Background of TransferWise

TransferWise is a UK based peer-to-peer (P2P) marketplace which enables money transfer services available on online platforms.

This mobile application enables users to send money across borders at cheaper rates.

It provides multiple currency exchange media, as well as the ability for multi-currency accounts.

Origins

The pioneer of the TransferWise service provider was the TransferWise UK branch. The experiences of Estonian natives Taavet Hinrikus and Kristo Käärmann led them into the innovation.

Trading between UK and Estonia, they started directly depositing money in each other’s account in the required currencies, thereby saving a significant amount that banks would have charged them.

Intended Use

TransferWise app was introduced to reduce the cost of money transfer, especially the case with multi-currency denominations. It sought to match people with others in need of their currency without using interbank exchange rates. The providers of this service would charge only a small amount of commission. Also, this service has eliminated the issues of buy and sell; where banks used to charge higher rates.

The developers of this application decided to provide a solution to the challenges they had experienced when transferring funds across borders. Precisely, their goal was to get rid of the issues of high money transfer costs across borders. Indeed, the app provides ultimate services than any other money transfer service provider.

Reviews

Trustpilot ranks TransferWise as an excellent service provider.

It is rated at 9.3 by Trustscore.

If this is anything to go by, this is one the best result among the top providers in the industry.

  • Best currency exchange rates available
  • Cheap transfers from bank account to bank account
  • Excellent service

How it works

Rather than directly transferring money to the recipient, TransferWise channels the money to a recipient with a similar need but with an equivalent amount, only conversely. That’s the main principle of a peer-to-peer (P2P) marketplace.

The recipient’s money would subsequently be rechanneled to somebody with an equivalent amount and need. The system avoids transfer across borders and the need for currency exchange.

TransferWise currency exchange rate working principle

Procedure of money transfer

Create a TransferWise account

The first step is to create an account by signing up on the TransferWise Website. 

Upon login, the user can choose the service of choice. From the profile, you can initiate a transfer.

The online money transfer process 

can be summarized as follows:

  • Login
  • Initiate transfer by providing recipient’s bank details
  • Deposit money in your country’s bank account to TransferWise’s local currency account.

Easy for the sender

The procedure is easy for the sender. Once a transfer has been initiated and completed on the part of the sender, TransferWise converts the money at the real exchange rate and pays out the result in a foreign bank account to the recipient as required by the sender. In a way, TransferWise is the intermediary in money transfer; hence, a cheaper option.

This provider has incorporated the use of debit and credit cards, bank accounts domestic wire transfer, SWIFT international transfer among other media for convenience. Besides, it can work with almost every available payment platform.

Fee Structure

The fees charged to send money is negligible. Mainly, TransferWise is 83% cheaper than the conventional bank money transfer systems. There is no need to use banks in this case since the service facilitates deposits in others accounts in any preferred currency and vice versa.

Transferwise does not charge an explicit transfer fee, but a small commission for its services. Also, its tax exemption in the UK has made it cheaper.

Borderless account

The TransferWise Borderless account was launched in May 2017. This new service will further improve the services offered to account holders; businesses and private individuals after being fully operationalized on a global scale. 

To get joining bonus use link transferwise

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