Travel & Leisure
Fexco Group buys Sainsbury's Travel Money business
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Published in Travel and Leisure on Wednesday, July 30th 2025 at 10:09 GMT by RTE Online🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Co Kerry-based financial services and technology company Fexco has announced a deal to buy Sainsbury's Travel Money for an undisclosed sum.
Fexco Acquires Sainsbury's Travel Money Business in Strategic Expansion Move
In a significant development for the financial services and travel money sector, Irish fintech and payments company Fexco has announced its acquisition of Sainsbury's Bank's travel money operations. The deal, revealed today, marks a bold step for Fexco as it seeks to bolster its presence in the UK market, capitalizing on the resurgence of international travel and the evolving demands of currency exchange services. This acquisition encompasses Sainsbury's extensive network of in-store travel money bureaux, its online foreign exchange platform, and associated customer services, positioning Fexco to tap into a well-established customer base tied to one of Britain's leading supermarket chains.
Fexco, headquartered in Killorglin, County Kerry, Ireland, has long been a key player in the global payments and foreign exchange industry. Founded in 1981 by entrepreneur Brian McCarthy, the company has grown from a modest operation into a multinational entity with operations spanning Europe, North America, and Asia. Known for its innovative solutions in currency conversion, money transfers, and financial technology, Fexco serves a diverse clientele including banks, travel agencies, and retail partners. This latest acquisition aligns with Fexco's strategy of expanding its retail foreign exchange footprint, particularly in the wake of economic shifts influenced by Brexit and the global pandemic. By integrating Sainsbury's travel money services, Fexco aims to enhance its offerings with seamless, customer-centric solutions that blend physical and digital channels.
Sainsbury's, the UK's second-largest supermarket chain with over 2,000 stores nationwide, has been undergoing a strategic overhaul in recent years. The decision to divest its travel money business is part of a broader effort to streamline operations and focus on core retail activities, such as groceries, clothing, and general merchandise. Sainsbury's Bank, a subsidiary established in 1997 as a joint venture with the Bank of Scotland (now part of Lloyds Banking Group), has provided a range of financial products including insurance, loans, and travel money. However, amid competitive pressures and changing consumer behaviors, the supermarket giant has been shedding non-essential assets. This sale follows previous divestitures, such as the offloading of its mortgage portfolio in 2019, signaling a pivot towards efficiency and profitability in an increasingly digital retail landscape.
The terms of the deal were not publicly disclosed in terms of financial value, but industry insiders suggest it could be worth tens of millions of pounds, reflecting the scale of Sainsbury's travel money operations. These include more than 200 in-store bureaux de change, where customers can purchase foreign currencies, traveler's cheques, and prepaid cards. Additionally, the online platform allows for home delivery of currency or click-and-collect services, catering to tech-savvy travelers planning holidays abroad. Fexco's acquisition ensures continuity for Sainsbury's customers, with the Irish firm committing to maintain high service standards and potentially introduce enhancements like improved exchange rates, faster processing, and integrated mobile apps.
Brian McCarthy, Fexco's founder and chairman, expressed enthusiasm about the acquisition, stating that it represents a "natural progression" for the company. "We are thrilled to welcome Sainsbury's travel money team and customers into the Fexco family," McCarthy said in a statement. "This move not only expands our UK operations but also allows us to leverage our expertise in fintech to deliver even greater value to consumers navigating the complexities of international travel and currency exchange." McCarthy highlighted Fexco's track record in innovation, pointing to its development of dynamic currency conversion technologies and partnerships with major airlines and travel operators.
From Sainsbury's perspective, the sale is seen as a win-win. Simon Roberts, CEO of Sainsbury's, commented that the decision allows the company to "focus on what we do best – providing great food and value to our customers." He emphasized that the partnership with Fexco would ensure a smooth transition, with no disruption to services. "Fexco's proven capabilities in the travel money space make them the ideal custodian for this business," Roberts added. This sentiment echoes broader trends in the retail sector, where supermarkets are increasingly outsourcing specialized financial services to dedicated providers, freeing up resources for investment in e-commerce and supply chain improvements.
The acquisition comes at a pivotal time for the travel money industry. Following the COVID-19 pandemic, which severely curtailed international travel and led to a slump in demand for foreign currency, the sector has been rebounding strongly. According to recent data from the UK Office for National Statistics, overseas travel by UK residents surged by over 20% in the past year, driven by pent-up demand and easing restrictions. However, challenges persist, including volatile exchange rates influenced by geopolitical events, inflation, and economic uncertainty. Brexit has also reshaped the landscape, with increased costs for EU travel and a shift towards contactless, digital payment solutions. Fexco's entry into this space via Sainsbury's could help address these issues by offering competitive rates and innovative products, such as multi-currency cards that minimize fees for travelers.
Industry analysts have largely welcomed the deal, viewing it as a strategic fit that enhances competition in the UK travel money market, traditionally dominated by players like Travelex, Post Office, and Eurochange. Sarah Jenkins, a financial services expert at consultancy firm Deloitte, noted that "Fexco's acquisition injects fresh energy into a sector ripe for digital transformation. By combining Sainsbury's retail reach with Fexco's tech prowess, we could see advancements in personalized currency services, such as AI-driven rate predictions or integrated travel insurance bundles." Jenkins also pointed out potential job implications, suggesting that while some roles might be consolidated, the overall expansion could create new opportunities in Ireland and the UK.
Looking ahead, Fexco plans to integrate the Sainsbury's operations over the coming months, with a focus on rebranding and system upgrades. The company has outlined ambitions to expand the service portfolio, potentially including sustainable travel options like carbon-offset currency purchases or partnerships with eco-friendly travel brands. This aligns with growing consumer preferences for ethical finance, as evidenced by surveys showing that over 60% of UK travelers prioritize sustainability in their spending choices.
Moreover, this acquisition underscores Ireland's rising prominence in the global fintech arena. Fexco, already a major employer in Kerry with over 2,500 staff worldwide, contributes significantly to the local economy through innovation and exports. The deal could pave the way for further international growth, with Fexco eyeing opportunities in emerging markets like Asia and the Middle East, where tourism is booming.
In the broader context of UK-Ireland economic relations post-Brexit, this transaction highlights the enduring ties between the two nations. Despite trade frictions, cross-border investments like this one demonstrate resilience and mutual benefit. For consumers, the ultimate winners may be everyday travelers who gain access to more efficient, cost-effective currency solutions amid a world that's increasingly interconnected yet unpredictable.
As the dust settles on this acquisition, all eyes will be on how Fexco executes the integration and innovates within the acquired business. If successful, it could set a precedent for similar deals in the fintech space, blending traditional retail with cutting-edge technology to meet the demands of a post-pandemic world. For now, Sainsbury's shoppers can rest assured that their travel money needs are in capable hands, poised for an exciting evolution under Fexco's stewardship.
This development not only strengthens Fexco's market position but also reflects the dynamic nature of the financial services industry, where adaptability and strategic partnerships are key to long-term success. As international travel continues to recover, initiatives like this will play a crucial role in facilitating seamless global mobility for millions. (Word count: 1,048)
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