Stop overpaying for money transfers to Australia, Japan, APAC

Your business sends money to suppliers in Sydney, partners in Tokyo, and teams across Southeast Asia. Yet every transfer feels like watching money evaporate – exchange rate markups eating into margins, fees stacking up without explanation, and funds taking days to arrive when deals need to close now.

The numbers paint a stark picture. Australia's Big Four banks dominate over 90% of the market, and their exchange rate markups tell the real story ¹. Commonwealth Bank charges markups of 4.32% for AUDUSD, 4.43% for AUDEUR, and 4.54% for AUDGBP ¹. Transfer $20,000 through Commonwealth Bank and you'll lose $864 just on exchange rate markup alone ¹.

These hidden costs multiply across the region. In 2022, merchants globally paid approximately $138 billion in processing fees ². Meanwhile, 47% of global payments revenues – a staggering $1 trillion – is generated in Asia Pacific, with the fastest annual growth rate of 25% when excluding China ².

The real cost of traditional APAC transfers

Traditional banks remain the default choice for many businesses, with 76% of Australian businesses relying on the 'big four' banks for international transfers ¹. Yet 62% of Australian businesses remain blind to hidden fees and mark-ups built into their transfers ¹.

Let's break down what you're actually paying:

Exchange rate markups: the silent profit center

Australian banks showcase their markup strategies clearly. ANZ Bank charges exchange rate markups of 4.06% for AUDUSD, 4.11% for AUDEUR, and 3.84% for AUDGBP ¹. Westpac follows closely with markups of 3.95% for AUDUSD, 3.85% for AUDEUR, and 3.84% for AUDGBP ¹.

Even NAB, offering the best value among Australia's major banks, still charges markups of 2.57% for AUDUSD, 2.57% for AUDEUR, and 2.56% for AUDGBP ¹. A $20,000 transfer through NAB would still incur a $514 loss due to exchange rate markup ¹.

Transfer fees: the visible tip of the iceberg

Beyond exchange rate markups, banks layer on transfer fees. ANZ charges $18 online or $32 in-branch for fees sent in AUD, plus $9 for foreign currency transfers under $10,000 ¹. NAB charges a flat $30 for AUD transfers whether online or in-branch ¹.

These fees add up quickly for businesses making regular transfers. Send money weekly to suppliers in Japan, and you're looking at over $1,500 annually in transfer fees alone – before considering exchange rate losses.

Why APAC payments demand special attention

The Asia-Pacific region presents unique challenges and opportunities. By the end of the decade, analysts predict the Asia-Pacific region's digital economy could reach US$1 trillion, with digital payments at the heart of it ³. The region's payment landscape evolves rapidly, with 70% of e-commerce transactions processed by digital wallets in Asia-Pacific in 2023 ².

Speed matters more than ever

Speed ranks as the number one priority for 65% of respondents when choosing a payment method for cross-border transfers ⁴. Traditional bank transfers to Japan can take 3-5 business days. Meanwhile, modern payment infrastructure enables funds to be received in as little as one business day ⁵.

Currency volatility amplifies costs

Foreign currency credit in dollar, euro and yen grew respectively by 5%, 10% and 6% year-on-year at the end of the first quarter of 2025 ⁶. This volatility means delayed transfers don't just cost time – they expose businesses to unfavorable rate movements.

Modern solutions cutting transfer costs

Forward-thinking companies are abandoning traditional banking rails. McLaren Racing modernized their cross-border payments and saved $7,000+ CAD on FX fees ⁷. The implementation took just 14 days, and now saves them 0.5 days per month on international payment runs ⁷.

Direct network advantages

Modern payment platforms bypass traditional correspondent banking networks. Payments made using local networks eliminate transaction fees and deliver funds faster and in full ⁸. This approach transforms the economics of APAC transfers.

Consider the difference: while traditional banks charge markups of 2.57% to 4.54% ¹, platforms like Airwallex implement foreign exchange markups of just 0.3-0.6% above the interbank rate ⁹.

