Good ways to save money are around us. We must search for them. One of the methods is the TransferWise company. Two Estonian guys, who worked with Skype founders, created a money transferring company.
People live in different countries. Some of them are overseas; some live on the same continent. When somebody wants to transfer money to a different country, they must pay a fee. They will take a 12 or 10 percent from the whole sum. There are exchange rates and transaction fees.
Kristo Karmann and Taavet Hinrikus thought that here is a better way to save money.
How does it work?
TransferWise computers check if there is money on both sides of banks. The registration process is simple. You fill out your data, such as name, residence, and details about the bank. Later on, you choose a sum and write-in data about the person or business to whom you send money. It takes a few minutes, and your cash travels to a different account: there no real money, just exchange of information.
Competition Does Not Scary Founders
These guys know how to serve customers. They serve individuals. They charge a small fee.
TransferWise took a small portion of business from big banks, but customers are here. The demand is too. People live in different countries, but they have companies and families somewhere else.
According to FORBES, real competition comes from MoneyGram and the Western Union. TransferWise must polish the interface of mobile apps and offer lower prices for competing with other companies.
Owners excited about the possibility to conquer part of money transferring business. TransferWise product teams charge already 80 percent less compared with local banks.
How About the Blockchain?
The blockchain is a technology that let’s transfer money without third-party intermediaries. FORBES quote Securities analyst Gil Luria which thinks that, within ten years, 20 percent of international human-to-human money transfers will happen via blockchain. To Luria, TransferWise is “an intermediate step.”
The blockchain is a new technology. It is a future, but for now, TransferWise does a great job when they save customers money.
TransferWise Is a Great Example
I think that TransferWise is one of the thousand examples which show that always is the demand for smart decisions. These guys looked after customers’ interests. They got an idea, researched it, created a team, and took action. When success is around them, we can applaud and be inspired by them.
These success stories can serve entrepreneurs as ways how to stream to dreams and reach goals.
Carlton Gonder says
Cash exchanges with TransferWise are not all that not the same as routine cash exchanges: the client picks a beneficiary and a coin, the cash to be exchanged is taken from his or her record, the exchanging organization charges for the administration, and some time later, the beneficiary gets the installment in the picked money.
The distinction lies in how TransferWise courses the installment. Rather than exchanging the sender’s cash specifically to the beneficiary, it is diverted to the beneficiary of a proportionate move going the other way. In like manner, the beneficiary of the exchange gets an installment not from the sender starting the exchange, but rather from the sender of the proportional exchange. This procedure keeps away from excessive money transformation and exchanges crossing outskirts.
Thanks for the wonderful article and Info!
Hello, Carlton, thanks for comprehensive feedback. These guys are so impressive to me because they look for ways how to simplify process, make a profit from it and help for customers. On the end, it will be always a customer who will decide if you need this service or not. I wonder why nobody thought about this before them. Anyway, thanks to them, I can send money to any place on the world using TransferWise service and paying few times less. It is so simple.
This is my first time being exposed to any money transfer system like this.
It is easy to identify where they have a market. Banks thrive off of interest rates and do not care much about the customer’s needs. Transferwise appears to offer a service that benefits its members.
How long does a transfer take through transfer wise compared to a bank?
The Transferwise is few years already around, just it is not wide promoted. It takes few days to transfer money, but the payment for transaction is less compare with bank or Western Union. People who send money often to overseas can save using Transferwise company’s service.
All the best, Nemira.