TransferWise Introduces Borderless Accounts for No Exchange Rate Money Transfer

TransferWise unicorn with the recent announcement of attaining profitability is holding a significant place in the international money market. The London-headquartered fintech is now targeting traditional banking by setting up ‘borderless’ bank accounts.

The peer-to-peer money transfer fintech is now looking beyond simply sending the money from one border to another. The company is planning to launch borderless accounts for the businesses, freelancers and sole traders who need a multi-currency account for trading across borders. All those who need to exchange currencies across borders can have the benefit of the low exchange rates.

The fintech will start with rolling out the new service in UK and Europe. however, the global rollHHowever, the global rollout is planned in the end of the current calendar year. So, as we featured that TransferWise would be coming up something targeting the problem points of the customers, here we see their step into bank account itself.

 The version of no border accounts for consumers will launch later the current year. A TransferWise debit card, not to our surprise, will also be launched. The fintech with its plans is looking forward to generating £100 million revenue this year.

The six-year-old fintech with the announcement of debit card launch place itself in the territory of neobank. The financial services startup is giving tough competition to the well-established foreign exchange startup Revolut which also promises low exchange rate.

However, the main target of the fintech is pitching in incumbent banks and sole trader market. The unicorn is attempting to resolve the problem of sole traders i.e., receiving and making payments in multiple currencies.

The borderless accounts

TransferWise

The borderless account by the unicorn offers account numbers in UK, Europe and US. It is similar to having local accounts in these countries. So, it would be like you can operate on local banks with the particular account number.

Now if you receive money into the particular account having matching currency, you won’t have to pay any exchange rate fee. For instance, suppose you receive currency in Euros in your own local account set in Europe. Hence, as no exchange occurs here, you won’t have to bear exchange fees. You can then move currency, if you need, from one country account to another. You have to bear only minimum mid-market exchange rate and commission. The fintech do not charge any extra minimum fees. TransferWise supports 15 internal currencies to make internal money transfer. Sounds much competitive!

To make payments from your borderless accounts, the unicorn has a small standard business charge. Notably, the fintech does not apply charges to receive payments and has no monthly fees provision.

Already, gaining a significant share of the international money market, this new introduction would let the $1.1 valuation bearing unicorn to enter potentially into banking.

 

Avatar
Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine; she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Netflix gets overweight rating from analysts for 4th quarter

Netflix gets overweight rating from analysts for 4th quarter

Netflix will report fourth-quarter earnings Tuesday and its results will be a strong indication for an industry waiting to transition to a p...
8 hours ago
Microsoft partners with Cruise to commercialize self-driving vehicles

Microsoft partners with Cruise to commercialize self-driving vehicles

Microsoft Corp. is joining hands with Cruise, the self-driving subsidiary of General Motors., to help accelerate the commercialization of dr...
9 hours ago
Apple car may upset auto industry manufacturing model

Apple car may upset auto industry manufacturing model

Since last December, the Apple car project called Titan has been generating much interest with speculations surrounding design manufacturing...
2 days ago
Amazon opens two new logistics centers in Italy

Amazon opens two new logistics centers in Italy

Amazon will open two new logistics centers in Italy this year, investing over $278 million (230 million euros), the world’s largest online...
2 days ago
Fitch Ratings invests in AI startup to improve bank misconduct detection

Fitch Ratings invests in AI startup to improve bank misconduct detection

Fitch Ratings, a global leader in credit ratings and research, has inked a partnership with a French artificial intelligence startup as it e...
2 days ago
New Shepard Rocket launches Successful Test Liftoff

New Shepard Rocket launches Successful Test Liftoff

The New Shepard rocket by Blue Origin successfully conducted the test launch in the Texas testing site, successfully performing take-off and...
3 days ago