TransferWise launches money transfer service for businesses
Today sees the announcement of TransferWise for Business, a new service from the peer-to-peer currency transfer network. Aimed at SMEs, the service is marketed as ‘up to seven times cheaper’ than business banking alternatives, and allows business customers to send and receive payments to or from suppliers, customers and partners.
Thanks to the injection of £26m of funding, TransferWise has been able to expand into the lucrative SME market – noting that 44% of small and medium-sized businesses perform international money transfers at least once every six months, with many in the dark about how much it costs them to do so.
Third party research published by the startup suggested that sending £2000 overseas could cost businesses nearly £100 when they use traditional banks.
TransferWise VP Growth, Nilan Peiris, said: “SMEs make-up 99% of all UK businesses – they’re the engine of the UK economy. Despite the banks saying that they support these companies and their growth, the reality is that behind the scenes they’re happy to give SMEs a poor deal with hidden exchange rate charges… We’ve listened to what businesses want, and created a tailored, easy-to-use product for businesses with fast registration, easy reporting and dedicated business customer support teams. We’re excited to be able to offer SMEs a fairer, cheaper, faster alternative for international money transfer.”
Chris Ward, Research Manager at Mapa, comments, “Digital SME solutions are well behind retail offerings. SME customers are desperate for better digital services – according to a recent Accenture report, only 63% of SMEs are satisfied with their main bank’s offering, while 80% believe their bank could do more. If banks don’t enhance their propositions there’s plenty of scope for new players to enter and disrupt the sector. TransferWise is focused on a very specific function, but where else might FinTech startups find gaps they can fill?”
TransferWise is now worth around $1.1 billion, making it a true FinTech ‘unicorn’.
See more at https://transferwise.com/business.
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