London-based fintech company Transferwise has reportedly created a “borderless” bank account that is to work across countries without any transfer fee
London-based fintech company Transferwise has reportedly created a “borderless” bank account that is to work across countries without any transfer fee charges.
The project tries to help money be sent around the world in a more efficient and cheap way. In this way, freelancers and businesses will be able to store money from various currencies in one place.
“Business banking is notoriously expensive and difficult to set up and manage, even alternatives like PayPal are expensive for small businesses.”, as Taavet Hinrikus, CEO and co-founder of Transferwise said in an interview with Wired.
“So we’ve created the Borderless account. It’s an account that’s not constrained by country or currencies and gives businesses more freedom and control.”, he elaborated.
The Borderless accounts may be used by clients in the UK and Europe and allows them to keep money in 15 different currencies. Borderless accounts are currently unavailable in the USA, Australia and Canada. Still, they will be introduced in these countries this year.
As the company stated, there are no setup fees and monthly charges. Moreover, Wired emphasized that it doesn`t cost anything to receive a payment except for a “small transparent charge” when money is transferred across countries.
This is not the first move of Transferwise. In February, the company launched its Facebook Messenger bot. The service makes it possible for users to send money in the UK, the USA, Canada, Australia and Europe.
It remains to be seen how such services will affect the banking sector as we know it today.