We’ve all been in a situation where, we had to transfer money to another country. One thought about this rings a bell about the nuances that it comes with – be it the huge commission, the fluctuating forex rates or bank hassles. Now let’s assume a platform which allows sending money without all the trouble that’s mentioned above. Wouldn’t that be great??
Well, look no further… Transferwise, the tech pioneer is actually doing this! The claim is that one can send money at real market rates for a small fee. Hearing this, I decided to give it a try the next I make a cross border transaction and to my surprise their claim was indeed true. I could send money at a mid market rate with a fee that didn’t cost you a fortune when compared to sending money with a traditional bank or firms like Western Union & Moneygram.
How do they do this is what makes them very innovative & a true pioneer by all means. Unlike traditional banks, there’s no currency conversion happening here. Transferwise uses two local currency accounts – one to receive money from the sender and the other to transfer the equivalent amount to the beneficiary. By doing this, they do not lose money due to currency conversion thereby providing an opportunity to levy a tiny fee.
Though the offer was good, there was a catch! Only users with internet and bank accounts can use Transferwise as the company doesn’t have any offices/physical locations like banks and other money transfer service providers. But Transferwise has figured a way to tackle this. They have started issuing borderless accounts with a debit card to keep.
TransferWise chairman and cofounder Taavet Hinrikus says in a statement: “The borderless account is a game changer for anyone living or working between countries. Opening a bank account abroad is incredibly difficult without a local proof of address, but the borderless account can be opened in minutes. For expats, second homeowners, freelancers, sole traders and more the borderless account is invaluable.”
All this growth doesn’t come easy. Transferwise managed to stay relevant in the market by continuously innovating and re-thinking. They heard what their customers told and worked on them and this is a testimony to the position in the market that they hold today.
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