'Borderless' debit MasterCard coming to Canada in 2019

A person inserts a debit card into an ATM machine in Pittsburgh, Saturday, Jan. 5, 2013. (AP / Gene J. Puskar, File)

TORONTO -- European financial technology company TransferWise is planning a Canadian launch next year for its borderless debit MasterCard, which allows users to hold and spend a balance in multiple currencies with lower fees than traditional banks.

TransferWise CEO and co-founder Kristo Kaarmann says the card, which was launched in the U.K. and the Eurozone two weeks ago, is useful for frequent business travellers, snowbirds and expats who spend lots of time outside of Canada but domestically as well.

Kaarmann says there would be no transaction fees for people making purchases on the borderless debit card in the currency a balance is held in.

If money held in the account must be converted into another currency before using the card, a conversion fee of between 0.6 per cent and one per cent applies, which Kaarmann says is less than the banks charge.

The U.K.-based fintech launched its borderless account in Canada in August last year, and Kaarmann says it is working to offer the accompanying debit MasterCard here in 2019.

Kaarmann spoke about its borderless debit card as TransferWise launches its batch payments function in Canada, that allows businesses to make up to 1,000 global payments at once in various currencies and pay lower foreign-currency conversion charges.