International money transfers (from one country to another) are a process that became relatively simple only in the last decades of the last century. However, the situation that we have been observing over the past 10-15 years has made its own adjustments: the emergence and success of fintech companies (primarily TransferWise) forced the “old players” of the industry to adapt to new realities and develop.

Becoming Fintech

FinTech companies in the money transfer industry, such as TransferWise and Xoom, started with peer-to-peer payments and then moved on to providing services on a client-to-client basis - in other words, to the familiar “p2p” format. PayPal, another longtime player in the market, has noticed the "fintech effect" that explains its $890 million acquisition of Xoom. TransferWise is an even more telling example. This is a “unicorn startup” - its value exceeded $1 billion, which reached the profitability threshold 6 years after the start.

The main difference between Xoom and its competitors is its limited customer reach. While Xoom only works with US citizens, TransferWise, WorldFirst, OFX and Currencies Direct actively serve payments to customers around the world.

Making transactions economical again

The World Bank's The Remittances Worldwide Prices (RPW) report shows that the average global total cost of sending $200 has fallen from 10% (2008) to 7.5% (2015). A report published by Infosys said that this trend will continue, mainly because fintech companies are a more profitable alternative. Why? For example, the average tariff for an international money transfer in one of these services is 5.3%. If we compare with bank transfers, then on average there is 11%. There is a difference, right?

How can international money transfers be simplified?

Now many fintech organizations help companies make payments from anywhere in the world. Some of them are providing only payments, some of the organizations are providing currency conversions, some online platforms for financial audits, etc. But what if all the payment needs were in one place?

Collect & Pay is a financial platform for business. You can manage all of your financial activity in one place. Send payments to your customers in different currencies quickly and easily. Our dedicated customer support team will consult you at any time in case of complicated transactions or any other issues.

Click here to open an account or contact us via [email protected] to get more information and features of our platform.