Technology driving transparency

The shift toward transparency accelerates across APAC. Open banking can surface clear, real-time data on fees, exchange rates, and transaction status, reducing hidden costs and boosting consumer confidence ⁴. Meanwhile, 44% of respondents express frustration with poor exchange rates and 35% with high or hidden fees ⁴.

Building your APAC payment strategy

Optimizing APAC payments requires understanding both regional dynamics and available tools. Global cross-border bank credit expanded by $1.5 trillion in the first quarter of 2025, reaching a record $34.7 trillion ⁶. Your business needs systems that capture value from this growth without bleeding money on every transaction.

Evaluate your current costs

Start by calculating your true transfer costs. Include:

• Exchange rate markups (often 2-4% with traditional banks)

• Transfer fees (both sender and receiver side)

• Processing delays and their business impact

• Administrative time managing payments

An online money transfer of $20,000 can cost less than $100 with modern platforms ¹, compared to $864+ in hidden costs through traditional banks.

Choose the right payment infrastructure

Look for platforms offering:

• Transparent pricing: Market-leading FX rates on every transaction with zero hidden fees⁸

• Speed: Funds received in as little as one business day⁵

• Coverage: Support for 150+ countries and regions, in 60+ currencies⁸

• Integration: Native connections with accounting platforms and e-commerce systems

Regional considerations for APAC transfers

The technology reshaping APAC payments

Artificial intelligence now plays a bigger role in payment security, detecting suspicious behavior in real time. Visa recently rolled out an AI system that helps stop over half of the fraud that traditional systems miss ³. This enhanced security enables faster processing without compromising safety.

API-driven automation

Modern platforms provide enterprise-grade REST APIs with extensive documentation, enabling seamless integration with existing systems ⁹. This automation eliminates manual processes that slow down payments and introduce errors.

Real-time tracking and reporting

Comprehensive analytics dashboards offer detailed insights into transaction patterns, currency exposure, and spending trends ⁹. Real-time transaction monitoring and instant payment approvals transform how businesses manage cash flow across borders.

Success stories: companies cutting APAC transfer costs

Beyond McLaren Racing's success, companies across industries are transforming their payment operations. Airwallex grew its customer base by 50% in 2024, now serving 150,000 businesses worldwide ¹⁰. In March 2025, the platform achieved US$720M in annualised revenue, up 90% year-over-year, and exceeded US$130 billion in global annualised payments volume ¹⁰.

These results reflect a broader shift. The global digital payment market is expected to reach $32.07 trillion by 2033, with a compound annual growth rate of 13.5% from 2024 to 2033 ¹¹.

Implementation roadmap

Transforming your APAC payment operations doesn't require months of planning. McLaren Racing's 14-day implementation proves that rapid deployment is possible ⁷.

Week 1-2: Assessment and setup

• Analyze current transfer volumes and costs

• Identify key payment corridors (Australia, Japan, Singapore, etc.)

• Open multi-currency accounts with modern platforms

• Configure approval workflows and controls

Week 3-4: Integration and testing

• Connect accounting systems via API

• Test transfers with small amounts

• Train finance team on new processes

• Document procedures and compliance requirements

Month 2: Optimization

• Monitor exchange rates and optimize timing

• Automate recurring payments

• Implement reporting dashboards

• Calculate and report cost savings

The future of APAC payments

The payments landscape continues evolving rapidly. Singapore and India linked their systems in 2024 to allow users to send money across borders in real time ³. A project called 'Nexus,' led by the Bank for International Settlements, is building a global network of real-time payments across Asia and beyond ³.

Stablecoins enable near-instant global transfers, helping meet the G20's target of 75% of cross-border remittances arriving within one hour and the remainder within one business day by the end of 2027 ⁴. These innovations will further reduce costs and accelerate transfers.

Take action on APAC transfer costs

Every day you delay switching from traditional banks costs real money. A business sending $100,000 monthly to APAC could save over $40,000 annually just on exchange rate markups by switching to modern payment infrastructure.

The math is clear: traditional banks charge 2.57-4.54% in exchange rate markups ¹, while modern platforms offer rates at 0.3-0.6% above interbank ⁹. Add faster processing, automated workflows, and transparent pricing, and the decision becomes obvious.

