Sainsbury’s streamlines its payments strategy by outsourcing Travel Money.
UK supermarket giant Sainsbury’s has continued its withdrawal from the financial services market, selling its Travel Money arm to Fexco Group.
The agreement, announced on July 30, will see Fexco take over all operations, including the brand’s digital platform and over 220 in-store bureaux. Fexco’s UK retail footprint will expand to more than 460 locations, with access to 18 million Nectar loyalty members.
“We are thrilled to welcome Sainsbury’s Travel Money, its talented team, and their millions of loyal customers to Fexco Group,” said Neil Hosty, CEO of Fexco Group.
“The reputation and reach of the Sainsbury’s Travel Money business, with over 220 locations, make it a perfect fit with our commitment to delivering market-leading travel money services.”
Sainsbury’s has stated customers will notice no immediate changes as services remain available in-store and online.
“Travel money is a service our customers value and we’re pleased to be entering a new long-term partnership with Fexco Group that ensures they can continue to access foreign exchange both in-store and online with the same ease and confidence,” said Bláthnaid Bergin, Sainsbury’s Chief Financial Officer.
“With over 220 bureaux nationwide and almost 10% of the UK market, this is a well-established part of our offer and we’re pleased it will continue under the Sainsbury’s brand.”
Sainsbury’s shift in focus
While the brand will continue to operate under Fexco, the deal is part of a broader move from operator to partner-based financial services.
This aligns with its Food First strategy, launched in 2020, which prioritised focusing on core retail operations.
In January 2024, Sainsbury’s confirmed it would begin offering financial products through dedicated financial service providers using a distributed model, a strategy which is now nearing completion.
The Fexco agreement is the fourth major financial divestment by the retailer in recent years. In June 2024, NatWest agreed to acquire Sainsbury’s retail banking assets, including £2.5bn in loans and deposits.
Before that, Sainsbury’s transferred its mortgage book to the Co-operative Bank and handed over its ATM business to NoteMachine.
Now, with the travel money business moving to Fexco, Sainsbury’s has almost fully transitioned out of operating its own financial products.
A broader retail retreat from banking
Sainsbury’s is not alone in rethinking its financial services strategy. Over the past few years, several major UK retailers have made similar moves, taking a step back from full-service banking in favour of more targeted offerings or external partnerships.
Tesco sold its mortgage book to Lloyds Banking Group in 2019 and exited the current account market in 2021, citing low uptake. While Tesco Bank still operates in areas like insurance and savings, its role has been significantly scaled back.
Marks & Spencer closed all current accounts in 2021. Its financial services arm, M&S Bank, a joint venture with HSBC, now concentrates on credit cards and insurance, with less focus on broader banking products.
John Lewis discontinued its personal loan products in 2021. The retailer has shifted toward supporting retail credit and insurance rather than offering a full suite of financial services.
The Co-op Group sold off its banking business in 2017 after financial struggles. It now operates independently of banking, focusing on retail.
