Skype engineer’s currency-exchange site gives banks run for their money

.
Plastic-Parasite--5053

“The half-dozen Transferwise investors read like a who’s who of IT venture capitalists.
PayPal founder and Facebook’s first financier Peter Thiel is among them via his Valar Ventures company, as is Xavier Niel, the founder of French communications provider Free.”

Irked by high bank fees on international money transfers, two Estonian IT whizzes who helped engineer Skype and PayPal have hatched Transferwise, a global Internet platform that coordinates currency swaps between individuals.

“Hey, hidden fees. Your secret’s out,” says the Web site, which was founded by Taavet Hinrikus, 32, and partner Kristo Kaarmann, 33.
Transferwise has been giving banks a run for their money since its 2011 launch, even attracting applause from tycoon Richard Branson, who sings its praises as a low-cost business tool for start-ups.

“They are dramatically lowering the cost of transferring money overseas by effectively matching people and companies in different countries who want the opposite currency,” the Virgin billionaire said in a recent blog post.

The marriage of IT ingenuity and financial savvy also garnered a prestigious World Summit Award last year, a UN-backed prize for outstanding Web-based business innovations.

Transferwise offers international money transfers for a fee of just £1 (US$1.6) for all transfers under £200 and 0.5 percent for everything above — a 10th of what banks typically charge.
At that price, business is booming, with the company processing about £1 million per day.

While European rules specify that euro-to-euro transfers must be free of charge, banks fees on international money transfers between currencies range between 3 percent and 6 percent, with exchange rates that routinely favor banks.

The new platform boasts customers from across Europe and is most popular in Britain, France and Spain, mostly among working or retired expatriates, plus small and medium-sized businesses looking to cut operating costs.

It is also eyeing expansion in Asia, Africa and the US, offering services for the Indian rupee, South African rand as well as US, Australian, Hong Kong and Singapore dollars.

Hinrikus was Skype’s director of strategy until 2008, where he joined as the first employee. Kaarmann worked as a consultant for banks with Deloitte and PricewaterhouseCoopers before setting up Transferwise.

The idea took shape when Hinrikus found himself living in London and spending in pounds, but earning euros at his job with Skype at its headquarters in his native Estonia.

Kaarmann, meanwhile was earning pounds in London, but paying a mortgage for his home in the Estonian capital, Tallinn, in euros.

“We found that we had the opposite currency requirements, so we started to exchange it among ourselves at the actual mid-market rate — that’s the exchange rate you see in the papers, not the inflated rate you’ll be offered by your bank,” Hinrikus said.

“Soon we realized we had saved a fortune by not moving the money across borders and that perhaps it could be a big business idea. A few years later Transferwise was born,” he added.
A few algorithms later, they had come up with the programming to connect people with complementary currency needs.

Read More: Taipeitimes
_________________________________________________

About

Want Worldwide PEACE and Prosperity. We are the solution we have been searching for... Free People on Earth will solve our crisis and create an era of Creativity. Be Aware; Be Creative; Be Active; Be Free; and then Share it. LOVE & Wholeness AMOR y Paz

Tagged with: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in Freedom-Expressed

Please Contribute a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 373 other followers

The Worldwide Awakening
Peaceful Awareness & Knowledge Based TransitionSeptember 11th, 2017
Exercise freedom and creativity for all Earth’s inhabitants to explore ready breakthroughs in Self Organizing Communities, economics, and technology. This is a D.I.Y. project
State Sponsored Terror
The Big Day ReportMarch 30th, 2018
Institutions of crime Big days have come, gone, and come again (Manipulations: Market Exchanges crash, wars, government Elections, and Taxation). Search for what is hidden and for what is not spoken. What secrets are hidden in Antarctica? Be Aware of the next big Day for fraudulent institutions.
RonMamita
Peace Today

Peace Today

RonMamita’s Blog
February 2014
S M T W T F S
« Jan   Mar »
 1
2345678
9101112131415
16171819202122
232425262728  
All posts here
Whole-Community
Audio coming soon!
%d bloggers like this: