Overseas financial transactions are often extremely handy, but transferring cash from one account to another can be very tedious and troublesome. If you are like most people, you have probably tried few ways in an attempt to find the perfect solution for your money transfer woes.
The most popular options are probably PayPal and bank transfers. These two methods have great advantages but their main weakness is clear. The charges for transferring money via these channels are high, usually about 3% to 5%
So, if you are looking for new technology to transfer money overseas, you should definitely consider TransferWise. This peer-to-peer platform has grown in popularity since its inception in 2011.
These Savings Aren't To Be Sniffed At!
Generally, the method of money transfer appears similar to other conventional methods.
However, the unique approach and technology used in the process presents advantages that are not found elsewhere.
Here is a brief discussion on TransferWise to help you understand the money transfer platform.
Understanding TransferWise (and Why It’s So Cheap)
When you are sending money using the standard transfer processes, you will select a recipient of cash and identify the type of currency that they should receive. The money will be taken from your account along with the service charges by the bank or other financial institution.
The bank will then send the money in the appropriate currency to the recipient. This is expensive because the bank will need to convert your currency before they can transfer money overseas. Moreover, there are charges attached to money transfer across borders.
TransferWise is designed to eliminate these two detriments and provide significant savings for both the sender and the recipient. When you choose your recipient for money transfer, the cash is not taken by the back, converted and then sent.
Instead, the money is redirected to a recipient within your region expecting a transfer from elsewhere. In the same way, your recipient will obtain redirected cash from a sender within their region. This eliminates the expenses such as conversion fees and large transfer charges for you and your recipient or sender.
Currencies and Minimum Transfer
The headquarters of TransferWise is established in London, but numerous international clients use this service. Therefore, there are multiple currencies accepted by the money transfer platform. The total currencies offered are about thirty eight. The minimum transfer is one pound in UK and one dollar for US, Australia and Canada.
Is TransferWise Secure?
The world is not a safe place, and there are numerous concerns that any diligent person must consider before signing up for financial services. TransferWise uses basic bank transfer systems; the design is only different in that it limits transfer of money across borders.
Also, the company has great credibility on business platforms and from past clients. Moreover, the foundation of the technology is built by some of the most brilliant minds and backed by some popular businesspeople.
Who's Behind It?
The founders of TransferWise are Kristo Kaarmann, a financial consultant and Taavet Hinrikus, also known as Skype’s first employee. The company has numerous great investors including Richard Branson and Peter Thiel, a true business wizard. You should also note that the TransferWise client rating is about 9.5/10, according to the general reviews.
- TransferWise is quite inexpensive, especially when compared to alternatives like bank transfers
- The account is relatively easy to set up for use.
- You will have access to multiple currencies and you can send almost any amount of money.
- The exchange rate for your currency is always current.
- You can choose make payment through any common options, including cash, cards and smart apps.
Could Be Better
- All currencies are not available and this can be a significant limitation.
- There may be delays in transfer if the sums of money cannot be matched on both ends.
There is no perfect method that can allow you to transfer money overseas, at least not yet. However, the TransferWise option will give you great advantages in terms of financial charges, security and general convenience.