A better way to transfer money abroad? Here is TransferWise

A friend recently told me about this new platform that offers exchange rates as you see them online, which are much better than what you can get at the banks.

I have mentioned peer-to-peer lending in a previous post. Here is yet another example where technology is enabling smaller firms to challenge the dominance of traditional banks, and sometimes allowing service users to bypass the banks altogether.

The idea seems obvious. Use technology to match up people who need to exchange money. If this is managed well, the overall movement of money in both directions should cancel each other out and the money never have to leave the respective countries. Instead of having a middle-man (i.e. a bank) the money is exchanged directly between individuals. 

Simple yet innovative, and very convenient. I will try this next time I need to make an overseas payment. If you have used TransferWise before please share your experience with us.

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