More and more Bitcoin users are switching to Transferwise because it is the only Fintech that offers a cost-effective alternative that is also easy to use. Former Skype employee Taavet Hinrikus and former PriceWaterhouseCoopers consultant Kristo Kaarman founded the start-up Transferwise a few years ago. Currently, the company is one of the fastest growing in Europe. Transferwise is regarded as a borderless and at the same time cross-national payment system with numerous interfaces to different currencies and banks. According to the renowned financial magazine Financial Times, Transferwise has grown by 3,392 percent between 2013 and 2016. In the same period, the number of employees has increased to 700.
Simple business model as central success factor
The simple business model of the company is essentially based on the possibility of cheap money transfers abroad. Compared to other banks, which often charge between five and ten percent for a transfer, Tranferwise is much cheaper. In addition, many customers complain about the fact that the exchange rate is not transparent, which in turn leads to considerable frustration.
Transferwise always changes to the current average exchange rate and thus the official exchange rate. The fees for this service range between 0.3 and 1.0 percent. In addition, Transferwise has bank accounts in almost all countries, which is why the company can operate so favourably on the market. Basically, it is not considered to send money abroad, but only to transfer it. The money is then changed at the respective bank abroad.
In the meantime, numerous providers with a similar business model have entered the market. Nevertheless, Transferwise enjoys the widest distribution and the best reputation. Moreover, some of these companies do not offer a comprehensive service. Against this background, the lack of web access is not uncommon.
The Transferwise multi-currency account and borderless debit card
Transferwise stands for simple money transfers. With the so-called “Borderless Account” users have the possibility to open in more than 40 currencies. This creates a kind of bank account in the respective local currency. Users can make their own deposits or have money transferred. This is a very practical option, especially for people who like to travel.
In 2019 Transferwise also introduced the Bordless Debitcard, which can be ordered for certain currencies.
In 2018, Transferwise was able to record sales of USD 100 million. Over the past few months, the company has been able to collect large amounts of investment money, which will be used for expansion into Asia, South America and the Pacific. Transferwise is by no means a second Bitcoin and is not resistant to censorship. Nevertheless, Transferwise provides a good platform for trading Bitcoins.