When Estonians Kristo Käärmann and Taavet Hinrikus were working and living in London in 2010, they realized they were losing a lot of time and money each month going through the traditional exchange process of bank accounts in Europe. As the employee at Skype, Taavet was paid in Euros but needed to pay his UK bills with pounds. Meanwhile, Kristo's job at Deloitte was paying him pounds when he needed Euros to cover his mortgage back in Estonia. From this common problem, the simple genius of TransferWise was developed.
How TransferWise Works
Kristo and Taavet realized they could bypass the pricey fees of one international transaction by completing two local ones. Each month, they would look up the actual exchange rate so Taavet could deposit the equivalent amount of euros into Kristo's Estonian bank account as Kristo would deposit in pounds to Taavet's UK bank.
Today TransferWise uses the same approach to save users millions of dollars every day. Processing transfers between over 70 countries in 40+ currencies, customers can truly bank without borders. Their free business and personal borderless accounts set users up with their own UK, Eurozone, Australian, New Zealand, and US bank details with no local address needed.
How TransferWise Is Different
When compared to a traditional bank account, TransferWise offers a number of advantages:
- Save an average of 80% over UK banks
- Transaction fees are clear and upfront with no hidden markups
- Same-day payments on major routes from the UK and Europe
Is It Safe
TransferWise follows the authorized Electronic Money Institution laws and regulations of each respective country it operates in (i.e. the Financial Conduct Authority in the UK). By law, they are required to keep customer money safe in a low-risk financial institution like Barclays in Europe and Wells Fargo in the US.
In the past 9 years, some 6 million customers have used TransferWise to move over $4 billion dollars each month. With investors like Richard Branson and PayPal founders Max Levchin and Peter Thiel, TransferWise has become a trusted institution for sending money abroad.
TransferWise has a Business account for companies looking to open an IBAN account to transact - make payments, receive payments, etc. TransferWise does not work with high-risk industries.
To make bank account opening in Europe even easier, BankApply will match you with suitable banks and institutions like TransferWise and complete the account opening process on your behalf. Register today to increase your chances of getting a bank account in Europe by having us approach the right banks for you.