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Here’s why TNG eWallet imposes 1% overseas conversion fee

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Here’s why TNG eWallet imposes 1% overseas conversion fee

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Touch ‘n Go eWallet will soon impose an extra 1% overseas transaction conversion fee if you use the eWallet for QR payments overseas. The 1% charge will be included starting 25th April 2024.

According to TNG eWallet, this 1% overseas transaction fee is not a separate charge and will be included as a markup on the daily exchange rate of your travel destination. This means your crossborder transaction will use the displayed currency exchange rate with no additional fees.

Take note that the new 1% conversion fee doesn’t affect local QR payments including DuitNow QR codes. The transaction conversion fee only applies to foreign QR payments such as using Alipay+ for international markets including Mainland China, Japan, Thailand and Singapore.

For TNG Visa transactions, there are no further changes as Touch ‘n Go eWallet has been charging a 1% transaction fee for card payments since the beginning. Despite the 1% conversion fee, TNG eWallet is confident that TNG eWallet users will continue to enjoy one of the best competitive overseas transaction rates in the market, which is lower than your typical credit cards.

TNG Digital CEO Alan Ni shared that the conversion fee or FX markup is a market practice for all overseas transactions. He said all banks and eWallets are charging it for a simple reason: They can’t impose MDR (Merchant Discount Rate) on foreign merchants, therefore payment providers including TNG eWallet would markup as a primary income.

Alan also said that TNG eWallet has been waiving the overseas transaction fee from the beginning to promote cross-border payments. With a high volume growth, it is not commercially viable to subsidise the overseas transaction fee forever. He also shared that TNG eWallet is more transparent as users can view the effective exchange rate immediately while users of other payment methods may have to wait until they receive their monthly statements.

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TNG eWallet is currently accepted in over 40 countries worldwide via the Alipay+ network. Mainland China is its biggest crossborder market which has over 10 million merchants. This is followed by Japan which currently has over 2 million merchant touchpoints including PayPay now merchants.

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