8.6 C
New York
Sunday, February 28, 2021
Home Fintechs TranferWise is waiving fees on $20,000,000 in donations to COVID-19 research

TranferWise is waiving fees on $20,000,000 in donations to COVID-19 research

The cross-border payments unicorn TransferWise announced a partnership with charities and organisations who are seeking to find and distribute, a vaccine for COVID-19.

The company pointed out that most banks and payment providers don’t exchange your money using the mid-market rate and that they alter the rate in a way that is favorable to them, and pocket the extra money.

Read also: Curve Credit will be powered by Thought Machine’s Vault

With that, the donation to a charity abroad turns into the processor’s profit. “We think that’s wrong — especially during times of global crisis,” claims TransferWise.

Documents leaked to Guardian Money back in 2017 revealed that Santander made €585 million from money transfers in 2016. That’s equal to nearly a tenth of its 2016 global profit of €6.2 billion. The documents also revealed that the bank – at least back in 2016 – charged six times as much as TransferWise for sending £10,000 from the UK to Spain. – Fintech Futures reported.

TransfeWise decided to waive their fees on up to $20,000,000 in donations. The company has partnered with United Nations Foundation (UNF), Coalition for Epidemic Preparedness Innovations (CEPI) and Gavi, the Vaccine Alliance.

The customer is able to donate without the fear of being charged through following steps:

“Please follow these steps rather than sending money directly to your chosen organisation. This is the only way we can waive our fees, giving you the real exchange rate.”

  1. From our landing page, choose the organisation you’d like to donate to
  2. You’ll be prompted to log in to your TransferWise account, or to create a free account if you don’t already have one.
  3. Select the currency you want to donate from, and the amount you’d like to send, then make your donation!

Annual revenue at TransferWise grew to £302.6 million. These results show a net profit after tax of £21.3 million for the fiscal year ending March 2020. This August TransferWise’s early investors sold some of their stakes in a $319 million secondary deal. With that, the value of the company was estimated at $5bn.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Starling Bank aims to hold 18% of the SME market

The digital bank Starling announced a plan in which it is going to hold 18% of the SME banking market in five years, Insider reported.

TransferWise gets rebranded as ‘Wise’

The rebranded company Wise drops the part Transfer as a signal of moving on from the money-transfer focus of the company.

Revolut about to increase fees and cut number of free trades

Revolut introduced additional fees on its free plan and trading on the Revolut platform will also become more expensive.

Exclusive: An interview with Michael Schweikart, a co-founder of the sustainable banking provider Tomorrow

Tomorrow is a social business FinTech company and a neobank, that was started in 2018 by founders Inas Nureldin, Jakob Berndt, and Michael Schweikart with a vision to use money as a lever for positive change. Since its launch in 2018, the company has 50+ employees and 55,000+ customers.