: the Mastercard Network. I haven't encountered it to be honest 283 00:13:08,020 --> 00:13:10,100 Speaker 2: and I think it shouldn't be a big problem because 284 00:13:10,100 --> 00:13:13,160 Speaker 2: it's on either the Visa Mastercard Network as well, which 285 00:13:13,160 --> 00:13:15,380 Speaker 2: is globally accepted or available. 286 00:13:15,390 --> 00:13:19,370 Speaker 1: So then would you say that multi currency apps or 287 00:13:19,370 --> 00:13:22,320 Speaker 1: accounts take all the boxes as the top choice to 288 00:13:22,320 --> 00:13:26,700 Speaker 1: pay for things when traveling or are there certain things 289 00:13:26,710 --> 00:13:27,110 Speaker 1: that 290 00:13:27,127 --> 00:13:29,256 Speaker 1: people need to keep in mind, 291 00:13:29,256 --> 00:13:31,117 Speaker 2: you need to know what you're using the card or 292 00:13:31,117 --> 00:13:33,897 Speaker 2: account for? So once you know, using it from my travels, 293 00:13:33,897 --> 00:13:36,547 Speaker 2: then it's a good way to like exchange money without 294 00:13:36,547 --> 00:13:38,467 Speaker 2: having to keep stacks of it. Maybe you're going to 295 00:13:38,467 --> 00:13:40,747 Speaker 2: Japan this year. You see a good exchange rate today. 296 00:13:40,756 --> 00:13:42,907 Speaker 2: Sometimes we get very caught up in the situation. We 297 00:13:42,907 --> 00:13:44,877 Speaker 2: just want to change our money as soon as possible 298 00:13:44,886 --> 00:13:46,916 Speaker 2: or other times like me, I just don't know when 299 00:13:46,927 --> 00:13:48,447 Speaker 2: is the best time to change it? I don't think 300 00:13:48,447 --> 00:13:51,407 Speaker 2: anyone would know because it's hard to guess. Right. So 301 00:13:51,407 --> 00:13:53,707 Speaker 2: what you can do is you can dollar cost average 302 00:13:53,717 --> 00:13:54,959 Speaker 2: into the foreign currency, 303 00:13:54,974 --> 00:13:56,534 Speaker 2: right on your phone itself. So you don't have to 304 00:13:56,534 --> 00:13:59,384 Speaker 2: continuously go down to the money changer, whether it's arcade 305 00:13:59,384 --> 00:14:01,154 Speaker 2: or somewhere closer to your place. You don't have to 306 00:14:01,154 --> 00:14:03,753 Speaker 2: worry about that because you're never going down anyway, just 307 00:14:03,764 --> 00:14:06,494 Speaker 2: logging into the app and then just exchange it periodically 308 00:14:06,494 --> 00:14:08,384 Speaker 2: until you actually travel. So then you don't have to 309 00:14:08,384 --> 00:14:10,704 Speaker 2: worry about. Are you getting the best exchange rate? You 310 00:14:10,703 --> 00:14:13,414 Speaker 2: just averaging out the exchange rate that you get? It 311 00:14:13,414 --> 00:14:16,364 Speaker 2: gives me more comfort knowing I'm doing that. Then secondly, 312 00:14:16,364 --> 00:14:18,603 Speaker 2: if you want to send it to a bank account overseas, 313 00:14:18,604 --> 00:14:21,784 Speaker 2: so I actually helped my helper in Singapore send money 314 00:14:21,784 --> 00:14:22,810 Speaker 2: back home. I think it's 315 00:14:22,821 --> 00:14:26,221 Speaker 2: much cheaper or more convenient way for her to do it. 316 00:14:26,231 --> 00:14:28,431 Speaker 2: I think she gets a better deal as well and 317 00:14:28,431 --> 00:14:31,601 Speaker 2: she doesn't have to queue up foreign currency transfer or 318 00:14:31,611 --> 00:14:34,591 Speaker 2: use some other methods at home. Sometimes that's costly. 319 00:14:34,601 --> 00:14:37,960 Speaker 1: Um I mean, I've heard of digital remittances. It's a 320 00:14:37,961 --> 00:14:41,811 Speaker 1: very well developed infrastructure now so they can send money 321 00:14:41,811 --> 00:14:45,681 Speaker 1: across and have it converted at more competitive rates. So 322 00:14:45,691 --> 00:14:48,411 Speaker 1: we've talked about using it for traveling. We've talked about 323 00:14:48,411 --> 00:14:50,661 Speaker 1: using it for online shopping. 