Name: Insights: TransferWise Cuts Cost and Time of International Money Transfers
Uploaded: 2020-03-10
Duration: 1 min 51 s
Description: TransferWise cofounder and chairman Taavet Hinrikus wanted to cut out the middlemen. (November 2018)

[MUSIC PLAYING] SPEAKER 1: We really started TransferWise because my myself and my co-founder, Christa, we were sending money between Estonia and UK, and we realized that whenever we go to a bank, we get a horrible service. It's slow, expensive, and really inconvenient to you, stand in line, wait days for money to arrive. So we thought about, wait, it's the 21st century, emails go instantaneously, there might be something we can do to have the same experience with money. So we realized that in order to do it, we really have to go and build out our own infrastructure. So in every country, we tried to connect to the payment network. So we take money from a customer. Really quickly for a low cost, we're able to convert it and then pay out to the recipient. And if we're lucky, we can do it in real time in many countries we're in. SPEAKER 2: How long does it usually take for the money to arrive? SPEAKER 1: You can send money from Australia to UK, it'll be there in 15 seconds. SPEAKER 2: Your main competitors are Western Union and the banks of the world, but you only charge 1% or less in fees, how are you able to keep your fees so much lower than these others? SPEAKER 1: So really it comes down to a few things. It comes down to being online only. So we don't have a branch network to support. It's only on your smartphone or computer, so that makes things easier for us. Second, we're really focused on being a technology company, so we're using technology to make things smoother and faster. And being started only seven years ago means we're doing things in a very modern way compared to a bank, which may have systems dating back tens and tens of years. And lastly, being straightly connected in the payment systems in every country means that we don't pay fees to any intermediaries that result in us being able to offer the lowest price, which really allows us to offer these services and run a profitable business. 

Insights: TransferWise Cuts Cost and Time of International Money Transfers

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TransferWise Cuts Cost and Time of Money Transfers

TransferWise cofounder and chairman Taavet Hinrikus wanted to cut out the middlemen. (November 2018)

way Transferwise because myself and my co founder, Crystal, we were sending money between Estonia and you can realize that you never go to a bank. We get the horrible service. It's slow, expensive and really inconvenient to you standing, lying in wait day for money to arrive. So we thought about Wait, it's a 21st century e mails going spontaneously. Must be something we can do to have the same experience with money. So we realized that in order to do it really have to go and build out our own infrastructure. So in every country we try to connect the payment network. So we take money from a customer really quickly for low cost. We're able to convert it and pay out to the recipient, you know? And if and if we're lucky, we can do it in real time in many countries were in How long does it usually take for the money to arrive? You can send money from Australia to UK. It'll be there in 15 seconds. Your main competitors are Western Union and the banks of the world. But you only charge ah 1% or less in fees. How are you able to keep your fees so much lower than these others. Really? It comes down to a few things. It comes down to being online only. So we don't have a brunch central to support its only on your smartphone or a computer. So that makes you here for us. Second in a really focused on being a technology company. So we're using technology to make things smoother and faster. And being started only seven years ago means we're doing things in a very modern way compared to a bank which may have systems dating back tens and tens of years. And lastly, you know, being being straightly connected in the payment system. And every country means that we don't pay fee Sonny Intermediary that kind of result in us being girls offer the lowest price, which really allows us to offer this service ship and run a profitable business.