TransfeWise is an online money transfer service allowing private individuals and businesses to send money abroad without hidden charges. The company lets expats, foreign students and businesses move money globally.
The concept was to match transfers with other people and then have small commission while using inter-bank mid exchange rate, unlike traditional currency transfers where there are buy and sell rates and the broker takes the difference between the two.
TransferWise has announced that they are partnering with Alipay, an online payment giant. The partnership shows a major step for TransferWise with its expansion plans. The partnership enables TransferWise to operate and offer its services in China.
“Alipay functions as the primary payment method for more than a billion people in China and we are excited to be bringing instant international transfers to the fingertips of Alipay’s users,” said Kristo Kaarman, co-founder and Chief Executive of TransferWise.
According to the World Bank, China is currently the most expensive major currency corridor, with the average cost of sending $200 (£140) from the UK to China standing at a staggering US $19.6 (£13.70) or 9.8%.
Under the partnership, TransferWise said that they are charging 1.5% for transfer with a delivery time of 1 to 3 days. Anybody with UnionPay account will be able to receive transfers.