In a 2nd profitable year, money transfer startup TransferWise doubled its user base

International money-moving startup TransferWise turned a profit for the 2nd year running after doubling its user base in just a few months.

TransferWise, a 7-year-old fintech startup that makes it easier to transfer money internationally, announced yesterday that it turned a profit for the 2nd consecutive year. 

In a 2nd profitable year, money transfer startup TransferWise doubled its user base

Buoyed by a fintech industry that’s growing rapidly to support increasingly international global businesses, TransferWise doubled its user base from 2m to 4m this year and increased revenue 75% from $86m to $152m. 

Borderless workers want borderless money management

By pooling money in several locations, TransferWise cuts middlemen out of the transfer process, cutting fees from the 5% charged at most banks to 0.6%.

T-Wise also recently launched a “borderless” European debit card that lets users pay and receive money seamlessly in numerous currencies — a benefit that is more important than ever thanks to the looming Brexit.

It’s a regular fintech fiesta

The international money transfer industry is expected to grow from a $1.5B industry in 2017 to a $5.9B industry by 2023. 

Startups WorldRemit and Revolut are raising tons of cash (a respective $233m and $336m compared to TransferWise’s $396m) to carve out their pieces, but neither startup is profitable yet.

Traditional money transfer services are also investing heavily in new digital services. Western Union recently announced a “fintech expansion” to broaden the reach of its money transfer operations (which are already active in 200 countries and territories).

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