TransferWise, a money transfer company considered to be among the most successful fintech startups in Europe, will permit users to send money over its network using Apple Pay’s payment service in an attempt to improve the security and ease of transfers.
TransferWise hopes to expand its transfer business through its exposure to Apple’s customer base.
Apple Pay users will no longer need to use a payment card or bank accounts to transfer funds using TransferWise. Instead, users will transfer funds using their Apple Pay account.
The speed of transferring funds by Apple Pay within TransferWise varies by currency, according to a TransferWise blog. The recipient of an Apple Pay or card transfer will usually receive their funds around one day sooner than a bank debit transfer. In some cases, the transfer can be received instantly.
Apple Pay's Benefits
When using a credit or debit card with Apple Pay, the card numbers are not stored on the device or on Apple servers. Instead, an account number is assigned, encrypted and stored in a secure place on the user’s device. Each transaction is authorized with a one-time security code. If the device is lost or stolen, its owner can suspend Apple Pay so others cannot use it to make payments.
Apple operates its AAPLL.O service in the U.S., the U.K. and a handful of other countries, according to Reuters. The TransferWise Apple Pay integration will be introduced to the U.S., the U.K., France, Ireland, Italy, Spain, Switzerland and Australia.
TransferWise Apply Pay transfers are not yet available for customers in Illinois, Louisiana, Nevada, New Mexico, New York, Oklahoma, South Carolina, Vermont and Virginia, according to the TransferWise blog.
Enhanced Security and Convenience
Gregory Talon, consumer product lead at TransferWise, said the new arrangement improves user convenience since it is not necessary to type in card details and reduces the risk of an outsider seeing what a user is doing.
TransferWise, launched six years ago, is among the best funded European fintechs, having backing from Andreesen Horowitz, British billionaire Richard Branson and Max Levchin, founder of PayPal Holdings Inc.
TransferWise is among a rising group of startups that use digital technology to reduce the cost of sending funds abroad for businesses and consumers. The company processes more than $1.2 billion per month over 750 currency routes.
Payment Partnerships Expand
Payment partnerships are expanding, as companies such as telecommunications providers, bans technology firms seeking to gain an advantage in the sector, which is highly competitive.
Taavet Hinrikus, TransferWise CEO, said at a conference in London earlier this year that it will be moving its European headquarters from London to maintain access to the single market after Britain leaves the European Union (EU) in two years.
However, since the U.K. remains its biggest market, Hinrikus added that its global headquarters would remain in London, which currently has around 120 people employed.
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