TransferWise announced on Monday a partnership with Groupe BPCE in France, to offer money transfers for low cost to the customers of the lender marking the first big integration of the startup from the UK with a large bank.
The firm headquartered in London specializes in cross currency money transfers for less cost that the traditional banks. Moving currencies across the globe is usually expensive due to the banks taking a large cut and exchange rates that are unfavorable.
However, TransferWise allows its users to transfer money from one particular currency into another with a few that equal 0.5% and at the exchange rate they called mid-market.
The company at this point has 3 million users that are transferring as much as €2 billion or $2.3 billion monthly, and it has been searching to boost its overall reach through partnerships such as the one just signed with BPCE, which is France’s second largest banking group.
TransferWise will now have access to BPCE’s 15 million clients. The service is going to be integrated through the group’s banking apps beginning in 2019, said the two companies in a joint announcement from Amsterdam.
Groupe BPCE becomes the first major bank to enter a partnership with TransferWise which typically has been seen as challenging incumbents. N26 the German startup bank as well as LHV from Estonia have partnered previously with TransferWise.
When TransferWise was launched during 2011, it focused its marketing for the most part on attacking banks and offering products as a viable alternative. However, of recent, the company tried to work with different banking institutions in a move that could help continue strong growth.
TransferWise for its fiscal year that ended March 2017 posted its first annual profit as far as operationally and said revenues had more than doubled. TransferWise has not posted its fiscal results for 2018 as of yet, but CFO Matt Briers said that it would book profit for another year.
CEO at TransferWise Kristo Kaarmann hailed the new partnership that was signed with the France banking group as momentous for its mission of making money transfers fast and cheap as email.
Kaarmann said that the banking industry was starting to embraces service that challengers are able to offer.