Once the domain of seasoned business travellers, multi-currency digital cards and wallets such as Instarem, Revolut, Wise and YouTrip have gone mainstream. They let travellers manage multiple currencies (useful if your trip involves a few border hops) and avoid poor exchange rates and foreign transaction fees.
The MileLion’s Wong appreciates the fact that these accounts “allow you to lock in today’s rates for tomorrow’s spend,” he said. “If I believe that today’s Singapore dollar to Japanese yen rate is good, I can go ahead and buy some yen now and spend it six months later. That is something that credit and debit cards don’t offer.”
However, Wong cautioned that there is a trade-off involved. “If you use a multi-currency debit card, you will enjoy better rates than a credit card, but [you won’t reap the same benefits]. If you use a traditional miles card, you’ll incur a 3.25 per cent foreign currency transaction fee, but then you’d also earn miles, as much as 4mpd in some cases,” he explained.
Jiax, too, is a fan of miles accumulation. “I usually prioritise miles as rewards,” he said. “The only time [I use the e-payment system] Changi Pay is in China, because it doesn’t charge you three per cent on transactions over 200 renminbi (S$36).” Changi Pay is an e-wallet built into the Changi Airport app that facilitates payment through the Alipay network.
There is also an increased risk of fraud, especially with multi-currency debit cards. “With debit cards, any transaction, whether legitimate or fraudulent, is immediately deducted from your balance. With credit cards, there’s no actual cash outflow from your end.”
