Irish tourists travelling outside euro zone still prefer to carry cash, says Fexco

Irish tourists travelling outside the euro area have a strong preference for cash instead of digital payments over concerns about potential issues with their credit and debit cards when travelling abroad, Fexco has said.

Despite the notable increase in digital transactions since the pandemic, some 39 per cent of tourists in the Republic surveyed by Bounce Insights on behalf of the Kerry-based financial services company said they always exchange euros for cash when travelling outside the euro zone.

Fexco said the survey results tally with its own internal data, which shows the top currencies requested by its customers are US dollars and UK sterling, “followed very closely” by Australian dollars.

A further 32 per cent said they do so depending on their travel destination, with North America, South America and Africa emerging as the top three regions where tourists are most likely to exchange their domestic cash for foreign currency.

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Fexco said the main reasons cited by tourists for their preference include concerns about their cards not working while travelling abroad and the sense of security associated with carrying cash as well as the preference for cash over card or digital transactions in certain countries.

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“It is interesting to examine how consumer trends have changed in the post-Covid era,” said Simon Phillips, managing director at Fexco’s retail foreign exchange division.

“Despite a major rise in people accessing digital banking solutions and the decreasing use of cash in Ireland, the research demonstrates that people feel more at ease being able to access foreign currency when travelling abroad. This mirrors what we see in our own business with our customers still very keen to access cash beforehand.”

Foreign exchange services remain at the core of Fexco’s activities and the Killorglin-anchored group recently rolled out its ATM currency conversion service across Brazil.

However, Fexco has expanded into new areas in recent times, last year launching Pace, a platform that analyses carbon emissions in the aviation sector.

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In February, Fexco invested €10 million through Fexco Asset Finance in a sustainable loan initiative overseen by the Strategic Banking Corporation of Ireland to help businesses cut their energy costs and reduce carbon emissions.

The group posted a €1.2 million operating profit before exceptional items in 2021 after recording a net loss of nearly €48 million in 2020 due to a collapse in its foreign exchange business during the pandemic.