This Is How the World’s Most Popular Fintech Works!
More and more people are switching to Transferwise because this is the only fintech that offers a cost-effective alternative that is also easy to use.
Former Skype employee Taavet Hinrikus and former PriceWaterhouseCoopers consultant Kristo Kaarmann founded the startup Transferwise a few years ago. The company is currently one of the fastest-growing in Europe. Transferwise is limitless and at the same time cross-border payment system with numerous interfaces to different currencies and banks. According to the renowned financial magazine Financial Times, Transferwise was able to increase by 3,392 percent between 2013 and 2016. During the same period, the number of employees increased to 700.
The company’s simple business model is essentially based on the possibility of cheap transfers abroad. Compared to other banks, which often charge between five and ten percent for a transfer, Tranferwise is much cheaper. In addition, many customers criticize the fact that the exchange rate is non-transparent, which in turn leads to considerable frustration.
Transferwise always changes to the current middle exchange rate and thus the official exchange rate. The fees are between 0.3 and 1.0 percent. In addition, Transferwise has bank accounts in almost all countries, which is why the company can operate so cheaply on the market. Basically, no money is sent abroad, just a rebooking. The money is then changed at the respective bank abroad.
In the meantime, numerous providers with a similar business model have positioned themselves on the market. Transferwise still enjoys the greatest distribution and associated awareness. In addition, some of these companies do not offer a comprehensive service. Against this background, the lack of web access is not uncommon.
Transferwise stands for simple money transfers. With the so-called “Borderless Account”, users have the option of opening in more than 40 currencies. In a way, this creates a kind of bank account in the respective local currency. Users can make deposits themselves or have money transferred to them. A very practical option, especially for people who like to travel.
In 2019 Transferwise also introduced the Borderless Debitcard, which can be ordered for certain currencies.
In 2018, Transferwise had $100 million in revenue. Over the past few months, the company has been able to collect large amounts of investment funds, which it plans to use to expand into Asia, South America and the Pacific. Transferwise is by no means a second Bitcoin and is not resistant to censorship. Nevertheless, Transferwise provides a good platform for trading Bitcoin (BTC)s.
Author: Marko Vidrih
Featured image credit: Techworld
Published at Mon, 17 Feb 2020 19:02:39 +0000
