Multi Currency Card
It will be a great feature to use neat is a multi Currency card for example to choose between US dollars Hong Kong dollars pounds and euros.
This should be possible for each transaction.
Similar to Revolut.
Can I ask you why/when you would use this?
For me, the vendor usually decides the currency; the past weeks I used Neat to pay HKD, USD, Eur and TWD without problem, and without choosing anything.
The only exception is that abroad you often get the option to use "local" or "bill in your own", which is confusing, and Iris confirmed in another topic that "local" is the best (because you get the best exchange rate).
The point is that Neat's major competitor offers currency switching between three currencies (USD-GBP-EUR) so that you can pay in the merchant's currency and avoid the 1.5% foreign currency exchange fee (which Neat has).
However, they didn't have HKD or any Asian currencies anyway so that option didn't make sense for me. And of course Neat needs to earn some money too, so this 1.5% fee is reasonable. All banks in HK if I remember correctly charge this fee.
We actually get charged that fee so don't really make any money out of it. The reason why it's still cheaper than most banks here is because they charge a higher fee and/or use their own exchange rate (which is worse than MasterCard rate which we use).
Other startups abroad also get charged a similar fee but subsidize it, though we're already seeing them move to a subscription model now where the user pays a monthly fee and in return gets certain benefits.
Then on multi-currency or no fee foreign transactions. These are 2 ways to go that would be basically the same in terms of cost-effectiveness for the user, but from what we have noticed the perception is different.
- No fee on foreign transactions (and using MasterCard / market exchange rate)
- Multi-currency account. You have different wallets with different currencies in your account and can exchange them any time at that time's MasterCard / market exchange rate. Whenever you purchase abroad it will be taken from the local currency's wallet.
Would the 2 options be equally good or prefer one over the other?
@iris_neat I prefer option 2
I definitely want option 1 :) I don't want that extra hassle which so far doesn't give me any advantage.
@bao_hongkong It gives an advantage. I use this this option with Revolut.
I can pay GBP amounts in GBP, EUR-amounts in EUR and USD-amounts in USD. I can receive money also in this 3 currencies. the exchange rate is quite good. and in option 1 and 2 you have the same exchange rate, so why do not use it with 3 wallets.
Your reasoning is quite interesting to me :)
If you have the same exchange rate, the advantage you mention disappears, so why not do it with one wallet?
(it's still early so I may be missing or misreading something, in which case I apologize)
To be very honest, I never had that option so I cannot fully judge. Standard & Chartered does it for me, which annoys me in fact: I receive money in Euro and then have to transfer it to HKD to be able to use it. To me, this is a new experience; the banks I had so far (in Europe and Caribbean) didn't do this. I've been doing this now for half a year and I do not see any advantage, only some disadvantage, including that if I receive money and want to use it for instance to pay Neat, I have to make 2 transactions: first convert the money to HKD, then transfer to Neat.
So I guess that
- if you have the wallets and want to pay in GBP, but you don't have money in the GBP wallet, you first have to transfer money from Euro to GBP, then pay in GBP.
- I on the other hand just pay, and everything is transparent to me. This also means I don't see the higher exchange rate, but in the question above I understand the result would be the same.
So given the choice between extra clicks or no extra clicks... I choose ease of use.
If you have no GBP in your wallet, you can for sure pay in GBP but the main currency of the card will be used.
I'm often in London and I refill the GBP Wallet with an amount. Now, when I pay in London all my spendings are taken from the amount I put on the wallet before.
I have a on statement for every wallet, so it is easy for me to give the statement from my U.K. Wallet to my boss and he could not see my private spendings in EUR.
So, I think for some people it make sense for some people not.
Fair enough, but what you describe now is a different scenario (and one that makes sense to me). I'm not sure the wallets would be the best or only solution to that though.
To neat: would it be possible to have 2 Neat cards in one name? So I can use one for private, and one for business use?
(regarding the one for business use, I would then like to have the monthly statement, as we discussed before)
Please not 2 cards. 2 Wallets. If you will separat spendings maybe it will make sense to have 2 wallets in the same currency also.
You can set one wallet as default. If you like to use the other wallet you can change it easily in the neat app.
I have so many real cards in my real wallet (ID, Drivers Licence, Entry Card to the office, Card for Public transport, Health Insurance Card, Fitness Studio Card, CURVE Credit Card and some other Bank Cards.
So no more card please, but Wallets.