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Many new start-ups are vying for customer mindshare in the financial technology (fintech) space. Many of these challenger banks and money transfer providers seek to supplant legacy banks and corporations that have been around for decades. They attempt to do this by offering efficient, low-fee, and transparent mobile-first applications. They want to attract individual and business customers who travel frequently, live abroad, freelance, and sell products globally. Let’s review a couple of innovative fintechs and banking apps that regularly make headlines.
Founded in 2012, TransferGo is a convenient way to send money abroad for migrants and businesses. It offers same-day delivery and a guaranteed destination amount without any extra fees.
TransferGo focuses on helping customers create better lives for themselves and their families. It’s changing the face of finance to make it accessible to everyone, everywhere. Also, it uses a digital account-to-account model and prides itself on delivering high-quality money transfers with speed, ease, and excellent value. TransferGo has a Trustpilot score of 4.8. It’s available on Apple and Google Play app stores.
Founded in 2011, TransferWise is on a mission to make a positive, irreversible change in the world of finance. Built by and for people who live global lives, TransferWise makes sending money abroad fair, easy, and up to eight times cheaper than traditional banks and money transfer companies.
TransferWise focuses on people on every continent to help them live, travel, and work internationally. It wants to support a financial experience without borders to support instant, convenient, transparent, and eventually free money movement. TransferWise has a Trustpilot score of 4.6. It’s available on Apple and Google Play app stores.
TransferGo makes money by charging fixed and variable fees on money transfers.
TransferWise makes money by charging fixed and variable fees on money transfers. It also makes money as a third-party solution for financial companies, for example, N26 customers access TransferWise to send money.
Products & Services
TransferGo products and services include:
- Money transfer services
TransferWise products and services include:
- Money transfer services
- A global current account
- Debit card
TransferGo and TransferWise use mid-market rates. Both companies are transparent about their fees and calculators are available on their homepages. Customers don’t need to log in or create accounts to get estimates, unlike PayPal, for example.
Fees & Commissions
While TransferGo has a no-cost option, its other two delivery methods—express and standard—attract fees starting at £0.99. Also, express and standard delivery are subject to currency conversion fees of zero to 2.2 percent. All three delivery options aren’t available for every country/destination.
TransferWise uses a combination of variable and fixed rates, for example, 0.6 percent of the amount that’s converted plus 1.00 USD. Its fees differ for each country.
TransferGo customers can send money from mainly EU countries, which is fantastic for sending pounds and euros. People outside of the EU, however, can only receive money transfers, for example, Americans, Canadians, and Indians. TransferWise customers can send and receive a variety of currencies. Therefore, TransferWise supports a lot more currencies than TransferGo.
Single Currency Transactions
TransferGo supports single currency transactions. For example, someone in Germany can send euros to someone in France. TransferWise only supports currency conversions.
Both companies can process international money transfers within three days depending on the currencies involved.
TransferGo has no limits when using bank funds to send money. However, Visa and Mastercard debit and credit card payments (in GBP, EUR, PLN, NOK, SEK, and DKK) have a limit of 2,500.00 GBP* for its standard delivery option.
TransferWise customers can send up to a million per transfer depending on the currencies involved.
TransferGo’s transaction calculator provides fewer details compared to TransferWise. Also, TransferWise offers more user-friendly and complete help and frequently asked questions sections.
TransferGo’s real-time rates and free money transfers are excellent for customers. On the flip side, its express and standard delivery methods cost £0.99 to £2.99 plus conversion fees of up to 2.2 percent, which can get costly. Secondly, TransferGo is of very little use to people outside of Europe, where its operations are concentrated. To increase its value proposition and competitive edge, it must expand to support as many currencies as TransferWise and other major players.
Taking supported currencies, rates, and fees into account, TransferGo is competitive with its free option to send money globally. Otherwise, TransferWise is a robust alternative when accounting for fees. Alternatively, Revolut offers no-fee transactions at mid-market rates (weekend transactions and low-volume currencies may attract small fees).