transferwise uses a proprietary technology infrastructure to make international money transfers more efficient, faster and cheaper than traditional players in the industry.

How does it manage to do so?

The idea at the basis of TransferWise is to magically transform any international money transfer into a national one (usually free or costing much less than international ones), thus reducing costs for its users.

TransferWise holds bank accounts into every single country where it operates, maintaining a positive balance for each national currency (thanks to the incoming national payments from customers of that country).

When money needs to be converted into a different currency, TransferWise takes a part of the balance on the foreign bank account and transmits them to the corresponding local bank account of the recipient.

This approach allows to match opposite flows on money in different currencies, without having to convert them on the market (thus not paying fees to financial intermediaries).

With this peer-to-peer model, currency routes where the flow of money is pretty much balanced (e.g. GBP <> EUR) have very small operational costs.

For some routes where the flow of money is more unbalanced (e.g. USD / GBP to INR) TransferWise might still need to buy currencies on the financial markets, thus incurring into a higher cost. However, high trading volumes combined with the much lower costs on more “balanced” routes, permit to maintain these costs low.

What does this mean?

TransferWise mission is to bring fairness and transparency to the world of international money transfers. TransferWise will always offer the mid-market rate (the same exchange rate you see on Google), and thanks to the more efficient way of transferring money abroad described above, will apply the lowest possible transaction fee in a fully transparent way (something that your bank, Western Union or PayPal will likely not do).

About TransferWise

Transferwise is one of the hottest startups in the world right now, and considered a market leader in the Fintech sector, with a valuation of more than a billion dollars.

It is growing at a staggering pace of more than 100% in sales each year for the past 4 years, and has recently reported it is moving more than $500m every month for its clients.

How does it work?

TransferWise holds bank accounts in a number of countries and currencies and uses their customer’s to facilitate currency trades between each other.

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TransferWise currently supports over 27 currencies around the world, including the market’s largest pairings such as US Dollars, British Pounds, Euros, Indian Rupees, Swiss Franc, Hong Kong Dollars, Japanese Yen and Australian Dollars, just to name a few.

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