We’re inclined to think of fintech as a B2C industry, but many providers have branched out into B2B as well, and TransferWise is no exception. The entrepreneurs who started it as a B2C company needed to solve the problem of expensive, cross-border bank transfers.
Right now, the offering of TransferWise is that it uses the real exchange rate with “no sneaky hidden charges”. The fintech platform has solutions for personal and business use. The company since grew to reach 8 million customers around the world and is showing no signs of slowing down.
TransferWise’s business account allows you to pay invoices and people abroad in multiple currencies and thus expand your vendor base and save on costs. It also works the other way round and you can accept payments for the work done for global clients – whether you’re a freelancer or working for a large corporation.
The recipient also doesn’t need to have a TransferWise account. Just remember that when you’re sending money on your business’ behalf, it must come from your business bank account. However, there are also some restrictions on certain currencies in which business accounts can operate due to local regulations. You should also comply with the limits placed on the amounts you can transfer.
TransferWise also offers a Business Debit Card. It’s a Mastercard that you can use to pay your business expenses. The company has also recently signed a global partnership agreement with Visa. The deal allows them to connect to Visa’s global payment processing network. No doubt it would increase their business offerings soon.
TransferWise has accounts all over the world. The technology allows sending different currencies from an account from one country into another. The money doesn’t actually cross the borders, since you’re paying to your local account in your local currency. Meanwhile, the account in the recipient country sends an equal amount of money to the recipient country’s currency. This way, you dodge the risk of fluctuating exchange rates.
TransferPay is definitely a good alternative, especially for small to mid-range businesses that have employees around the world. Creating an account is free and you can even hold 50+ currency balances, but with certain exceptions. You can also receive certain currencies without additional payment. The app is also available for iOS and Android.
YouTube: How TransferWise Works | Send Money Abroad
Photo source: The images used are owned by TransferWise and have been provided for press usage.
Sources: Steve O’Hear (TechCrunch) / Luisa Beltran (Barron’s) / Nicholas Megaw (Financial Times)