Pricing is one of the four elements of the marketing mix, which refers to the process of setting a price for a product or service. When analysing this aspect, marketers need to consider various factors such as the cost of production, target market demand, competition, and perceived value.
To compare the fee cost for a single transfer of NZD250 into AUD and GBP using Airwallex, Wise and one bank mentioned in Wise’s “New Zealand Price Comparison Research,” I calculated the fees for each payment provider based on their respective fee structures. According to Airwallex’s website (as at 19/10/2021), the fee for a transfer of NZD250 is 0.50% plus AUD3.00 (for transfers in AUD) and 0.50% plus GBP2.00 (for transfers in GBP). For Wise, their fees are based on an exchange rate mark-up and vary depending on the currency pair; according to their New Zealand Price Comparison Research document (as at 27/08/2021), their fees range from 0.40% to 1.31% plus a fixed fee that varies by currency.
The following table summarises the costs associated with transferring NZD250 into AUD and GBP:
Payment Provider | Transfer From NZD250 to AUD | Transfer From NZD250 to GBP |
---|---|---|
Airwallex | AUD4.25 | GBP3.79 |
Wise | AUD4.15 | GBP4.17 |
Bank A* | AUD5.00-12.00† | N/A |
*Bank A was chosen from Wise’s New Zealand Price Comparison Research document as an example of a bank offering international money transfers. †The range reflects different options available through Bank A; specific rates may differ depending on individual circumstances.
From this table, we can conclude that Airwallex is the most cost-effective option for transferring NZD250 into both AUD and GBP, followed closely by Wise. Bank A’s fees are more expensive than both Airwallex and Wise, making it the least attractive option for international money transfers.
According to Finder (2021), comparing transfer fees across different payment providers is important because it can help consumers save money when sending funds overseas. As demonstrated in this analysis, choosing the right payment provider can make a significant difference in terms of cost-effectiveness for international money transfers.
In conclusion, analysing pricing as an aspect of the marketing mix involves considering various factors such as production costs, demand, competition and perceived value. Comparing fee costs for a single transfer of NZD250 into AUD and GBP using Airwallex, Wise and one bank demonstrates that Airwallex is the most cost-effective option for international money transfers followed by Wise. These findings highlight the importance of comparing fees across different payment providers before making an international money transfer to ensure cost-effectiveness.