In the move to expand operations outside the UK, TransferWise is offering the first multi-currency banking dubbed as TransferWise Debit Mastercard.
Using this new debit card, customers can shop and send money overseas as if they are locals. With very limited transaction fees and penalties, a cardholder can save more money.
This new card is designed for people who are always abroad and traveling, so it becomes easy to spend money internationally. According to Yahoo, this card will be launched later this year. News about its release in the Asia Pacific is also in the works.
TransferWise is embracing the US market as the country has a large number of people who are dependent on cards. By charging very low to convert currencies about 0.45 per cent, the company is hoping to get more customers.
Perks of using the debit card
TransferWise conducted research and found out that what they will be offering is cheaper compared to traditional banks. It is 12 per cent cheaper specifically, which means sending $1,000 will only cost about $7.25 in the card.
Meanwhile, in the United States, Bank of America charges $63.88 for transferring the same amount. PayPal is also expensive with $34.64 penalty.
For cash withdrawal, the TransferWise debit card only charges $1.62 for every withdrawal, while most US banks charge $12.50.
TransferWise Chairman Taavet Hinrikus said that the bank is able to charge lower because it isn’t associated with overhead branches. “We’re not greedy, were focused on providing the service in a low-cost way and running a profitable business,” Hinrikus added.
With the price drops in the financial services, the bank was able to tap the middle-class earners in the UK. They also said that with this strategy, they were able to dominate the UK market.