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Average UK business going to Europe will save around £66 per trip as Sterling rises in value against the Euro

New analysis from travel money business Centtrip reveals that Sterling is now worth around 15% more against the Euro than it was this time two years ago, and it  estimates this could save British businesses going to the EU around £66 per trip on the value of their spending money.

Analysis by Centtrip, which has the first prepaid Mastercard offering 14 currencies on a single card at ‘spread free’ exchange rates, reveals that British businesses made around 4.67 million trips to the EU in 2013, spending a total of £2 billion whilst there.  It says if the valuation of Sterling against the Euro remains the same this year when compared to two years ago, they could on average spend £65.99 less in 2015 and have more or less the same spending power they did in 2013.  

It estimates that two years ago businesses spent on average around £428.78 whilst in the EU on business, and to have the same level of spending money today they only need to spend around £362.79.  

However, Centtrip estimates that the average FX spread when we use our credit, debit and prepaid currency cards abroad, or when we buy foreign currency is over 2%. Centtrip has the first prepaid Mastercard offering 14 currencies on a single card at ‘spread free’ exchange rates.  This means customers receive the market rate, or the price Centtrip pays for the currency.   

Brian Jamieson, Co-Founder and Managing Director, Centtrip said: “As Sterling continues to grow against the Euro, the power of our spending money whilst on business in the EU increases.  Sterling has recently hit new seven-year highs versus the Euro, and many of our business customers are locking in current attractive rates and buying Euros to use today or at a later date.”  

Businesses using Centtrip’s new card can manage their accounts via a smartphone app or online through a multi-currency travel account.  With no limit to the account balance, the Centtrip Corporate card also allows individual daily card balances of up £50,000, significantly higher when compared to £5,000 or £6,000 for most prepaid currency cards.  

Customers pay one fixed annual fee of £10 and 0.5% of the value of funds loaded to their account.  Thereafter they can buy foreign currency from Centtrip at authentic 0% rates from the live market, as much as they need and as often as they want.  

New research from financial services research company MoneyComms, which was commissioned by Centtrip, reveals that for the Euro, the average foreign exchange spread on credit cards and debit cards is 2.4% and 2.42% respectively.  For prepaid currency cards, the corresponding figure is 2.59%.  

Looking at six different scenarios for spending between £1,500 and £150,000 in Euros and using ATMs abroad, MoneyComms found for the lowest value example the savings from using Centtrip when compared against the average cost of using UK debit, credit or FX cards was £22.11, £29.97 and £19.6 respectively.  The corresponding savings on its £50,000 Euro scenario were £1,011.9, £1,085.6 and £975.95, and for the £150,000 case study, they were £4,007.88, £4,461.44 and £4,154.15.  

The research also applied the same scenarios to US Dollar transactions and similar savings from using Centtrip were identified.  

In addition to spread free exchange rates, no charge for point-of-sale transactions in the UK or abroad and competitive international ATM fees, Centtrip’s card also offers the heritage and confidence of the MasterCard brand.  This means it’s accepted at over 34 million locations and 2.1 million ATMs worldwide.

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