Apax-owned Travelex to expand in China
Apax Partners-owned Travelex will expand its China footprint on becoming the first overseas operator to receive a nationwide foreign exchange license. The company plans to add a further 20 outlets in the next year to its current tally of 35, begin rolling out Travelex-branded ATMs and launch online services.
"The opportunities available to us in China are huge," Peter Jackson, CEO of Travelex, told the Financial Times. "In China they're building 80 airports - growth is turning into an explosion."
The company, acquired by Apax for $2 billion in 2005, has held regional licenses allowing it to provide foreign exchange services to non-Chinese and then Chinese citizens for several years. A nationwide license should reduce the bureaucracy tied to opening new outlets.
According to the China Tourism Academy, Chinese tourists spent an estimated $69 billion overseas in 2011, up 25% year-on-year. Travelex says that the VAT refunds offered to non-EU visitors to the UK and France have been a big hit with Chinese tourists, who spend three times more than other travelers.
Chinese regulators, including the State Administration of Foreign Exchange, have agreed in principle to award Travelex a license, but final approval is pending.
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