TransferWise is a UK money transfer service launched in January 2011 by Kristo Käärmann and London-based Taavet Hinrikus and offices in a number of cities including Tallinn, New York and Singapore. The company supports more than 750 exchange rates worldwide, including GBP, USD, EUR, AUD and CAD, and provides accounts with multiple currencies. In 2018, TransferWise’s net profit reached $ 8 million, with a customer base of $ 4 million, which together collect $ 4 billion a month.
The concept should correspond to transfers with other people and then have a small commission using the interbank middle exchange rate, as opposed to traditional currency conversions, where the buy and sell rates and the broker have a difference between the two.
TransferWise was founded by Taavet Hinrikus, Skype’s first employee and financial advisor to Kristo Käärmann. As Estonians work between their home country and the United Kingdom, they had personal experience of “international money transfer pain” as a result of bank charges for the amounts they needed to transfer from euro to pound and vice versa. In the words of Hinriks, “I lost five percent of the money every time I move. At the same time, my co-founder Kristo Käärmann (also from Estonia) was starting to pay in the UK and lost a lot of money to transfer the money back home to pay for the mortgage there”. \ t
Co-founder of TransferWise Taavet Hinrikus in 2017
It is inspired to private organization, with Hinrikus – who was paid in euros – putting this currency directly into Käärmann’s Estonian account so he could pay his mortgage without having to convert pounds to euros, while Käärmann retaliated by putting pounds into Hinrikus’ UK This arrangement has led them to develop an exchange rate service that is cheaper than that of established institutions.
In February 2012, their approval by the UK Financial Regulator was completed. In April 2013, Bitcoin was stopped letting users buy, citing pressure from banking service providers. In the first year, Transfers via Transmission has reached EUR 10 million. In May 2017, the company announced that customers use the service for over £ 1 billion each month.
In May 2016, TransferWise’s request to “save up to 90% against banks” by the Advertising Standards Authority was considered misleading. According to an independent comparison website, Monito.com, Transferwise was on average 83% cheaper than the big four UK banks on major currency “routes,” but in some cases could be up to 90% cheaper. In April 2017, Santander’s internal report showed how much the bank spends on its international money transfer fees and how much it can lose to new subscribers, namely TransferWise.
In April 2017, Brexit announced its decision to move its European headquarters from London to the European continent. The same month, the company announced its APAC hub in Singapore after becoming one of the first remittance companies to offer online verification in Singapore.
In May 2017, TransferWise launched a new service, a borderless account. The account is initially intended for businesses and sole traders with an account and card for consumers scheduled for the next year. A borderless account was available in Europe and the US at launch. The Mastercard multi-currency debit card was launched in January 2018 for EU-based customers and was later added to customers in the United States with multiple countries to follow in 2019.
Also in May 2017, the company announced that it was operationally profitable from the beginning of the year.
A year later, in May 2019, the company had a secondary investment round of $ 292 million, reaching a total of $ 3.5 billion. This is more than double the TransferWise Awards achieved at the end of 2017 at the time of its $ 280 million E Series.