Monzo adds TransferWise to its app

, Internet, Tarjetas y Pagos Electrónicos, Tecnología Personal, Telecomunicaciones

UK-based Monzo is integrating UK cross-border money transfer company TransferWise into its app, which will allow the neobank’s 750,000 customers to send international transfers in 16 currencies.Monzo Partners with TransferWiseThe feature, which began rolling out on Monday, embeds TransferWise as an option in Monzo’s payments tab, but is otherwise a fairly similar experience to that of TransferWise’s own app — users can integrate their existing account or have one set up for them upon their first transfer, and will see fees and exchange rate information upfront, according to TechCrunch. Monzo will take a share of TransferWise’s fee as part of the terms of the partnership.

The feature has been in-demand among Monzo customers:

  • Remittances are at an all-time high. Last year, remittances hit a record high of $466 billion, up 8.5% from 2016. And customers in the UK alone sent $26.8 billion abroad last year, according to the World Bank. International payments are a top feature demanded by Monzo customers, so that, combined with rising remittances, indicates appetite for such a service and could bode well for its launch.
  • Monzo and TransferWise’s shared target demographic could help the service take off. Neobanks and digital-first remittance players have seen particular success among younger, digital-savvy customers, thanks to their ability to undercut legacy players on price and convenience. A number of Monzo customers are already using TransferWise, which means the service could be effective at engaging existing users as well as attracting new ones who might have similar priorities.

For TransferWise, the move is likely part of a “platform play,” according to TechCrunch.TransferWise is interested in becoming more “agnostic” with regard to access, likely to broaden reach and grow volume, according to TechCrunch.
Combined with the firm’s Borderless accounts, which offer international bank details and fee-free international fund access, the move could help expand access, grow volume — the firm sees roughly £2 billion ($2.7 billion) in transfers per month — and diversify revenue. If successful, it could also serve as a blueprint for future growth plans for the remittance platform.
And that’s ultimately a win for Monzo. Offering TransferWise access could help differentiate Monzo, which is slightly behind other neobanks when it comes to variety and diversity of offerings, from its peers — Starling, for example, recently opted to dissolve a partnership with TransferWise before it launched.
As Monzo angles to become a “hub or control center” for users’ money, via both its own services and third-party integrations, the TransferWise partnership could be a sneak peek at what’s next. If it works, future partnerships could help the bank ramp up competitive positioning, grow market share, and keep customers loyal by allowing convenient access to third-party services that Monzo customers already use without leaving the app.

Source: http://www.businessinsider.com


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