TransferWise is an online money transfer company, which allows you to transfer money worldwide up to 8 times cheaper than a regular bank. TransferWise technology is part of a peer-to-peer system. This means that if for example, someone wants to convert their dollars to euros, TransferWise will pair them with someone who wants to convert their euros to dollars. This way cheaper exchange rates are achieved for both parties.

Since its creation in 2011, TransferWise has helped over one million customers worldwide. Some of the founders of TransferWise are also responsible for Skype, the most popular audiovisual call making software, which was recently bought by Microsoft. In the previous years, this Fintech company has transferred more than five billion dollars.

Defining Fintech

Fintech describes the developing crossover between financial services and technology. It is an umbrella term that can refer to start-ups, larger technology companies or even legacy providers. Although it is sometimes difficult to understand where technology ends and financial services begin. Fintech, referring to financial technology, is a favourite word among the media but is not always used correctly.

Recent Fintech reviews suggest that start-ups are more about using innovative technology to offer mainstream financial services at lower costs, whereas larger technology companies are more interested in acquiring work with smaller start-ups by providing various payment tools. All these companies are what we widely describe as Fintech.

Why is TransferWise a Fintech company?

Whereas banks easily hide fees behind ‘exchange rates’ without you even knowing, TransferWise is entirely transparent. On their website, you will find a currency exchange calculator. The only thing you have to do is to enter the amount you plan on transferring, the two currencies, as well as the origin and destination of the money. The calculator will offer you a guaranteed rate, which is usually the most cost-effective along with the standard TransferWise fee and the amount of money you saved by not using another money transfer service. TransferWise uses the official mid-market rate which is updated on a daily basis.

Fintech reviews have shown that TransferWise exchange rates are consistently lower compared to banks or other money exchange services. Most transfers will take as little as a day, but sometimes may take between 1–4 business days to process completely.