10 Unique Business Models

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TransferWise


Launched: 2011

Founders: Kristo Kaarmann and Taavet Hinrikus

Point of view of from the customers, transferring cash with TransferWise aren't essentially completely different from typical cash transfers. The client chooses a recipient and a currency, the cash to be transferred is taken from his or her account, the company which transfers charges for the service, and a few time later, the recipient receives the payment within the chosen currency.

The distinction lies in how the payment is routed in TransferWise. Rather than transferring the sender's money on to the recipient, it's redirected to the recipient of the identical transfer moving into the alternative direction. Likewise, the recipient of the transfer receives a payment not from the sender initiating the transfer, however from the sender of the equivalent transfer. This method avoids expensive currency conversion and transfers crossing borders.

In 2012, the company's charges were €1 or 0.5% (whichever is larger) the same quantity within the customer's currency. Standard cash transfer using British banks typically charges significantly higher fees, or need minimum transfer sums and provides less competitive rates.



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