TransferWise has launched a peer-to-peer transfer app on iOS, allowing users to transfer money abroad without incurring bank fees but taking a 0.5% cut themselves.
The requires users to choose a currency, add in contact and payment details, and specify the amount they wish to send.
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Hinrikus, said: "This new app has been designed to take the hassle out of transferring money overseas, by saving users both time and money. We offer significantly cheaper and more transparent money transfers than banks – just 0.5% of the money being transferred, while banks charge up to 5%.
"We can afford to do that because our technology bypasses the traditional international bank payments system and directly matches consumers and companies in different countries who want the opposite currency."
TransferWise, co-founded by former Skype director Taavet Hinrikus, received a $6m (£3.9m) cash injection from PayPal co-founder Peter Thiel in May 2013. It went on to develop the app, an extension of its money transfer service for consumers and SMEs.
TransferWise was set up in 2010, when Hinrikus and consultant and co-founder Kristo Käärmann, both expats in London, realised they could eliminate banking fees through peer-to-peer transfers.
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By GlobalDataHinrikus had worked for Skype in Estonia and was paid in euros, but lived in London. Kaarmann worked in London and was paid in pounds, but had a mortgage in euros back in Estonia. The two bypassed bank fees by each paying the currency the other needed into their bank account every month.
Hinrikus said: "Following the launch of the app, users will now be able to take advantage of the service while on the go. So, whether you’re an international student, expat or business owner, the world really is becoming a smaller place".
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