FinTech profile: TransferWise
was established in 2010, based around a vision of making international money transfers cheap, fair and simple. However, as is the case with many pioneering businesses, there is more to the story than that.
Wanting to overhaul the international money transfers system, founders Kristo Käärmann and Taavet Hinrikus came up with the concept for the businesses after realising they were losing out to fees when transferring money home, to Estonia, from the UK.
The answer to their problem became Transferwise, a concept built around three core beliefs for sending money:
- that it should be low cost and fair - Transferwise uses only one fair exchange rate and gives one upfront fee
- that it should be simple - everyone at the company is dedicated to a process that it claims is simple, watertight and offers "bank-level security, minus the banks"
- that it should be fast - log in, sign up and send. That's the premise behind Transferwise's process, with the company adding that 'most' transfers happen the same day
Transferwise works off of the bank transfer rate of the day, offering the best possible rate across 750 currencies. When users can send a payment, they receive the real exchange rate and low fee already mentioned. A business account option also exists, which allows companies to send, spend and receive in multiple currencies.
The company also offers a Borderless Account to complement existing services. This multi-currency account is pitched at travellers, expats and freelancers, for whom it allows spending in any currency and the sending and receiving of money for free from the user's own foreign currency account. This, it claims, can be done "on average 8x cheaper than leading UK banks".
this week that Transferwise’s annual revenue totalled to £302.6mn in the financial year ending in March 2020. This is up nearly 70% in comparison to last year. Another notable milestone for the company was its most recent back in July.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG