We compare how much businesses in Singapore can save by paying their expenses with the YouBiz card


This article was written in collaboration with YouTrip. All opinions expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not responsible for any financial loss that may arise from any transaction and readers are encouraged to do their own due diligence. You can view our full editorial policy.

There are generally two things a business can do to make higher profits. One way is to increase their income. The other way is to reduce their cost.

For a company, cost reduction is often associated with a negative connotation that it will affect employees or their work. These cost-cutting measures could include downsizing exercises, lower variable bonuses, hiring freezes, smaller marketing budgets or the reduction of certain HR benefits. This can affect team morale and lead to greater attrition and subsequently lower revenue and profits, which defeats the purpose of cost reduction measures in the first place.

However, what business owners may not realize is that it is still possible to reduce the costs of their business without having to compromise on everything they currently spend. By simply paying more cost-effectively, businesses can reduce costs and increase profits.

Introducing YouBiz, the business cousin of YouTrip

Many of us would have heard of and used YouTrip, Singapore’s first multi-currency wallet that also includes a prepaid MasterCard. Launched in 2018, YouTrip allows us as consumers to pay in over 150 currencies when shopping online or traveling abroad without incurring currency conversion fees.

With YouTrip, we can also exchange and store 10 different currencies in its multi-currency wallet, allowing online shoppers, vacationers and business travelers to benefit from competitive on-demand rates. You can find out more in our review of YouTrip and how to apply for a card.

While YouTrip is aimed at consumers, YouBiz was introduced to meet the needs of business owners.

The general principle of YouBiz is similar to that of YouTrip, namely to help customers save on their foreign currency conversion costs. This is particularly important for many Singaporean businesses as they are likely to incur foreign currency expenses even when operating solely in Singapore.

For example, many companies, including DollarsAndSense, will have subscriptions priced in USD. This includes for example our Microsoft, Gmail, Mailchimp and Adobe subscriptions. Normally, subscriptions to these services are charged in USD but charged to our Singapore credit card in Singapore Dollars (SGD).

One of the monthly subscriptions we have at DollarsAndSense costs us $99. However, what we end up paying each month for the subscription varies depending on the spot exchange rate at the billing point. On June 28, 2022, it was SGD 141.81.

However, six months ago, on December 28, 2021, the same subscription cost us exactly 139.32 SGD, which is 2.49 SGD less than today due to a more favorable USD/SGD rate. era.

For YouBiz, the benefit that businesses can get is that when we see a favorable exchange rate that we like, we can convert and lock in the rates we want today in our multi-currency YouBiz account, knowing that we can use them. for the future. It also turns what would have been a variable cost into a fixed cost.

With YouBiz we get a free multi-currency account which allows us to hold 9 different currencies including SGD and USD in our account. We can also receive funds transfers to our YouBiz account in 8 different major currencies and spend in over 150 different currencies with cards linked to an SGD account.

Take advantage of higher rates with YouBiz

While it’s great to be able to secure favorable rates in advance, we also want to make sure we get the best possible conversion rates without any markup. This is why many consumers will spend time comparing and visiting different money changers to find the best possible exchange rates.

Here is some good news. Similar to YouTrip, YouBiz does not charge any currency conversion fees. This is different from traditional money changers and financial institutions, where currency conversion fees and currency spread are how they make money.

For example, on August 5, when we took the screenshot, we see that the spot rate for USD/SGD is 1.3759. This means that for every 100 USD we have to change 137.59 SGD.

The USD/SGD rate offered by YouBiz that day was similar – 1.3782.

In other words, YouBiz offers businesses the ability to trade at the spot rate (some call it the “Google rate”), without any cost or currency conversion spread.

We used the conversion fee we paid on June 28, 2022 to determine the additional amount we typically pay for foreign currency conversion with a regular credit card.

The exchange rate above is equivalent to 1.43.

However, if we were to look at the spot rate on June 28, 2022, we can see that the rate that day was around 1.39. This means that the exchange rate we got when paying with our usual bank credit card was around 2.8% higher than the actual spot rate that day.

2.8% may not seem like much if we’re only paying $99 per month, but for many businesses the various subscriptions and services we pay for (Microsoft, Gmail, Adobe, Mailchimp, Server Cost, Digital Marketing Spend) can easily be of about $5,000 or more each month.

So if we pay on average about 2.8% more than we need, that’s an extra cost of about SGD 1,680 per year that we didn’t need to pay.

Enjoy unlimited 1% cashback every time you pay with your YouBiz card

In addition to enjoying a favorable exchange rate at all times at no additional cost, YouBiz also rewards companies when they pay with the YouBiz card. This comes in the form of 1% cashback with no cashback caps, minimum spend requirements, or exchange fees.

Taking the example of a business that spends around $5,000 per month, this equates to a cashback of $50 per month or $600 per year. When you add this amount to what we would also have saved in foreign currency conversion fees, it equals SGD2,514 per year (assuming a USD/SGD conversion rate of 1.39).

All YouBiz users can issue unlimited virtual/physical cards to their employees with customizable spending limits at no additional cost. The person applying would be the admin, and that person can see and manage everything. You can also give custom access with variable permissions and payment access to other employees, which can be controlled by the administrator.

Spending on all cards will automatically earn cash back which will be credited to the business.

Pay your employees abroad more efficiently

As mentioned above, YouBiz allows us to lock in and take advantage of favorable exchange rates when we convert our SGDs into the foreign currencies we need.

For Singapore companies with overseas business operations, this is valuable. Our overseas operations generally represent a variable cost component for us as a Singapore-based company, as the exchange rate will ultimately determine the cost of our overseas operations.

With YouBiz, we can lock in rates when they are favorable to us. For example, if we pay our employees in USD, we can convert our SGD to USD today if we like the exchange rates and keep the funds in USD in our YouBiz account.

From a cash management perspective, this is good because it gives us better predictability of the cost of our overseas operations, rather than having to worry and accept the spot rate when we have to pay our employees overseas.

When it’s time to pay our employees, we can send funds overseas from our YouBiz account and pay out using the Send money tongue.

Hassle-free with no annual fee

The main value proposition offered by YouBiz is that it can help companies significantly reduce their foreign currency expenses, whether they are paying foreign currency denominated expenses or the salaries of our employees abroad. On top of that, the 1% cashback is another perk that can help businesses reduce their SGD and foreign currency spend, without having to compromise on what they spend.

YouBiz is completely free, with no annual fees or minimum cash balance required. There is also no charge if you need more YouBiz cards for your growing team of employees. Overseas staff you entrust with expense management can also receive a YouBiz card while you or your finance manager can easily track the different types of expenses incurred from Singapore.

Read also : YouTrip vs. Regular Credit Card: How Much Can You Save When Spending Abroad?


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