Frequent traveller Mindy Kon goes overseas two to three times a year. But gone are the days when she would queue at money changers before her trips, or stuff her wallet with wads of foreign currencies.
In its place is her multi-currency mobile wallet, which the 31-year-old uses to swipe and tap her way through her trips.
“It’s more convenient, and I get much better exchange rates,” says Ms Kon, who works as a private tutor. “I don’t have to fumble with cash or worry about ending up with leftover coins I can’t exchange back.”
Her approach is a norm for the majority of travellers in the region.
A biennial study by Visa, released last year, revealed that 97 per cent of travellers in Asia-Pacific opted to go cashless when travelling.
Conducted from April to June 2023, the Visa Global Travel Intentions Study polled 15,467 respondents across 13 Asia-Pacific countries, including Singapore, Malaysia, Japan, and Australia.
Why is cashless travel now king?
Besides convenience, cashless payment methods offer better, and more transparent, exchange rates compared with money changers, says Ms Choo Wan Sim, head of Personal Financial Services, TMRW Digital, UOB.
Going cashless is also safer than carrying physical cash, Ms Choo says, explaining that travellers also don’t have to worry about losing the physical money on the trip.
Should they lose their debit or credit cards, they can contact their banks to block subsequent transactions.
For UOB customers, says Ms Choo, they can instantly block or set a limit on their credit and debit cards on the UOB TMRW banking app. The service is available 24/7. Customers will also receive alerts for unauthorised transactions to their cards, she adds.
Potential fraud or unauthorised access is a key concern when using digital payment methods overseas, UOB’s Ms Choo says.
She advises travellers to safeguard their mobile devices and payment methods by activating biometric login, such as facial recognition. This measure is particularly important for mobile wallets and multi-currency cards, which are often linked directly to users’ bank accounts.
By adding this extra layer of protection, travellers can ensure their accounts remain secure even if their phones are lost or stolen.
Ms Choo also notes that while cashless travel is on the rise, its adoption isn’t universal. “It’s wise to still carry some cash,” she advises.
For Ms Kon, this was evident during her June trip to Thailand, where cash is typically the sole payment option at roadside stalls and mom-and-pop shops. The acceptance of mobile payment methods, such as Apple Pay and Google Pay, remains limited.
“Once, I was at a convenience store (in Thailand) without my cards and cash. It didn’t support Apple Pay, leaving me unable to pay.” To avoid such situations, she intends to always carry a small amount of cash as a backup.
When using your credit or debit cards overseas, always opt to pay in the local currency, advises Ms Choo.
This avoids dynamic currency conversion (DCC) charges that apply when you pay in your home currency.
Ms Choo also suggests converting currencies in advance when rates are favourable, particularly if you use a multi-currency wallet or card.
“(This way), your overseas spending and ATM withdrawals will be debited directly from your respective foreign currency account (so you can avoid paying conversion fees),” she explains.
More than half (57 per cent) of Singapore travellers surveyed in UOB’s Asean Consumer Sentiment Study 2024 say they prefer paying with credit or debit cards when overseas.
The regional study was conducted online in June 2024, polling 5,000 participants aged 18 to 65 from Indonesia, Malaysia, Singapore, Thailand and Vietnam.
Credit and debit cards are a favourite due to their added perks, says Ms Choo. Some cards allow users to transact directly with zero foreign transaction fees or earn attractive rewards like miles and cashback. For example, the UOB PRVI miles card offers up to 3 miles on overseas spending.
Besides competitive exchange rates and zero currency conversion fees, multi-currency cards and digital wallets give users the flexibility to convert, hold and manage foreign currencies.
Such features make multi-currency cards and digital wallets a preferred choice for travellers – such as Ms Kon – who seek convenience and cost savings.
When the Japanese currency hit a record low of about 120 yen against the Singapore dollar in July, Ms Kon topped up her multi-currency digital wallet and exchanged about $250 worth of yen.
“My husband and I were planning a trip to Japan at the end of the year, so I took advantage of the favourable rate (to exchange some money ahead of the trip).”
Ms Kon also appreciates the ability to top up her digital wallet via a linked debit card as needed during her trips. “I don’t have to stress about estimating how much foreign currency I’ll need before I go. Using the mobile app, I can simply convert currencies on the spot.”
UOB’s Ms Choo notes a growing preference for multi-currency cards and digital wallets. Between Jan and Oct 2024, more than $1 billion worth of conversion were made on the UOB FX+ debit card via the UOB TMRW app. This is almost three times more than the same period last year, she says.
The UOB FX+ debit card allows travellers to easily convert 11 popular currencies – including the US dollar, Japanese yen and euro – “at rates as good as what they see online”, Ms Choo says. From now till Dec 31, they can also enjoy 3.25 per cent cashback on all other foreign currency spent on the UOB FX+ debit card, with no cashback cap.
Users of the UOB FX+ debit card can also set alerts on the UOB TMRW app for their preferred rates, says Ms Choo, so they can be notified when the indicated rate becomes available. “Such features give consumers unparalleled convenience and control, (enabling users to) easily track conversion rates and make immediate fund conversions.”
For Singaporeans travelling to nearby destinations such as Malaysia, Thailand, and Indonesia, paying for products and services has become more seamless with the launch of cross-border QR code payment in the last two years.
Travellers can now use their banking apps to scan QR codes at participating merchants to pay for products and services.
UOB saw a surge in cross-border QR payments as these payment methods gained traction across the region, Ms Choo says.
The bank’s cross-border QR transaction volume in the third quarter of 2024, ahead of the year-end travel season, grew by three times compared with the fourth quarter of last year. This is expected to rise further this month, Ms Choo adds.
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Please note that the views expressed in this article do not represent financial, investment or legal advice.
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MDDI (P) 048/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2025 SPH Media Limited. All rights reserved.
