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Presentation abstract · IBPPC 2026

Effects of Price Transparency in International Currency Transfers on Consumer Decision-making

Presented by: Greg Kubitz

Authors: Greg Kubitz, Guillem Roig, Santiago Sautua

Abstract

In light of the ACCC’s 2024 update on Transparency and Competition in IMT Services, we conducted two online experiments that simulated real-world IMT decisions using actual provider quotes and considered the “effort cost” of searching for information. Our findings suggest that increased transparency improves consumer awareness of pricing structures, regarding hidden costs and price mark-ups. Participants’ awareness increases from 38% to 72%. However, increased awareness does not lead to more informed decisions or improved outcomes. In contrast, stating the value of the best available offer significantly boosts consumer search behavior, resulting in better financial outcomes. Active search increases by 25 percentage points and leads to a more than 50% increase in median savings.