Moving money around the globe is so much easier than it used to be. Just a decade ago, banks, Western Union, and Moneygram dominated the market. Transfers took days, and they cost an extortionate percentage of the transfer amount.
Things are different today. Advances in technology made it possible for fintech startups to challenge the market share of legacy providers. Now, firms like Transfermate offer the ability to send same-day cash transfers to the other side of the world.
However, they are just one provider among dozens. How does Transfermate stand out from the rest? Are they a good option for remittances? For business transfers? For moving inheritances and life savings?
We’ll answer all these questions in this comprehensive review.
The Background of Transfermate
In 2010, two Irish business people, Sinead Fitzmaurice and Terry Clune, founded Transfermate. In the beginning, it started as a subsidiary of the Taxback Group, its parent company.
They started this money transfer provider to provide businesses and individuals with a better way to move capital. Rather than having intermediary banks handle a transfer, Transfermate sought to cut out the middleman.
They planned to achieve this by building their own banking system. By opening bank accounts in every country in which they operated, customers could avoid substantial costs. Since Transfermate would own every part of the money transfer process, they could charge one low fee.
As the 2010s progressed, their vision began to bear fruit. Eventually, they gained licenses in countries/regions like Europe, New Zealand, Australia, Canada and the United States. By 2015, they had moved 5 billion USD for clients. Two years later, in 2017, that figure rose to 7 billion USD.
Their success has also attracted VC funds. In 2017, Allied Irish Banks invested 30 million EUR in the firm. The next year, Dutch banking giant ING infused Transfermate with 21 million EUR.
While they haven’t achieved the meteoric numbers of Transferwise, Transfermate has amassed a following of its own.
What Are Pros And Cons Of Transfermate?
Like any money transfer provider, Transfermate has its upsides and downsides. Some customer’s interests will be well-served, while others will want to choose a different service.
Below, we’ll discuss the various pros and cons of using Transfermate.
PRO: They offer well over a hundred currencies – 134 to be exact. In today’s world, business owners conduct affairs not just internationally, but in many other “exotic” countries. Whether you’re sourcing coffee in Costa Rica, or cocoa in Ghana, you’ll need a transfer provider that will have your back.
Many mainstream money transfer providers only deal in a few dozen significant currencies. Transfermate handles most world currencies, save for those with restrictions. Because of this, truly international business people can count on them for transfer solutions.
PRO: Transfers are lightning-fast. Transfermate owns and operates its own money transfer ecosystem. As a result, you won’t have to worry about a third-party delaying a transfer. In some cases, you can have your money delivered in as little as ten minutes.
CON: Transfermate’s flat transfer fee is excessive for senders of small transfers. This service allows customers to send as little as 1 EUR. However, Transfermate charges a flat fee of 10 EUR on every transaction.
That rules out tiny transfers and makes sending remittances a terrible idea. If you want to send 200 EUR to your family, the transaction fee will represent 5% of the entire transfer, not including margins. Because of this fee, only transfers of greater than 1,000 EUR make financial sense.
CON: Transfermate’s UI and onboarding process could use some work. According to some customers, the sign-up process for Transfermate can be a very involved process. Some have claimed it took more than a week before they could send their first transfer.
On top of this, some have complained about Transfermate’s UI – or user interface – on review sites like Trustpilot. Some needed to e-mail support for a walk-through on how to transfer money. Even then, ongoing contact was required before the customer finally figured out the process.
Still have questions about this money transfer provider? Check out this Transfermate review by MTC, as they do an excellent job breaking down this operation.
How Transfermate Saves You Money Versus The Banks
The online money transfer marketplace is starting to get crowded. While other firms may be better for some people, Transfermate is unquestionably better than the banks.
Allow us to illustrate this fact with a quick example. Let’s assume that you, an Irish citizen, want to buy a holiday home in Florida. To do so, you need to send 25,000 USD to cover the down payment + closing costs.
You are a client of Allied Irish Banks. In setting up the transfer, they give you a EUR/USD rate of 1.0846. At this price, you would need to send 23,073 EUR, international wire fee included.
But what if you went through Transfermate instead? Unlike the banks, they charge a EUR/USD rate of 1.0954 – much closer to interbank. Including the 10 EUR flat fee, you would send 22,832 EUR to complete your transaction.
That’s right – by going through Transfermate, you would save 200 EUR. If you operate a business that sends wires like these regularly, imagine the annual savings!
Transfermate: A Viable Cash Transfer Alternative For Businesses
Need to send book money to your uni-attending kids? Looking for a transfer provider that will save you money on remittances? In either of these cases, Transfermate is not for you.
But, if you operate a business that regularly sends thousands of dollars/pound/euros abroad, they are definitely an option. With well over a hundred currencies, excellent exchange rates, and fast turnaround, they have the flexibility you need.