TransferWise is a relatively new player in the money-transfer service scene. The firm operates in the contemporary milieu where international remittances are a dominant activity. Among the objectives of TransferWise is to make money transfer more seamless for the modern consumer. Recently, the up-and-coming startup launched new offerings. Besides the individual customers, these latest services’ target market is the business groups.
Short Profile of the London-Headquartered Remittance Provider
In 2010, TransferWise started its operations with business partners Taavet Hinrikus and Kristo Käärmann at the helm. The two pioneers of the firm established the international money transfer company in London. Hinrikus and Käärmann believed that time that the global funds transfer system had required an overhaul. Moreover, they realised that they were losing out on transfer fees when sending funds home from the United Kingdom to their native Estonia.
Hence, Käärmann and Hinrikus instituted three core values that, for them, are essential in the remittance services. The TransferWise founders believed that sending money overseas should be:
The founders affirmed that most of their money transfer processes get completed on the same day. This advantage makes their service a better option. Also, TransferWise consumers can sign up quickly, straightforwardly log in their account, and send money immediately.
B. FAIR AND AFFORDABLE
The London-based financial service startup utilises merely a single, reasonable exchange rate. Plus, it charges a single upfront fee.
TransferWise’s staff members commit to a procedure which they believe is effortless to perform, watertight, and provides bank-level safety.
With these core values, the United Kingdom-based remittance provider has been successful in the past ten years since its launch. TransferWise has expanded exponentially. Over six million consumers today utilise the services of the remittance provider in sending over £5 billion, or AUD 9 billion, every month.
New 2020 Offering of TransferWise for Australian Business Clients
TransferWise recently celebrated reaching a milestone. The accomplishment involves its customers depositing £2 billion or AUD 3.6 billion into its multi-currency accounts internationally. With the celebratory mood, the remittance company desired to share its latest achievement to its clients. Hence, this 2020, it has launched new features.
Similar to its individual clients, the business customers of TransferWise will benefit from its new Direct Debits offering. Users can set up direct debits from their balance denominated in the Australian dollar. In this way, they can make regular payments to Australia if they are in another territory.
The remittance provider remarked that this new “set and forget” service is helpful for Australian enterprises and expatriates currently based overseas. These specific consumers are those that still have payables back home, such as mortgages, bills, subscriptions, and rent which they have to settle.
Furthermore, as a component of the new TransferWise Direct Debits service, users will receive notifications regarding low balances or any upcoming payments. This benefit enables the clients to top-up their account beforehand.
Recently, TransferWise launched its Borderless Account. This electronic funds account complements the company’s existing services. Plus, the Borderless Account is multi-currency in nature. Freelancers, expatriates, and travellers can benefit the most as this offering is more flexible for clients dealing with more than one currency.
Moreover, the Borderless Account allows clients to spend utilising any currency. These customers can send and receive funds for free as well from their foreign currency account. TransferWise believes that this service is, on average, more affordable by eightfold compared to the offering of major banks in the United Kingdom.
Expatriates and Immigrants as TransferWise Clients
The 21st century comes after the era of globalisation. This time is when people continue to remain mobile, moving to various countries to migrate, work, or engage in business. With this global environment, TransferWise serves its clients by aiding them in dispatching funds to friends and family back in their home countries.
TransferWise’s Nicholas Lembo confirmed the constant need for remittances. As the Americas unit’s growth chief, he pointed out that this reality is the reason why they are concentrating on how they could enhance their remittance service. Lembo confirmed that they are continuing to engage in methods to achieve quicker and cheaper remittance transfers for their international clients.
Among the primary customers of the global remittance provider are expatriates and immigrants. These patrons are turning away from conventional service providers such as banks. The latter are bricks and mortar firms that require their clients to head to a physical facility to perform their transactions.
TransferWise understands that their customers demand security and safety when they send their money to their intended recipients. The traditional practice of going to a physical location to move money abroad does not appeal to them anymore. Hence, these consumers increasingly depend on digital firms as a reliable and trustworthy method for their remittances.
Furthermore, remittance providers typically require customers to settle a fee when sending funds to their relatives and friends overseas. The charge can depend on the amount of money transferred. The country of origin of the sender and the destination or location of the recipient are other considerations as well.
TransferWise affirmed the growth in its customer base, which attests the importance of remittance services in this era. Besides, this trend confirms the increased shift to digital services by today’s consumers. Like other remittance companies, TransferWise is also attempting to round out its offerings to expatriates and immigrants by developing banking products and other features. The latter are similar to those that traditional financial institutions offer.
For now, the remittance provider works by supplementing the capacities of conventional financial firms. As a financial services provider, TransferWise does not work to replace the banks at the soonest possible time. United States-based financial institutions are among the companies from around the world, integrating with the application programming interfaces of TransferWise. The Stanford Federal Credit Union and Bank Novo are among these financial institutions that aim to facilitate seamless cross-border payments.
What makes TransferWise beneficial is that it offers valuable service to underbanked consumers as well. These individuals are those who may be hesitant to open a bank account with a traditional financial institution. As among the top-10 unicorns in the financial service industry, TransferWise is making useful disruptions in the international money transfer scene with its new offerings for businesses. As consumers – both personal and corporate alike – have accelerated their adoption of mobile money transfer and payments features, the British startup can expect further customer growth and global relevance in the coming years.