Transferwise is a great service, I use it myself. They even give you a volume discount if you ask for it.
But what really surprises me is that it got to where it is at all. If you look at it, their business model is not revolutionary. Their prices are not cheaper than for example UKForex (OzForex), who provide the exact same service, and were around years before.
The business is simply a click interface for exchanging money; you send in your currency, and they send in the agreed amount to the other side. The price difference between these shops is minimal.
It could not be simpler. I've traded currencies as a professional, there's not a whole lot of other steps behind the scenes.
But I doubt most people have heard of UKForex. Transferwise however are on billboards everywhere, acting as though they invented the idea of swapping one currency for another. And acting as though you are cutting out the middle man, which you are not. You still need a bank.
Well played to them though, it seems they've used some of that startup hype attitude to get themselves a nice little business.
The first-run experience of Transferwise blows UKForex out of the water.
If I want to convert 1000 EUR to USD, the number one thing I care about is how many USD I will get for my EUR.
The front page of Transferwise has a giant input right at the top of the page that tells me exactly how many USD I will get, and tells me that rate is guaranteed for 48 hours.
The front page of UKForex has a much smaller input, and it's "market rate" - if I want to find out how many USD I will actually get, I have to register and create an account.
This is just one example, but it speaks to my whole experience of Transferwise vs. other foreign exchange providers. The user experience is best-in-class.
The TV adverts and billboards where also particularly good, involving people spitting out their cup of tea in surprise when they realised they could save money with transfer wise.
> They even give you a volume discount if you ask for it.
Just contact support? How much volume do they look for?
I'm struggling moving USD -> GBP, hitting the daily ACH limits & frustrated that the creaky US banking system doesn't have a better interbank transfer system than wiring funds for tens of dollars a pop (and presenting a physical form).
But what really surprises me is that it got to where it is at all. If you look at it, their business model is not revolutionary. Their prices are not cheaper than for example UKForex (OzForex), who provide the exact same service, and were around years before.
The business is simply a click interface for exchanging money; you send in your currency, and they send in the agreed amount to the other side. The price difference between these shops is minimal.
It could not be simpler. I've traded currencies as a professional, there's not a whole lot of other steps behind the scenes.
But I doubt most people have heard of UKForex. Transferwise however are on billboards everywhere, acting as though they invented the idea of swapping one currency for another. And acting as though you are cutting out the middle man, which you are not. You still need a bank.
Well played to them though, it seems they've used some of that startup hype attitude to get themselves a nice little business.