International money transfer service, TransferWise has announced that it has broken a new milestone. According to the company, it is now handling £500 ($760) million per month and in the process, saving customers a collective sum of £22 ($33.5) million in fees over more traditional money transfer services. Unlike traditional services, the company side-steps bank fees by performing peer-to-peer currency exchanges at the mid-market rate and pose a credible threat to established transfer services like Western Union and traditional banks.
Commenting on the news, founder Taavet Hinrikus in an interview with BBC Radio 4’s Today programme said,
“We transfer tens of millions of customer money every day and we have approximately two per cent UK market share of the international money transfer business. This figure is only going to grow as customers become fed up with the traditional banking sector and look for fairer alternatives like TransferWise.”
With significant investment backing including a Series C round that raised $58 million earlier this year, the company hopes to continue its rapid expansion and hopes to tap into the lucrative US and developing country economies. TransferWise represents just one of the emerging money transfer services to emerge in Europe, but has the funding/monthly volume to become a dominant force around the world.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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