How does Transferwise work? An instruction

Receive and send money quickly and easily with Transferwise. In this practical tip, we explain exactly how Transferwise works and introduce you to the provider.

How does Transferwise work? Easily explained

If you want to transfer money cheaply and quickly, using Transferwise is an option.

• Unlike other providers, Transferwise is completely online. There are no branches where cash can be deposited or withdrawn. The sender has to register and transfers the money from his own account to Transferwise. The profile must also be verified.
• Transferwise doesn't really send the money. Rather, the system is based on the crowd - the swarm - similar to crowdsourcing.
• The system is as simple as it is ingenious: For example, if you want to send money from Germany to the USA, Transferwise does not really send the money on the trip. Instead, the provider is looking for someone among its customers who wants to transfer approximately the same amount from the United States somewhere. The recipient of the transfer from Germany will then receive this money.
• This saves costs: expensive transfers between countries are eliminated, as are currency conversions. The transfers are correspondingly cheap compared to other providers.
• The company is still under construction, so Transferwise only works in countries of the European Monetary Union, Switzerland, Great Britain, the USA, Canada and Japan.
• However, Transferwise could revolutionize the way money transfers are made. Large investors are people who have already made a lot of money through their financial commitment to companies like Facebook or PayPal.

Moneygram is an alternative to Transferwise. You can find out how this works in the next practical tip.