TransferWise eliminates high bank fees from foreign exchanges by matching its users based on the currency they have and require. A simple, secure swap then takes place.
TransferWise is an online money transfer service, which allows you to transfer money up to 89 per cent cheaper than with the bank. The technology is based on a peer-to-peer system. If someone wants to convert their pounds to euros, TransferWise’s technology finds someone who wants to transfer money in the opposite direction (euros into pounds).
The system automatically matches the currency flows at the real mid-market exchange rate (as you would find in newspapers or at xe.com) and then pays out from the local euro or pound account, meaning the money never actually moves across borders. Doing things this way means customers can avoid traditional banking fees altogether and you don’t lose money by transferring at an unfair rate.
Making transfers is easy. Go to the TransferWise website, type in your and the recipient’s details and how much you want to transfer. You can then either type in your debit card details or send the money to TransferWise from your online bank account. You will receive a confirmation email when the money has been received and another when it’s been paid to the recipient. Most transfers happen the same day – it normally takes a bank twice as long.