17 November 2017
visit www.avoka.com

TransferWise rounds up A-list investors as it bids to undercut banks in currency exchange

18 April 2012  |  6101 views  |  0 cash

UK currency conversion start-up TransferWise, billed as a 'skype for currency exchange", has raised $1.3 million in seed funding from an A-list team of angel investors.

Using a peer-to-peer model to get the best rate for consumers, the company claims to have already saved users more than £0.5 million since its launch in January 2011.

The latest round of funding has been led by IA Ventures, Index Ventures, Max Levchin (co-founder of PayPal) and a group of strategic angels, including the people behind hot financial start-ups such as Simple.com, Wonga, and Betfair.

TransferWise essentially matches transfers in one currency to those in another, and sends the money from a bank account in the host country to the target account. The company uses the mid-market interbank rate, and charges a low flat fee on small transfers (just £1 on transfers up to £300), to undercut the banks and traditional currency exchange shops.

Taavet Hinrikus, a former Skype alumni and co-founder of TransferWise, says: "We are using the power of technology and the crowd to disrupt the industry and cut out the middlemen, and many of the middling fees, from a service that is dominated by banks."

He says users currently taking advantage of the service are workers employed overseas, international students, pensioners now living abroad and a growing number of small-to medium-sized businesses.

Kima Ventures, Seedcamp and The Accelerator Group also participated in the funding.

Roger Ehrenberg, managing partner at IA Ventures who will join TransferWise's board of directors, says: "TransferWise is moving the money transfer market to the 21st century at a time when many banks and traditional financial services firms are forgetting innovation and customer experience."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

The Currency Cloud raises $4m

The Currency Cloud raises $4m

14 March 2012  |  5898 views  |  1 comments
UK banks scrap currency fees

UK banks scrap currency fees

20 December 2011  |  8554 views  |  0 comments
Ven digital currency to be displayed on Thomson Reuters terminal network

Ven digital currency to be displayed on Thomson Reuters terminal network

21 September 2011  |  9715 views  |  0 comments
Virtual currency used for commodity trade

Virtual currency used for commodity trade

15 April 2011  |  16996 views  |  0 comments | 1 tweets
Absa rolls out POS currency converter for World Cup

Absa rolls out POS currency converter for World Cup

14 April 2010  |  9588 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.fivedegrees.nlvisit www.aciworldwide.com

Top topics

Most viewed Most shared
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
11244 views comments | 15 tweets | 28 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
9509 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
8265 views comments | 11 tweets | 35 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
7257 views comments | 26 tweets | 37 linkedin
Visa bids to bring contactless transit payments to the worldVisa bids to bring contactless transit pay...
7132 views comments | 16 tweets | 29 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job