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.
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).