Today, UK based money transfer service; TransferWise launched a new debit card in the US that will work in multiple currencies at once. It claims to be the primary FinTech to provide customers multi-country banking. This TransferWise debit MasterCard enables US-based customers to spend money overseas the same as locals.
This debit card is geared towards consumers’ who shop, travel, or else send money internationally and also for those freelancers working for overseas companies as well as small business owners who pay international suppliers. Even a business card will be launched later this year, along with its expansion into the Asia Pacific is also on its radar.
TransferWise is expecting that its new debit card will be embraced in the US in large segment owing to its low fees as company charges from 0.45 percent to 3 percent to convert currencies as well as 0.2 percent to add money to account all the way through direct debit.
There are no other fees as customers will get free international bank details for the UK, US along with Europe, Australia, and New Zealand. It means exclusive account as well as routing numbers.
The debit card saves customers money by automatically selecting the cheapest alternative from accessible balances at the time when there is not enough currency in the account. According to TransferWise, its fees are much lower in comparison to other traditional banks.
As per the research commissioned by TransferWise sending as well as spending money abroad is four times cheaper via its debit card. It also claims that it is about 12 times cheaper to send money internationally in comparison to a bank account.
Co-founder and Chairman of TransferWise, Taavet Hinrikus, supposed that it is able to charge lower fees as it does not have the overhead linked with branches and construct the company from the ground up along with advanced technologies.
He says, ‘ we are not greedy, and we focus on offering the service in a low-cost manner and also running a profitable business.’ He added that ‘ we have done many price drops in the past two years to reach the lower limit for consumers .’
However, this strategy worked well in the UK since debit card debut in the UK, as well as EU customers, have deposited over 2.5 billion dollars in their accounts and on the other hand spend more than a half billion dollars on their debit cards.
Though TransferWise is not a single FinTech assisting consumers in handling funds internationally as it faces competition with the wire transfer business from Remitly, Veem and many others.
TransferWise was created eight years ago to offer customers a lower cost as well as a more transparent international money transfer service. Its prior customers comprised of immigrants who were sent as well as receiving money across borders. From that time, their business is booming and has amassed a valuation of 3.5 billion dollars and is at present Europe’s most valuable FinTech.
Taavet Hinrikus, says that ‘ TransferWise is working to remove all kinds of barriers in terms of finance and keeping people from living, traveling, as well as working across borders.’ This TransferWise debit Card works as the time you sign up for a free card, load it up along with cash via the TransferWise mobile app. Here you can convert your American dollars to the currency you need abroad.
The time you arrive at your destination the debit card acts the same as a local bank account comprising unique account along with routing numbers in Europe and few other countries where no travel taxed required.
However, TransferWise will charge a variable fee for every time you convert money to different currency also at the time of depositing money too. It will show you the exact cost of every conversion before you click confirm button; indeed, it will be cheaper also there are no monthly fees or else maintenance account balances.
Date: June 28, 2019