By Mohammed Waseem
UK based money transfer company, TransferWise has launched a mobile app for Android which enables users to transfer money right from their smartphones to anywhere in the world within minutes. Started in 2011, they have been doing pretty well offering good exchange rates and low fees.
They use real currency exchange rates and are among the fastest and the cheapest ways to send money abroad. They claim that their fees are 10 times lower than what banks charge. They charge £1 for all transfers of amounts lesser than £200 and 0.5% of the amount for all transfers of higher amounts. USD transfers are charged at $15 for amounts up to $1500 and 1% of the amount for amounts between $1500 and $5000. For anything above that, the charge is 0.7% of the amount.
They compete with banks for money transfer, but what about money transfers companies? Well, as far as fees are concerned, they are better than many money transfer services. They are also better in exchange rates because money transfer companies, apart from the fee they charge, make money from exchange rates as well; they provide a rate lower than the market, keeping the difference for themselves. Unlike this, TransferWise offers real time market rates for the transfers.
Having said all this, their concept may not work well everywhere due to the way they operate. Their service may work well between countries which transfer roughly equal amounts to each other and may have lesser significance and appeal for pairs of countries where the amounts transferred between each other don’t match. I have discussed more about this here.
The mobile app is available for Android and iOS and is free to download. Alternatively, senders can use their online service on their website.