TransferWise, the P2P international money transfer platform, has opened up transfers to South Korea.
Until recently, banks and brokers were the only option for consumers needing to send money to the country. But now, thanks to recent changes in regulation, TransferWise has partnered with local firm, PayGate, to bring better, fairer international money transfer to South Korea.
Instead of sending the money in Korean Won, banks and brokers send customers’ money in GBP or USD for example, and the receiving bank makes the conversion. This leaves consumers paying two rounds of fees and maybe even two rounds of conversion - and usually they haven’t even been told they’re being charged in this way. But TransferWise sends the money in Korean Won, which means no receiving bank mark-up. The process is also completely transparent. TransferWise charges 1.5% for transfers with a delivery time of the same or next day.
Taavet Hinrikus, CEO and co-founder of TransferWise, said:
“Until recently, there was no alternative to banks and brokers when people wanted to send money to South Korea. We’ve heard from consumers that the process was slow and outrageously expensive so we’re hugely excited to launch the route on TransferWise. It’s going to make a huge difference to the seven million Koreans living, working and studying overseas.
“The steps that the government in South Korea is taking to open up the financial services sector is good news for consumers. There will be more choice and better, fairer services to choose from.”
So Yeong Park, CEO and co-founder of PayGate, said:
“It is so glad that we now can serve customers with our 18 years of diverse experience as a Payment Service Provider, for them to make much cheaper, faster, and safer international money transfers to Korea.
“For the last few years PayGate has been working hard to grow the Korean Fintech Industry and our recent partnership with TransferWise is the result of these efforts. Customers in Korea will see how this alternative finance can positively affect their daily lives.”
People use TransferWise to transfer more than £500 million globally every month, saving themselves more than £22 million a month in unfair fees and charges.