324 00:14:50,810 --> 00:14:55,070 Speaker 1: What are the other various use cases of multi currency apps? 325 00:14:55,070 --> 00:14:58,220 Speaker 1: What are the transactions? Can we use a multi currency 326 00:14:58,220 --> 00:14:58,590 Speaker 1: account 327 00:14:58,590 --> 00:15:00,400 Speaker 2: for? I think we can think of it to other 328 00:15:00,400 --> 00:15:03,630 Speaker 2: ways if we just want to hold a foreign currency. 329 00:15:03,640 --> 00:15:06,340 Speaker 2: My wife is from Hong Kong. So actually just holding 330 00:15:06,350 --> 00:15:09,290 Speaker 2: or being able to transfer between Singapore and Hong Kong 331 00:15:09,290 --> 00:15:11,390 Speaker 2: dollars as and when we need so that we can 332 00:15:11,390 --> 00:15:15,140 Speaker 2: transfer it to her local account of her parents context 333 00:15:15,140 --> 00:15:17,990 Speaker 2: in Hong Kong or do it similarly in Singapore, except 334 00:15:17,990 --> 00:15:19,580 Speaker 2: the Hong Kong dollars quite easily. 335 00:15:19,595 --> 00:15:23,455 Speaker 2: I think that's important if you are maybe an expert 336 00:15:23,465 --> 00:15:27,785 Speaker 2: or if you have a very deep connection to another country. 337 00:15:27,795 --> 00:15:30,705 Speaker 2: So I find that that's a useful account to have 338 00:15:30,715 --> 00:15:32,984 Speaker 2: other use case scenarios is maybe you just want to 339 00:15:32,985 --> 00:15:35,905 Speaker 2: hold the currency. So if we have a strong conviction 340 00:15:35,915 --> 00:15:39,025 Speaker 2: that another currency will appreciate or will perform much better 341 00:15:39,025 --> 00:15:42,285 Speaker 2: than Singapore dollars, that's an option. Another scenario that I 342 00:15:42,285 --> 00:15:45,495 Speaker 2: can see as benefiting is if we just want to 343 00:15:45,505 --> 00:15:48,365 Speaker 2: fund our investments with foreign currencies 344 00:15:48,580 --> 00:15:51,370 Speaker 2: because we're getting a poor rate with our brokerage is 345 00:15:51,380 --> 00:15:53,180 Speaker 2: when we make investments. So we want to fund our 346 00:15:53,180 --> 00:15:55,950 Speaker 2: brokerage account with us D rather than funded with S 347 00:15:55,950 --> 00:15:58,350 Speaker 2: G D and then transfer it, make the foreign exchange 348 00:15:58,350 --> 00:16:02,030 Speaker 2: transfer within the brokerage itself. Okay, tell me more about that. Okay. 349 00:16:02,030 --> 00:16:04,750 Speaker 2: So in the past, what was common is you just 350 00:16:04,750 --> 00:16:08,970 Speaker 2: fund your account or pay for your investments in Singapore dollars, right? 351 00:16:08,970 --> 00:16:11,540 Speaker 2: By your investments could be a US dollar or Us 352 00:16:11,550 --> 00:16:12,610 Speaker 2: stock or 353 00:16:12,635 --> 00:16:14,715 Speaker 2: GBP or Hong Kong dollars could be any of these 354 00:16:14,715 --> 00:16:16,695 Speaker 2: foreign currencies, but you have to pay for it or 355 00:16:16,695 --> 00:16:20,155 Speaker 2: you typically pay for it. So the price obviously is 356 00:16:20,165 --> 00:16:23,425 Speaker 2: charged to you after the foreign currency exchange has been applied. 357 00:16:23,435 --> 00:16:25,585 Speaker 2: So if you feel like I'm not getting a good 358 00:16:25,585 --> 00:16:29,575 Speaker 2: deal on this foreign currency exchange that my broker is charging, 359 00:16:29,585 --> 00:16:32,075 Speaker 2: you could opt for other brokers that accept you to 360 00:16:32,075 --> 00:16:34,775 Speaker 2: fund account in USD itself. So 361 00:16:34,775 --> 00:16:36,665 Speaker 1: that means you are sort of 362 00:16:36,690 --> 00:16:39,750 Speaker 1: cutting out the middleman in a way or you're just 363 00:16:39,750 --> 00:16:45,040 Speaker 2: choosing, cutting out the uncertainty of different exchange transfer, maybe 364 00:16:45,040 --> 00:16:47,160 Speaker 2: sometimes you don't really know what the amount is going 365 00:16:47,160 --> 00:16:48,790 Speaker 2: to be. But when you do it yourself, you know 366 00:16:48,790 --> 00:16:49,520 