DON’T WASTE MONEY PASSING THE BUCK THIS CHRISTMAS

  • One-in-five will send a package overseas during December whilst around half of all money spent is on transport
  • Millions also spent on ‘delivering’ gifts of money thanks to the high fees charged by some money transfer services

Thousands of UK adults will send packages abroad this Christmas according to research from global money transfer firm, Xpress Money[1].  The average item makes up less than half the cost of the fully packaged and delivered parcel.  With an estimated one-in-five adults sending gifts overseas this month, a huge amount of money is spent on transportation and packaging.

Millions of pounds will also be sent to families and loved ones via money transfer services during the festive period.  UK banks typically charge between 5-8% in fees and other online providers are variable.  Some of these fees are less than transparent and are passed on to the recipient.

The UK is the fourth largest international money transfer market, our outgoing funds worth an estimated £15billion.  Xpress Money has been campaigning for industry regulation to reduce the vast sums of money some companies are able to charge in fees.

Sudhesh Giriyan, Chief Operating Officer at Xpress Money said, “It’s astonishing how much money is evaporated by transportation costs at Christmas.  Whether you’re arranging for a gift to be delivered locally or sending something direct from the UK to loved ones abroad, it’s expensive.  Unfortunately, the same can be said for sending gifts of money with the average transfer costing 7.6% in ‘delivery’ costs.”

He added: “There are a huge number of providers offering money transfer services but it’s important you look for companies that are FCA authorised.  This means they keep your money separate from their own accounts which is important should the company have issues.  The global industry average of sending remittances is 7.6%, while the global average remittance costs of Xpress Money stands at 2.09%.”

Some typical costs associated with the delivery of flowers or parcels overseas:

Gift Delivery method USA China India Germany Poland
Interflora costs (Ordered online and made up at a local interflora florists to cut overheads) £9.99 International delivery charge
Parcelforce
(2kg example)
*assumes not Worldwide account holder
£34.90+ VAT
“Delivery Aim 5-9 days”
£64.70 incl. Vat (4+days) £80.10 incl. VAT (5+days) £18.45+ VAT
“Delivery Aim 3-5 days”
£30.45+ VAT “Delivery Aim 5-7 days”
Royal Mail International Standard (2kg limit) *customs form needed (CN22 if value under £270; CN23 if value over £270 £19.75
incl. VAT (5-7 working days)
£19.75
incl. VAT (5-7 working days)
£19.75
incl. VAT (5-7 working days)
£13.46
incl. VAT (1-3 working days)
£13.46
incl. VAT (1-3 working days)

*costs correct as of 14th December 2015 –  some options now unavailable pre-Christmas

According to the ONS, the number of visits abroad to see friends or family grew 7.8% in 2014 on the previous year whilst visits to the UK for the same reason, grew by 4.8%[2].  Meanwhile, emigration remains steady since 2009 with an estimated 323,000 people emigrating during last year[3].  Many of these emigrants are British people leaving the country for a life elsewhere.

Established in 1999 in the United Kingdom, Xpress Money is one of the fastest growing money transfer brands in the world.  The business offers money transfer services through 170,000 locations across 150 countries worldwide.

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