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The money transfer industry is flourishing at the moment. With startups sprouting in all corners of the world, it’s inevitable that the payments landscape is going to go through a substantial change. Admittedly, most of the recent solutions offered by existing startups are about peer-to-peer cash payment models. According to the opinions of many people involved in the industry, this model carries a potential to change how people move money around for the better.
Here are the 10 of those startups that are early in the race!
1. M-Pesa – Arguably the most successful money transfer service on our list, M-Pesa is a pioneer in the mobile money arena. M-Pesa’s business model allows both P2P (peer-to-peer) and C2B (consumer to business) transactions to take place. Along with mobile-based money transfer, they also offer micro-financing services. M-Pesa has made a big difference in the lives of millions of people who move money around with convenience.
2. TransferWise – Despite the fact that TransferWise launched its operations in 2011, they have made quite a name for themselves in the peer-to-peer money transfer business. Based in London, this startup has gained attention and funding from some veteran investors in the industry, including, Sir Richard Branson. Their solid growth over the period of three years is a testament to how startups are creating an impact.
3. Xoom – “Reputation cannot be built overnight,” as the saying goes, this next startup on our list, Xoom, has just been building their reputation for years. Launched in 2001, Xoom is one of the earliest companies to get involved in the digital money transfer business. Over these last 13 years, millions of immigrants around the world have used their services to send money back home.
4. WeSwap – Another startup based out of London is WeSwap, a peer-to-peer travel money service. They offer a platform where users can exchange different currencies at an interbank rate for a flat fee, and in some cases for free. What sets them apart from other money transfer startups is their focus on travelers rather than aiming to target the wider remittance industry.
5. PeerTransfer – PeerTransfer is a global leader in payments solution for the education industry. They specialize in international education payments and offer a cost effective solution to both students and educational institutions around the world.
(Take a look at how the history of money transfers has evolved)
6. Sendmoney.ph – Our next choice on the list is Sendmoney.ph, a Philippines-based company. Sendmoney uses Bitcoin to offer a cheap money transfer service for millions of oversea workers who often pay hefty transaction fees while sending money back home.
7. WorldRemit – WorldRemit is yet another startup that offers a convenient, low-cost alternative to traditional money transfer companies. For WorldRemit, they built their unique selling proposition by allowing customers to transfer small amounts as low as $10 through mobile airtime.
8. Remitly – Remitly is another great company, which is playing its role to disrupt the $528bn consumer remittance market. Their mobile payments service allows consumers to make person-to-person international money transfers conveniently.
9. Azimo – This fintech startup has been making waves in the money transfer sector. By recently introducing instant £1 money transfer to 15 countries across Latin America, their goal is to improve the lives of Latin American migrant workers living in Europe.
10. TransferGo – This Lithuania-based startup is a ‘pure-play digital’ international money transfer service, according to their website. Their value proposition – beating competitors by offering ‘next day’ bank-to-bank transfers by using their infrastructure rather than going through third parties.