A startup by Skype alums
If someone in Britain, say, wants to transfer money to his relative in Spain, he will put the cash in Transferwise’s British account. The algorithm then spots someone in Spain who wants to make a transfer in the other direction, and who deposits funds in the firm’s Spanish account. Rather than crossing borders to reach its destination, money can simply be paid out of the relevant national account.
In 2011, its first year of operation, Transferwise transferred £10m ($16m); it breached the £50m mark in December. It charges a miserly fee of £1 for making transfers up to £300, and a variable charge for transferring larger amounts. Its 10,000-odd customers are spread across Britain, Switzerland, Poland, Sweden and Denmark. They are mostly young working professionals who either have a mortgage to pay or a family to support back home. Retirees with a second home abroad and startups with foreign subsidiaries also use the site.