Digital Transactions Authoritative, insightful and timely information for payments professionals
Corporations and wealthy consumers have a new option when they need to move funds internationally. HiFX, a unit of Euronet Worldwide Inc., has begun offering its services to U.S. and Canadian clients.
Acquired by Leawood, Kan.-based Euronet in 2014, U.K.-based HiFX enables users to transfer funds internationally in 28 currencies, and positions itself as an alternative to using a bank for this service.
There’s a huge opportunity for the service in the United States and Canada, Jeff Matheson, HiFX managing director for North America, tells Digital Transactions News. “International business continues to churn,” Matheson says. “It’s a multibillion-dollar opportunity.”
HiFX offers personal and corporate accounts. While the personal accounts are geared to high-net-worth consumers, corporate accounts are available for a business of any size that has international exposure, Matheson says.
Marketing to each constituency will differ. HiFX, which has its U.S. offices in the Los Angeles area, will use digital marketing to reach consumers, and a direct sales force for businesses, Matheson says.
HiFX hopes to entice customers with lower fees than banks charge, along with customer service, Matheson says. “We’re always going to be extremely competitive.” On its Web site, HiFX says there are no fees on transactions of $5,000 or more. It assesses $5 for lower transfer amounts.
HiFX will make its money based on the spread between the rate at which it buys a currency and the rate it sells for, Matheson says. “We’re able to make higher-volume currency purchases in the market which results in better pricing for our clients,” he says. HiFX says it processed $24 billion in money transfers in 2013 and 2014.
Though HiFX and Ria are part of the same company and offer similar services, Matheson says neither will poach the other’s customers. Ria serves a broader mix of consumers, most notably through a deal with Wal-Mart Stores Inc. that has Ria acting as the channel for money transfers to and from its more than 4,000 U.S. stores. Ria caps its money transfers at $2,999.99 per transfer per day, with a 30-day maximum of $7,999. HiFX allows much larger transactions.
Euronet bought HiFX, which was founded in 1998, for $241 million in 2014.