Speaker 2: exactly what the 367 00:16:49,520 --> 00:16:54,290 Speaker 1: amount is okay. That's good advice. Any final parting thoughts 368 00:16:54,300 --> 00:16:58,700 Speaker 1: as to how listeners can think about using multi currency apps, 369 00:16:58,710 --> 00:17:00,729 Speaker 1: things like safety risks. For 370 00:17:00,740 --> 00:17:03,390 Speaker 1: example, I mean, if you're using a smartphone app to 371 00:17:03,390 --> 00:17:07,730 Speaker 1: transact a lot of stuff, obviously, cybersecurity comes to mind 372 00:17:07,740 --> 00:17:10,320 Speaker 1: your money is in there, your card details are in there, 373 00:17:10,320 --> 00:17:13,460 Speaker 1: your personal info is in there. Is that a risk 374 00:17:13,460 --> 00:17:15,790 Speaker 1: we should look at as well? Yeah, 375 00:17:15,790 --> 00:17:17,770 Speaker 2: I think that you hit the nail on the head. 376 00:17:17,780 --> 00:17:21,800 Speaker 2: You have to take cybersecurity very importantly because there's always 377 00:17:21,800 --> 00:17:24,800 Speaker 2: a case where you get scanned or there's a fraudulent transaction, 378 00:17:24,980 --> 00:17:27,640 Speaker 2: which is also why multi currency is great actually because 379 00:17:27,640 --> 00:17:29,890 Speaker 2: you can think of it as you can only lose 380 00:17:29,900 --> 00:17:32,480 Speaker 2: how much you already have in your multi currency account. 381 00:17:32,490 --> 00:17:34,750 Speaker 2: It's not like a credit card where someone's going to 382 00:17:34,760 --> 00:17:37,180 Speaker 2: charge you up to your limit. You can only lose 383 00:17:37,180 --> 00:17:39,470 Speaker 2: what you have inside. Whereas credit card, there might be 384 00:17:39,470 --> 00:17:41,660 Speaker 2: some ways to get back your funds, you know, to 385 00:17:41,660 --> 00:17:45,139 Speaker 2: report the transaction that's fraudulent, you can get it back. 386 00:17:45,150 --> 00:17:48,190 Speaker 2: Whereas in multi currency accounts, you may lose that funds 387 00:17:48,200 --> 00:17:48,520 Speaker 2: and then 388 00:17:48,530 --> 00:17:50,880 Speaker 2: take it up with the provider and then see what 389 00:17:50,880 --> 00:17:52,500 Speaker 2: they can do about it. Right. So there's two ways 390 00:17:52,500 --> 00:17:55,250 Speaker 2: to think about it passing ports. I think once when 391 00:17:55,250 --> 00:17:58,070 Speaker 2: I use my multi currency account, there were some like 392 00:17:58,070 --> 00:18:01,280 Speaker 2: suspicious transactions going on. But as soon as I reported it, 393 00:18:01,280 --> 00:18:03,459 Speaker 2: I think they got to it fairly quickly and they 394 00:18:03,470 --> 00:18:06,369 Speaker 2: reversed the transaction fairly quickly. So I think the ones 395 00:18:06,369 --> 00:18:10,240 Speaker 2: that in Singapore regulated by Singapore authorities, you can trust 396 00:18:10,240 --> 00:18:12,000 Speaker 2: them a little bit. They also don't hold your 397 00:18:12,080 --> 00:18:14,330 Speaker 2: funds, those that aren't banks, they also don't hold your 398 00:18:14,330 --> 00:18:16,859 Speaker 2: funds as part of their operating cash flow. So they 399 00:18:16,859 --> 00:18:19,840 Speaker 2: hold it separately. So they're not using your funds. So 400 00:18:19,850 --> 00:18:22,280 Speaker 2: in case you're worried that company ever goes back to 401 00:18:22,280 --> 00:18:25,480 Speaker 2: what happened to your fund, it's not part of their assets, right? 