is an online money transfer service. TransferWise offers transfers at the mid-market rate, i.e. the rate that you would find on Google. Other banks and transfer services usually offer a higher rate and make a profit out of it. TransferWise uses smart matching to match your transaction to another one that is happening the other way round. This avoid currency conversion and enables them to make a profit even at a mid market rate. In addition to that, they have a network of local banks around the world to facilitate these transactions locally.
This is a free-of-charge account that users can use to hold, receive and send money in different currencies. This also works on the network of local bank accounts around the world.
How they make money
Fee on transaction: The markup that they set on each transaction dependent on the amount being transferred.
Borderless Account: Even though the account itself is free-of-charge, the transactions are subject to a fee.
TransferWise for business: Companies can use their account to accept and make payments for their global business. This eliminates the hassle for managing different currencies.
TransferWise for banks: They provide an API for banks to use the TransferWise network to make payments, enabling them to provide cheap rates and faster money transfers.