Transferwise, the online money transfer service, has now issued over a million currency cards in partnership with Mastercard. It’s remarkable really seeing as Transferwise only started in 2010 as a peer to peer currency transfer service.
Transferwise say they want their multi-currency account to replace expensive old fashioned bank accounts for expats, freelancers and travellers. The only problem with that is that old fashioned banks are actually quite good at providing this service already. All they need to do is reduce their costs and Transferwise will be left without a USP. So far, the only this Transferwise does any different from the established banks is do it cheaper – not nessecily easier.
Kristo Käärmann, CEO and co-founder of TransferWise.
“We’re making it faster, cheaper and easier to move money around the world. To date over one million debit cards have been issued to people wanting to make the most of everything our borderless account has to offer. As we think about the next phase in our international expansion, we want to ensure this process stays just as convenient whether you need a debit card in the UK or Japan. Building upon our partnership with Mastercard is important in maintaining that high level of convenience around the world,”
However, the easiest way to transfer small amounts of money abroad through an international money transfer is by using your bank account. The problem is, is that it is very expensive. Mainly because banks have to do a certain amount of due diligence for international transfers. If you want to send a large amount of money abroad you definitely need a currency broker instead.
Fintech’s have managed to offer really cheap services by streamlining the onboarding process and having loads of investment for marketing. As with Monzo and Revolut who are struggling now the marketing taps have been turned off it will be interesting to see how Transferwise does in the longterm.
Andrea Scerch, President of Processing Services, Mastercard said:
“We are proud to be expanding our relationship with TransferWise, having enjoyed a solid partnership over the past three years. Broadening TransferWise’s global reach will enable millions more people around the world to benefit from Mastercard’s worldwide acceptance footprint and TransferWise’s innovative multi-currency payment solutions.”