Banks aren’t keen to exchange it and the fees involved invariably cost more than the value of the coins and notes, so it usually ends up in the back of a drawer somewhere or given to the kids as “play-play” money.
Two local lads have solved this conundrum with a fintech idea that converts unwanted change into the currency of your choice.
Jeff Paterson and Oliver du Toit are the brains behind Fourex. a kiosk where mixed coins and notes are simply dumped in the slot, and the machine uses its high-speed technology to identify, evaluate and exchange each and every coin or note.
The kiosks accept coins and notes from over 150 currencies, as well as money from the old European currencies. (Deutschmarks, pesetas and schillings). Local UK coins can also be converted into cash. You can choose to exchange your money directly into either pounds, euros or dollars.
The idea was so innovative that it caught the eye of maverick millionaire, Richard Branson, who helped the duo get their project off the ground through his Pitch to Rich 2015 competition, which Fourex won.
Paterson answers a few questions about their awesome idea.
Paterson: Both Oliver and I worked in the construction industry for most of our lives. We met in the Middle East when we were building million dollar projects for Etihad Airways. Both of us were born in Joburg.
Paterson: One of the perks of working for an airline is the discounted flights, and it wasn’t long before I had built up a jar of money, left over from all my overseas trips. I took my these notes and coins to a bureau de change, which would not exchange the coins, and wanted to charge me a terrible exchange rate on top of a fee per currency to exchange the notes.
The fees they were proposing to exchange notes were often more than the value of the note itself. Our theory was that everybody who travels must face the same problem, so there must be billions of rands in unused currency lying around. It took us nearly five years to develop the technology, build the database, and secure the contracts to place the machines.
Paterson; Our service appeals to almost everybody, so we had to be visible to as many people as possible. The London Underground sells over 1,2bn tickets a year so this would be the ideal place for our machines.
After two years of negotiating, we finally managed to secure a contract with London Underground to place our machines into their stations. We currently have machines in Kings Cross, Blackfriars and London Bridge stations, and have an aggressive roll out, with over 400 machines planned within two years. We are negotiating further contracts with other rail companies and supermarket chains.
Paterson: Winning Pitch to Rich transformed our business. Fourex has the potential to revolutionise an industry, and fills a definite need. Having Richard Branson, the world’s greatest entrepreneur, give us the stamp of approval validated that, and the exposure from winning Pitch to Rich has opened so many doors.
Since winning the competition, we raised investment from a South African capital fund which will help us roll out across the UK, and we continue to get unbelievable support from the team at Virgin. A small example is the opportunity to place our machines into the Virgin train network, which gives us great locations outside of central London.
We have been nominated as one of Europe’s top 100 fintech firms for 2016, as well as one of the UK’s top 50 disruptive firms.
Paterson: We are looking to change an industry. We believe that by solving a problem and offering any kind of exchange, at the best possible exchange rates without any hidden fees, we have the capacity to disrupt the market. By digitising an industry, we reduce costs, rely on less staff, and are able to offer a better service to our customers.
Paterson: We are talking to a few interested parties in South Africa at the moment. Hopefully early in 2017.
