Wise Urges Parliament To Act On Misleading Foreign Transaction Fees That Cost Kiwis Hundreds Of Millions Each Year

Scoop

4 days ago

As the Financial Markets Conduct Amendment Bill 2025 moves through parliament, Wise highlights the full scale of the problem to MPs
Wellington: Wise is calling for more transparency and fairness on foreign transactions, as New Zealand consumers and businesses continue to be ripped off by hidden fees. In a submission to Parliament's Finance and Expenditure Select Committee on the Financial Markets Conduct Amendment Bill 2025, Wise explains how banks claim to provide 'fee-free' cross currency services while hiding true costs behind inflated transfer rates.
According to research by Edgar, Dunn & Company, commissioned by Wise, New Zealand consumers lost a total of NZD 667 million due to hidden FX payment fees in 2023, with this figure projected to increase to NZD 991 million by 2029.1
Tristan Dakin, Country Manager ANZ at Wise says: 'New Zealanders think they're getting a good deal because they see 'no fees' or 'zero commission'. But the real cost is hidden in the exchange rate mark-up, which can be vastly different to the rate you find on Google. By ensuring more transparency, parliament can put millions back into the wallets of consumers, while removing barriers for small businesses that want to expand internationally.'
Growing push to tackle hidden FX
While there are no current laws in place in New Zealand to address the issue, momentum for change is growing. Last year, the NZ Commerce Commission said there 'appears to be room to improve competition' in the space. And internationally, the G20 is acting on its roadmap for making international payments cheaper, faster, and more transparent.
Dakin adds: 'What the banks are doing right now is unfair, misleading, and is somehow perfectly legal. That needs to change, or they will continue to take an unfair share from Kiwi consumers and businesses. With the Financial Markets Conduct Amendment Bill 2025 and the growing international calls for reform, it's only a matter of time before governments all around the world take action on misleading FX fees.
New Zealand has an incredible opportunity to set an example for the rest of the world. These proposed reforms offer a practical, low-cost solution that would help Kiwis make better choices and save money, while driving competition and innovation in the space', says Dakin.
The Bill is currently before Parliament's Finance and Expenditure Committee which is due to report on 19 October. Wise is calling for the following changes:
Require banks and financial service providers to show the full cost of a transfer upfront, including both fixed fees and exchange rate markups.
Ban advertising that claims transfers are 'fee-free' when a fee is hidden in the exchange rate.
Standardise how pricing is shown, so people can compare providers easily.
Define key terms like 'mid-market exchange rate' to ensure consistency.
1 The 2023 hidden fee data from Edgar, Dunn, and Company (EDC) were calculated based on the exchange rate margin offered by the largest banks in New Zealand when their customers move money from the country. Fee data from 2024 to 2029 are projected based on expected GDP growth of New Zealand.
About Wise:
Wise is a global technology company, building the best way to move and manage the world's money. Wise has more than 400,000 active New Zealand customers. With Wise Account and Wise Business, people and businesses can hold 40 currencies, move money between countries and spend money abroad. Large companies and banks use Wise technology too; an entirely new network for the world's money. One of the world's fastest growing, profitable tech companies, Wise launched in 2011 and is listed on the London Stock Exchange under the ticker, WISE. In fiscal year 2025, Wise supported around 14.8 million personal customers and 700,000 business customers, processing approximately £145.2 billion in cross-border transactions, and saving customers an estimated £2 billion.