Published On: Tue, Feb 21st, 2017

Transferwise: One of the Remittance Industry’s Hottest Startups



By Contributing Author

Transferwise is the remittance industry’s hottest startup company, and for good reason. With their wide-reaching user base, accessible startup mentality, and endorsements from the likes of Richard Branson, they have rapidly become a major player in the remittance industry. What’s more, because Transferwise offers their services by using the real exchange rate and are upfront about their incredibly minimal fees, they’ve helped to spark a revolution among money transfer operation users everywhere.

For their outstanding approach they have received many awards including MoneyTranferComparison’s award for “Best for Small to Medium Transfers”, Europas #1 startup, and EY Entrepreneur of the Year in UK (2015).

The idea behind their enterprise is simple – international money transferring shouldn’t be a hassle, and people looking to use these services shouldn’t be bombarded with hidden fees so that they’re overpaying to send and receive money. They’ve built their money transfer empire on this unpretentious base idea, and people are taking note. As the business expands, their services cover both individuals and businesses looking to transfer funds internationally.


What services does Transferwise offer?

Transferwise believes that there needs to be innovation in financial services across the board, and they offer a variety of services in an attempt to make international finance easier for their users. Their primary market are individuals looking to transfer money internationally – whether that’s to loved ones, or to their own bank accounts while they travel or live abroad. Their system is straightforward to use with both a web presence and a mobile app available to users. It’s also easy to register, and to view the fees before you move forward with any transaction, making the money transfer process seamless and surprise-free. Transferwise accepts payments through debit/credit card, bank transfer, and, in some cases, services like Apple Pay or Android Pay.

In addition to serving individuals, Transferwise also offers services for businesses doing work internationally. With safe and secure, next-day payments, flexible payouts, and worldwide coverage, Transferwise truly does strive to make doing business internationally painless and cost-effective for their business users. They also offer the ability to make international payments on the go with their IOS and Android apps. Services for both individuals and businesses include being able to track your payments and see your payment history so that you always know exactly what’s going on with the funds you’re transferring.

The best part about Transferwise’s services is that their fees truly are very minimal. In comparison to what people looking to transfer money internationally would pay at a bank or other financial institution, Transferwise has them beat in a big way. What’s more is that their fees, often as low as 0.5-1% with a minimum fee of a mere $3.00 USD for smaller transfers, are all easily spelled out and listed for you directly on their website.


How do they keep their fees so low?

Transferwise’s incredibly low fees are certainly something to marvel at – especially in the remittance industry. And for a startup? It’s almost too good to be true, a unicorn in the industry, if you will. But their business model actually makes sense, which has prompted big name investors such as Richard Branson to throw their weight behind the financial services startup.

In order to transfer funds so inexpensively, Transferwise matches payments up with other payments going in opposite directions using a highly advanced software model. Essentially, the money you transfer never leaves the country you’re transferring from. Instead, they route it to someone who is waiting on similar funds from someone overseas. Meanwhile, the person you were sending money to is receiving funds from someone who is trying to send money out of their own country. This means that the money everyone is transferring around the world never has to cross international borders, or deal with the messy transfer fees that banks and other brick and mortar financial institutions have a tendency to run into. The business model is truly genius, and it reduces the costs of transferring drastically – benefitting both you and the company itself.

The Startup Factor

This mentality of pure transparency is appealing, and it’s the ideals that Transferwise has founded their startup on. As a matter of fact, in an effort to remain completely transparent they even offer all of their employees equity, ensuring that, “they’re all in this together.” And their business is growing – constantly.

As far as startups go, their founders, Kristo Käärmann and Taavet Hinrikus, have found an amazing niche market of users who had a genuine need for their services. Their commitment to providing a completely transparent money transfer experience, and the unique methods they use to route money all around the world, is unprecedented. Next time you’re looking to transfer money internationally, either as an individual or a business entity, it’s worth it to look into Transferwise as your money transfer operator. With their wide reaching transfer network, it’s difficult to find a location to which they don’t transfer funds. And, of course, the transparency of their fees speaks for itself.



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