Facebook’s first funder just backed TransferWise, a startup that’s like an ancient Islamic money transfer system

Here’s how TransferWise works: Nikos, a Greek migrant in London, pays £100 pounds to the web-based service via his British bank or debit card and asks for it to be sent to Athens, where his brother lives. TransferWise’s algorithm finds someone in Greece, let’s call her Alexa, who wants to send money over to London. She’s put her funds in as well. TransferWise takes the cash out of its own British holdings and sends it to Nikos’s bank account. Its arm in Greece does the same for Alexa. Presto: everybody’s got their remittance and the involvement of banks remained strictly domestic.

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May 16, 2013 · Jennifer · No Comments
Tags: , ,  · Posted in: TransferWise

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