The report analyses the hidden costs of international money transfers for UK SMEs (Small and Medium-sized Enterprises), highlighting the lack of transparency, higher costs and the lack of functionality provided by solutions at the time.

Hidden Costs of International Payments

• UK SMEs incur approximately £4 billion annually in hidden fees from banks for international money transfers, primarily due to currency spreads.

• Banks charge between 3% and 6% for these transactions, with a typical £50,000 transfer costing an average of 2.43% (£1,215), largely from hidden spreads.

• Over 80% of SMEs are unaware of the true costs associated with foreign exchange through their banks, and 43% would find international trading more appealing with clearer fee structures.

Lack of Transparency and Utility

• The opaque way that banks charge for foreign exchange makes it difficult for SMEs to compare costs and choose the best provider.

• Banks provide limited utility, complicating the integration of international payment services into existing financial workflows for SMEs.

Alternative Solutions

• Independent providers like Money Mover offer transparent pricing, charging a single fee based on the transaction size, allowing customers to see the final amount before payment.

• Money Mover’s web application is tailored for SMEs, streamlining the payment process and reducing errors, thus providing a more efficient alternative to traditional banking services.

Important Note

This report has been included for reference purposes and is cited by a recent blog discussing the changes and developments in the banking and fintech payments sector between 2015 and 2025. It does not represent the current status quo.