Mark Dx

At @KASTxyz are dropping FX from 2% to 0.5-1.75% & USD spend remains 0% We are constantly renegotiating contracts, and this allows us to reduce costs, and pass this onto users. Why was it 2% in the first place? — Let me explain, for those who want the long version. 1/ The schemes charge a cross-border fee of 1%. This applies to FX & even USD which is spent outside the US (for which we charge 0% but makes up 20% of spend. Combined the blended was 1.2-1.3% in costs 2/ Then we have processing fees, for authorization and settlement, which is higher in cross-border. This is typically another 0.3-0.4% 3/ Then we have the fraud, decline and other costs which are higher on FX transactions. 4/ And costs to swap & settle USDC/T to the schemes. Blended, it cost us >2%. We charged 2% to cover costs. The good news, is because we now have scale and funds, renegotiate and bring these costs down. It’s a multi-year process, and complicated. Why the variance between 0% and 1.75%? Because our costs are different between markets, and where we can go lower we will. Soon, we hope to have multi-currency cards which would have no FX in places like Europe, Brazil etc. My target for later this year is to reduce the maximum to 1.5% and have over 50% of where global spend happens at between 0-1%. Far from done yet, just getting started.