The Edinburgh-based supermarket bank is also to trial cash machines that dispense foreign currency as part of a big push into the holiday money market after 23 per cent growth in sales over the past year.
Peter Griffiths, chief executive of Sainsbury's Bank, said the venture was "a key part of our growth strategy".
Travelex has cemented its seven-year partnership and will continue to supply over 50 currencies to the bank's in-store bureaux across the UK and online. The bank yesterday opened its 150th bureau (in Brentwood, Essex) and is set to open a further 28 by the end of 2014.
Since 2007 Sainsbury's has dispensed over £1 billion in foreign currency and served more than 5m customers. euros and dollars are most in demand but it reports significant growth in other currencies such as the Mexican peso (up 49%) and the Croatian kuna (up 55%). The bank says 85 % of customers get a "preferential rate" by having a Nectar card.