Another (big time) player in an already crowded market-place is going to put increasing pressure on OFX.....................................
Extracts from an article in today's online AFR:
"NAB Ventures has led a $US24 million ($31.6 million) funding round by foreign exchange payments group Veem, in a deal National Australia Bank hopes will help it grab a larger share of international money transfers made by small business.
"
"NAB is helping Veem establish banking facilities in Australia so it can expand its business here, where it will compete with the likes of OFX, which itself stole forex volume from the major banks by offering a cheaper and smoother service.
"
"This is a space where there is going to be a lot of disruption. There has been a lot on the retail side, but not so much in the business market, which is a lot larger."
Business customers looking to move money through the international bank network today might pay fees of around $40 to initiate a transfer, another $20 to send funds and then lose between 2 per cent and 4 per cent of the transferred amount on the foreign exchange spread. But Veem charges no fees and the forex spread is around half that of traditional players, between 1 per cent and 1.9 per cent, he said.
"
(20min delay)