TransferWise is an online platform that helps users send, get paid, and spend their money internationally. TransferWise also allows users to transfer their funds online through different currencies, currently supporting over 750 currency routes.
However, that’s not all. The platform also enables users to use its debit card, which it provides in association with MasterCard.
The company started in 2010 when its founders Kristo Käärmann and Taavet Hinrikus needed a solution for international money transfers. Both its founders were suffering from very high bank charges from transferring money from their local currency to GBP and vice versa.
Therefore, they started a company to provide users with a much easier and inexpensive solution when it comes to transferring funds online.
The solution they came up with for making transfers inexpensive was to match users’ transfer with other users with similar transfer with the opposite currency.
For example, it matches a USD to GBP transfer with a GBP to USD transfer. It allowed the platform to transfer funds by exchanging the transaction and avoiding border and bank transfer costs. This solution earned TransferWise a lot of praise and accolades.
It is critical to understand the beliefs and goals of the company for a better understanding of the company and its activities. These are a part of the company’s vision, mission, objectives, and business model.
The vision of a company defines its desired future position. For TransferWise, the initial vision was “making international money transfers cheap, fair, and simple”. As mentioned above, it all started with the personal experience of the founders of the company.
TransferWise’s vision describes many terms which define the company even better. First of all, the company focuses on international money transfers. While it does provide users with the ability to transfer funds domestically, the focus remains on international transfers. That is also an area in which the company has the expertise and a unique product.
Similarly, the vision of the company defines three critical aspects or achievements for the business. These include making transfer cheap, fair and simple.
Through its years in the market, TransferWise has almost achieved that. By matching users’ payments with other users of the opposite side and avoiding bank transfers, the company has reduced the charges on transfer. It, in turn, has made international payments simpler and fairer for users.
The mission of a company shows its business, objectives, and its approach to reach those objectives. The mission of a company is closely related to both its vision. The official mission of TransferWise on its websites reads the following.
“Money without borders – instant, convenient, transparent and eventually free. We’re powering money for people and businesses: to pay, to get paid, to spend, in any currency, wherever you are, whatever you’re doing.”
In its mission, the company talks about removing borders from transfers, which it has successfully achieved through its services. Similarly, the company talks about making transfers instant and convenient.
All transfers through TransferWise take significantly lower time as compared to a bank or other forms of transfers. For example, a bank transfer can take 3-7 business days or even more. For some TransferWise transfers, it may take hours or sometimes minutes.
Similarly, the company believes in transparent and, eventually, free services. The company is already transparent with its users and does not have any hidden costs.
Furthermore, the mission also states the overall objective of the company, which is to make various currency transfers easier for individuals and businesses without any restrictions.
The objectives of a company define a goal or outcome that it wants to achieve. It also describes the techniques that the company will use in obtaining its mission.
As of now, the company’s main objective is to introduce instant transfers in the market. While the company is far from achieving this objective, it has made some progress towards it.
Some of its transfers take a few hours, some even less. If the company continues in the same way, it will achieve its objective soon.
TransferWise’s Business Model
The business model of a company defines how it generates profits. For TransferWise, the primary source of revenue comes from its transaction-based charges.
For every transaction a user makes, the platform charges a fee, which while insignificant, still makes the company some money. Therefore, the transfers constitute the primary service for the company that generates its revenues.
However, the company doesn’t only earn from that. TransferWise also offers users other services such as a debit card, business accounts, or accounts for banks, all of which can help it generate even further income. Nonetheless, these products are not the primary source of income for the company.
TransferWise is a company that provides users with various services related to online money transfer. The platform supports multiple currencies worldwide.
TransferWise is a successful company because of the beliefs behind it. Given above is a detailed explanation of those beliefs in the form of the company’s vision, mission, objective, and business model.