Transferwise, an Estonian-founded and U.K.-based peer-to-peer (P2P) international money transfer service, has launched a borderless bank account service which allows businesses to hold money in different currencies as well as exchange and use it.
Through the new account, businesses can operate in foreign countries as though they had a local bank account, the company said.
The virtual account allows account holders to keep money, convert it to 15 different currencies and apply for an account number in the eurozone, the U.K. and the U.S., with the number of currencies and countries expected to grow in the future.
Opening the account is free, there are no monthly maintenance or service fees and it is also free to receive money to the account. There is a charge for transactions between different currencies and the currency exchange will be carried out according to the central rate.
Within the year, Transferwise also plans to bring to the market a similar product for private customers. The account will be accompanied by a debit card, which will allow the user to withdraw cash or pay by card.
Businesses will be able to hold 15 different currencies in their account: the British pound, euros, U.S. dollar, Australian dollar, New Zealand dollar, Japanese yen, Hong Kong dollar, Singaporean dollar, Canadian dollar, Swiss franc, Polish zloty, Hungarian forint, Swedish krona, Norwegian krone and Danish krone.
The company reported that more than one million customers are transferring more than one billion euros using their service every month. The company employs over 700 people in nine different countries across the world.
Last month, the company opened an Asian head office in Singapore. In the U.K., which is the company's most mature market, Transferwise owns 10 percent of the international payment market. The company last year grew by 150 percent and the same growth tempo is expected for the current year as well.
Editor: Aili Vahtla