Star fintech startup Transferwise is making its first foray beyond money transfers as it starts to ramp up its business having reached profitability just last week.
A new "borderless" account aimed at businesses, solo traders and freelancers has been launched in the UK and Europe in the first of what the firm has hinted will be a host of new offerings.
"Based on what we heard from our customers, we thought TransferWise could do something to help. So we’ve created the Borderless account. It’s an account that’s not constrained by country or currencies and gives businesses more freedom and control," said co-founder and chief executive Taavet Hinrikus.
“We’re building one of the few new global financial services brands that are coming out now. With the unique platform we’ve built, we’re looking forward to creating a new kind of financial services for the future,”
Sending money incurs a small fee but receiving payments with the account is free with rates at the mid-market exchange rate. Cash can be held in 15 different currencies with plans to add further ones and add support for countries beyond Europe and the US later this year.
For businesses increasingly working across borders the account can help reduce currency fees and avoid exchange rate fluctuations.
The service comes under Transferwise's current regulated activities with an e-money license and does not require a banking license.
The tech firm valued at more than a "unicorn" $1bn revealed last week that it became profitable for the first time at the start of the year. It comes as the rivalry between fintech startups hots up. Revolut, the forex firm turned challenger bank, earlier this month took on Transferwise with the offer of no fees on transfers under £5,000.