Bills, bills, bills: Revenue has grown, despite online sales causing depreciation costs to rise

Demand for foreign currency exchange services has grown strongly over the past five years as world economies have become more interconnected. The rising volume of people travelling in and out of Australia has driven growth in the volume of foreign currency exchange transactions. Strong growth in the number of international students studying in Australia has also contributed to rising industry demand over the period. As a result, industry revenue is expected to grow at an annualised 2.1% over the five years through 2019-20, to reach $1.7 billion. This includes anticipated growth of 2.5% in the current year, as an increasing number of overseas visitors and international students enter more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Increasing numbers of overseas tourists and students have driven revenue growth
  • Kiosks and banks have enhanced their online offerings to become more competitive
  • Growing volumes of online transactions are expected to cause declines in profitability
  • Industry Report - Industry Investment Chapter

    The Foreign Currency Exchange Services industry exhibits moderate capital intensity. For every dollar spent on wages, the industry spends an estimated $0.19 on capital investment. A moderate level of capital is the characteristic of a financial services industry, due to the inexpensive requirements of computer systems and storefront fittings. This is especially true for retail foreign exchange operators, which have smaller operating areas. However, capital intensity is expected to increase over the next five years due to higher penetration of online players with no physical presence and the ongoing rollout of self-service foreign currency dispensers by the major banks...purchase to read more.

    Additional Insights for the Foreign Currency Exchange Services Industry

    IBISWorld has determined the most important Key Success Factors for the Foreign Currency Exchange Services are:

  • Ability to control stock on hand
  • Having a good reputation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as International travel to Australia and International travel by Australians in the Foreign Currency Exchange Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Foreign Currency Exchange Services Industry?

    Firms in this industry offer retail foreign currency exchange services to the public. The industry excludes wholesale foreign currency dealing services provided to institutions and investors.

    Industry Products
  • Kiosk operations
  • Retail bank foreign exchange
  • Online foreign exchange
  • Instore foreign exchange
  • Industry Activities
  • Currency exchange services through and online outlets
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel to Australia
  • International travel by Australians
  • Number of foreign students
  • Net migration
  • Trade-weighted index

  • Current Performance
  • Fluctuating Australian dollar
  • Tourism and travel
  • Moving online
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Tourism and travel
  • Profitability and online disruptors
  • Foreign currency exchange inquiry
  • Table: Foreign Currency Exchange Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Foreign Currency Exchange Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Software Retailing
  • Financial Planning and Investment Advice
  • National and Regional Commercial Banks

  • Products & Services
  • Retail bank foreign exchange
  • Kiosk operations
  • Online foreign exchange
  • Instore foreign exchange
  • Chart: Foreign Currency Exchange Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 41 to 60 years
  • Consumers aged 26 to 40 years
  • Consumers aged 25 years and under
  • Consumers aged 61 years and older
  • Chart: Major Market Segmentation for the Foreign Currency Exchange Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Foreign Currency Exchange Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Foreign Currency Exchange Services Industry

  • Industry Globalization
    Travelex Limited, Travelex Limited,
  • Table: Travelex Limited - financial performance
  • Table: Travelex Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Foreign Currency Exchange Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Foreign Currency Exchange Services Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bid-Ask Spread
  • The difference between the buying and selling price of a currency.
  • Hedging
  • An investment position that aims to offset any risk posed by a companion investment.
  • Spot Rate
  • The immediate market price for a foreign currency.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Foreign Currency Exchange Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Foreign Currency Exchange Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Foreign Currency Exchange Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Foreign Currency Exchange Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.