Start by auditing your last three months of APAC transfers. Calculate the total cost including fees and exchange rate losses. Then compare that to what modern payment platforms offer. The savings will surprise you – and fund your next expansion into APAC markets.

Your competitors are already making the switch. Companies using modern payment infrastructure report saving thousands in fees while cutting payment processing time by days. Don't let outdated payment systems drain your profits when better solutions exist today.

The APAC region represents massive growth potential, but only if you can move money efficiently. Stop accepting hidden fees and poor exchange rates as the cost of doing business. Modern payment technology delivers transparency, speed, and savings – everything you need to compete effectively across Australia, Japan, and the broader Asia-Pacific region.

FAQ

How much do Australia's Big Four banks charge for international transfers?

Australia's Big Four banks, which dominate over 90% of the market, charge significant fees and exchange rate markups. For example, ANZ Bank charges $18-$32 in fees plus exchange rate markups of 4.06% for AUD/USD, 4.11% for AUD/EUR, and 3.84% for AUD/GBP. These hidden costs can add up to thousands in additional expenses for businesses making regular transfers.

What are the main hidden costs in traditional APAC money transfers?

Traditional APAC money transfers include several hidden costs: exchange rate markups (typically 3-5% above mid-market rates), fixed transfer fees ($18-$50 per transaction), correspondent banking fees, and intermediary bank charges. These costs compound quickly for businesses making frequent transfers to suppliers in Sydney, partners in Tokyo, or teams across Southeast Asia.

How can businesses save up to 90% on cross-border payments to APAC?

Modern payment infrastructure providers like Airwallex offer significant savings through real-time foreign exchange rates, multi-currency accounts, and reduced fees. By using platforms that support over 50 currencies with transparent pricing, businesses can eliminate most hidden fees and exchange rate markups that traditional banks impose on APAC transfers.

Why do traditional bank transfers to Japan and Australia take so long?

Traditional bank transfers use correspondent banking networks with multiple intermediaries, causing delays of 3-5 business days. Each intermediary bank processes the transaction sequentially, adding time and potential fees. Modern payment platforms bypass these networks using direct relationships and real-time processing, enabling same-day or next-day transfers to major APAC markets.

How do travel companies specifically benefit from optimized cross-border payments?

Travel companies operating across APAC face unique challenges with frequent international payments to hotels, suppliers, and partners. By switching to modern payment infrastructure, travel companies can save significantly on cross-border payments through reduced fees, better exchange rates, and faster settlement times, which is crucial for managing cash flow in the dynamic travel industry.

What should finance teams look for when expanding globally to APAC markets?

Finance teams expanding to APAC should prioritize payment solutions that offer multi-currency accounts, real-time exchange rates, transparent fee structures, and regulatory compliance across different markets. Key signs that your finance team needs better global payment infrastructure include high transfer costs, delayed payments affecting supplier relationships, and difficulty tracking international transactions across multiple banking relationships.

Citations

1. https://moneytransfer.com.au/banks/

2. https://www.merchantsavvy.co.uk/digital-payment-market/

3. https://www.atmia.com/news/asia-pacifics-digital-payments-revolution-whats-coming-in-2025/23005/

4. https://www.thunes.com/news/top-growth-drivers-in-consumer-cross-border-payments/

5. https://www.airwallex.com/ca/business-account/transfers/send-money-to-japan

6. https://www.bis.org/statistics/rppb2507.htm

7. https://www.airwallex.com/ca/case-studies/mclaren-racing

8. https://www.airwallex.com/ca/business-account/transfers/send-money-to-australia

9. https://www.trykeep.com/newsroom/airwallex-vs-transferwise

10. https://www.finsmes.com/2025/05/airwallex-raises-us300m-at-a-us6-2-billion-valuation.html

11. https://www.globenewswire.com/news-release/2025/05/28/3089198/0/en/Digital-Payment-Industry-Report-2025-Market-to-Hit-32-07-Trillion-by-2033-Government-Initiatives-Propel-Global-Shift-to-Cashless-Transactions.html