UK-based TransferWise has launched its low-cost, fast money transfer service in the UAE.
Regulated under Abu Dhabi Global Market (AGDM) Financial Services Regulatory Authority, TransferWise Nuqud Ltd will now enable people to send money from AED at the real mid-market exchange rate, using its platform, according to a statement released today.
The Money Service Provider, which has opened an office in the ADGM, had got its UAE licence to operate in 2019, with 15,000 signing up for notifications about the launch.
World Bank data shows that outward remittance flows from the UAE reached US$44 billion in 2017, making it one of the biggest outward remitters in the world. This makes UAE an important remittance market, according to Kristo Käärmann, CEO and co-founder of TransferWise. He said, “The UAE is one of the most important remittance markets in the world, and we’re delighted to be bringing the first fully online money transfers to the country. It’s testament to the forward-thinking nature of the FSRA that we’ve been able to bring our product to market so quickly – more competition means more choice for those living and working in the UAE.
“Sending money abroad should be as easy as sending an email, yet many people are still reliant on expensive, slow legacy services. People can now send money to over 80 countries without leaving their homes, and all at the real, mid-market exchange rate,” he added.
TransferWise began operations in 2011 and today serves seven million customers worldwide.
Founded by Kristo Käärmann and Taavet Hinrikus, the fintech firm has a portfolio of high-profile investors that include Sir Richard Branson and a mix of private equities and Venture Capital funds such as Black Rock, Lead Edge, Lone Pine, Vitruvian, IVP, Merian Global Investors, Andreessen Horowitz, Valar Ventures and Max Levchin of PayPal.
Independent research carried out by UAE-based market research and consulting firm Viva Consulting, Transferwise transfers were found to be up to two times cheaper than traditional providers. The study compared the cost of sending money abroad between March 1-5, 2020 among 6 of the top banks and brokers operating in the UAE. The data points gathered were for transfers from AED to USD, EUR and GBP including upfront fees and exchange rate mark-ups.