402 00:18:25,480 --> 00:18:27,540 Speaker 2: They're not going to lose it. And the last thing 403 00:18:27,540 --> 00:18:29,890 Speaker 2: I have to say is that the seeing works very 404 00:18:29,890 --> 00:18:31,800 Speaker 2: well for me because I never know when the best 405 00:18:31,800 --> 00:18:34,350 Speaker 2: time is to exchange my money. And at the same 406 00:18:34,350 --> 00:18:35,620 Speaker 2: time when I come back in the past, 407 00:18:35,630 --> 00:18:37,530 Speaker 2: I always tend to feel like I need to spend 408 00:18:37,530 --> 00:18:40,129 Speaker 2: all my foreign currencies at the airport now because what 409 00:18:40,130 --> 00:18:41,880 Speaker 2: am I going to do with this? Yes, 410 00:18:41,890 --> 00:18:44,940 Speaker 1: you're always looking for the donation tin in the airport 411 00:18:44,950 --> 00:18:46,630 Speaker 1: to get rid of your final bits of cash. 412 00:18:46,640 --> 00:18:51,280 Speaker 2: Correct? Either donated or by a drain. Find something that 413 00:18:51,280 --> 00:18:53,540 Speaker 2: cost the exact amount or as close to the exact 414 00:18:53,540 --> 00:18:56,119 Speaker 2: amount that you have. I think we've all gone through that. 415 00:18:56,130 --> 00:18:59,179 Speaker 2: So two things, multi currency account helps their one. 416 00:18:59,340 --> 00:19:01,859 Speaker 2: You can just not think about spending it. You can 417 00:19:01,859 --> 00:19:05,250 Speaker 2: just transfer everything that is important country back to Singapore 418 00:19:05,250 --> 00:19:08,020 Speaker 2: dollars to use it here without much of a transaction cost. 419 00:19:08,020 --> 00:19:09,230 Speaker 2: I think it's quite competitive. 420 00:19:10,080 --> 00:19:12,070 Speaker 2: Secondly, you can always just hold it there. It's not 421 00:19:12,070 --> 00:19:14,340 Speaker 2: like something physical that you store in your drawer once 422 00:19:14,340 --> 00:19:16,360 Speaker 2: you're home and lose it or forget about it. It 423 00:19:16,359 --> 00:19:18,580 Speaker 2: still always sits there and whenever you make a foreign 424 00:19:18,580 --> 00:19:22,050 Speaker 2: currency transactions, let's say you're spending rather than traveling there, 425 00:19:22,050 --> 00:19:23,050 Speaker 2: you can also use it. 426 00:19:23,060 --> 00:19:26,110 Speaker 1: That's right. I guess in a way you can think 427 00:19:26,109 --> 00:19:28,940 Speaker 1: of it as still physical cash that you come home. 428 00:19:28,940 --> 00:19:31,790 Speaker 1: You do put it aside except this time it's not 429 00:19:31,790 --> 00:19:33,830 Speaker 1: going to take up space in your drawer and collect dust. 430 00:19:33,840 --> 00:19:36,350 Speaker 1: It's digital. You don't have to think about it and 431 00:19:36,350 --> 00:19:37,260 Speaker 1: you can just keep it 432 00:19:37,410 --> 00:19:39,609 Speaker 1: and you don't have to worry about whether you're going 433 00:19:39,609 --> 00:19:41,730 Speaker 1: to get laughed at when you bring that small little 434 00:19:41,730 --> 00:19:44,500 Speaker 1: amount to the money changer to get it changed back 435 00:19:44,500 --> 00:19:45,450 Speaker 1: to S G D. 436 00:19:45,460 --> 00:19:47,690 Speaker 2: Yeah. Exactly. You can just change it on your app 437 00:19:47,700 --> 00:19:48,660 Speaker 2: or even spend it 438 00:19:48,869 --> 00:19:53,430 Speaker 1: convenient, cashless and creative. Perhaps multi currency apps are the 439 00:19:53,430 --> 00:19:58,420 Speaker 1: new three CS in the digital age. But are they must? Well, 440 00:19:58,420 --> 00:20:01,550 Speaker 1: if you're into financial hacks could be worth the time, 441 00:20:01,560 --> 00:20:04,639 Speaker 1: we hope you gained some nifty tips and tricks on 442 00:20:04,640 --> 00:20:08,970 Speaker 1: using a multi currency app. And for those, we thank Danny, 443 00:20:08,970 --> 00:20:11,280 Speaker 1: co founder of Financial website Dollars. 444 00:20:11,300 --> 00:20:14,240 Speaker 1: And since, and thanks to you to our listener. If 445 00:20:14,240 --> 00:20:17,750 Speaker 1: you've enjoyed this episode of Money Talks, there's more content 446 00:20:17,750 --> 00:20:21,580 Speaker 1: for you to enjoy. Simply follow us on Apple podcasts 447 00:20:21,590 --> 00:20:24,939 Speaker 1: or Spotify and give us five stars or leave a 448 00:20:24,940 --> 00:20:28,010 Speaker 1: review while you're there. The team behind Money Talks is 449 00:20:28,010 --> 00:20:33,730 Speaker 1: Joanne Chan, Jacqueline Chan Christina Robert and I'm Andrea Ping.