Do you know you’re being robbed of your hard earned money by your trusted banks when you transfer money? While those “free money transfer at zero percent commission” is purely a lie when you actually lose your money in their hidden charges you ain’t aware of. Sigh! sad it is but what options do we have. Being robbed or not, that money has to be transferred by you, right? But Kristo Käärmann and Taavet Hinrikus, the two friends were not someone who would lose heart that easily and so initiated the start-up TransferWise.
The idea of TransferWise clicked the duo, when Taavet living in London at that time was paid in Euros and Kristo-who had to be in Belgium most of the time-was paid in Pounds. They did not want banks to eat away their money while converting it in the currency of their need and so cameup with the simple solution. They started checking mid-market rates on Reuters on monthly basis, in order to find the fair exchange rates. Kristo, CEO of Transferwise, put money in Taavet’s UK bank account and Taavet, Co-founder and Executive Chairman of Transferwise, put Euros in Kristo’s Belgian account. In doing so they both got the required currencies without paying the bank anything in return. The thought that “there must be others like us” resulted in Transferwise.
With investing companies like Valar Ventures( of Peter Thiel,founder of PayPal and first investor of Facebook), IA Venture, Index Ventures, Kima Ventures and Seedcamp, Transferwise has strong financial back up. Receiving and Sending money is simple. First, transfer has to be set-up by putting in the amount, destination and the mode of payment(debit, bank transfer). Then send the money, you want to be converted in the currency of your choice, to Transferwise. You can send it via bank transfer, 3D Secure Debit Card Payment( when you are transfering from GBP and EUR under £2000) and SOFORT banking( when transferring upto €10,000 and can only be used if you’re sending to Transferwise EUR). And from TransferWise, the money goes to the recipient in his required currency!
Receiving the money is as simpler as sending. You can put in the amount and currency you want your money to be sent in and choose where and how you want it to be sent. You will receive a “pay link” which you will have to send to your payer. Clicking the link, the payer will be taken to TransferWise webpage where he can feed in his details and pay in their local currency. Transferwise will convert it in the currency of your choice and will send you an email, explaining you when and how to expect the payment!
Unlike your bank, TransferWise takes only 0.5% of the total amount! Whereas the banks take around 5% of the total! At the moment TransferWise is only available in UK, USA, France, Germany, Spain, Ireland, Poland,Italy and Portugal.Imagine the flow and ease of money transfer if in later years we would be able to benefit from TransferWise!But right now we can only hope TransferWise to launch sooner in Pakistan, afterall most of our people work abroad and such services can come in handy!
You can learn more about TransferWise on its website .