- Third consecutive year of profitability for TransferWise as profits and user levels double year on year
- More offers for small- to medium-sized businesses encourage higher profitability
- The borderless bank account, which launched in 2017, has also proven to be popular
A British international money transfer firm is celebrating a third year of profitability amid a range of successful strategic decisions and product offerings.
TransferWise, which is a well-known brand name in the sector, said in its recent annual report that it is seeing profits increasing – and that there have been sharp rises in the past year as well as consistent rises over time.
While in the last financial year it saw post-tax profits of £6.2m, it has now seen a two-thirds leap to £10.3m in this one.
According to the report, the company now has six million users. Between them, they make transfers of £4bn every single month.
This is again a rise on last year.
During mid-2018, for example, there were three million users of the platform who were between them using it to send £2bn a month – meaning there has been a doubling of the figures.
The firm’s annual report shows a series of specific insights which are useful to those involved in the cross border payments sector.
It explained, for example, that the firm is now catering for even more types of business – a move which will no doubt have enhanced its profitability even further.
Small- to medium-sized firms, for example, are believed to use the broader industry to transfer $10tn– despite the fact that this means they lose $200bn in fees.
However, TransferWise’s competitive approach to fees for this sector means that 100,000 such firms have signed up to use the firm's services.
In addition, it also flagged the role of its borderless account deposits scheme.
This account was first offered to customers back in 2017 and permits customers to use more than 40 currencies.
These accounts come with regional bank account numbers too, meaning that customers can bank as though they were physically in each country – and save on fees too.
TransferWise is one of the biggest names in the investment sector, primarily focusing on the UK.
For this reason, there’s always a lot of interest in how it’s performing – and this profit report is no exception.
Perhaps the main group which will be pleased to see the development, however, are those cross border payments firms which are currently much smaller in nature, and which are currently sustained only by investment capital or similar.
For these companies, seeing that there is the light of profitability at the end of the tunnel could really be an incentive to work hard and build their businesses.
If you’d like to know more about what organisations in the online money transfer sector are up to and how they’re doing, don’t forget to head over to our news pages.
