Start-up launches international bank account
All the news and analysis for ambitious company owners
A FAST-GROWING money-sending business known for its provocative adverts attacking banks has launched an account for firms to manage cash internationally.
Transferwise, a fintech ‘unicorn’ – a start-up valued at more than $1billion – said the new Borderless product is like having a local account in any country ‘but without the hassle’, with no set-up fees or monthly charges. The business has just become profitable after six years.
It said that there was a small transparent charge when moving money across currencies and all transfers will be made at the real midmarket exchange rate. Firms will be able to keep money in 15 currencies and have local account numbers for the UK, the Continent and the US.
Local account numbers for Australia, Canada and other countries will be added later this year.
Co-founder Taavet Hinrikus said: ‘Business banking is notoriously expensive and difficult to set up and manage. Even alternatives like PayPal are expensive for small businesses. It’s an account that’s not constrained by country or currencies.’
Jemima Garthwaite, who founded her advertising agency called This Here four years ago, said: ‘We used to receive money from European clients, pay international freelancers and European suppliers in bulk all from a British account. The bank fees were always extortionate.’
She said a Borderless account would give firms more control and reduce the administrative burden of managing international finances as well as the risk of taking on European clients.