An IMT is an electronic transfer of funds via a network that is administered around the world by banks and specialist transfer services such as Moneygram, Western Union, Wise, OFX or XE.
Such transactions, also called telegraphic transfer (TT), wire transfer or SWIFT transfer, don’t actually involve the physical exchange of cash but are settled electronically. They are a secure and convenient method to move money from an individual account with one financial institution to another account with an institution in a different country.
According to the ACCC’s latest report, the total value of online IMTs from Australia has continued to grow each year, driven by a shift from in-store methods to online transfers.
The market has experienced significant transformation over the past five years, led by the growth in fintech businesses, which have significantly increased their market share by offering cheaper prices and, sometimes, better service than the big banks.
Still, IMT costs in Australia remain above the internationally agreed targets of 1% for transfer to advanced economies and up to 3% for remittances to emerging market or developing economies.
“Significant savings are available when consumers shop around, use online FX calculators to compare prices, and switch providers accordingly,” ACCC Chair, Gina Cass-Gottlieb, said.
