TransferWise Launches In Malaysia; Offers Lower Costs For International Bank Transfers
Global financial technology company TransferWise launched its operations in Malaysia on November 21. It promises to allow Malaysians to send money to 83 countries at lower rates than international bank transfers.
The value proposition behind TransferWise is that there are no hidden charges; everything is displayed up front. This is due to the company originating in the European Union, where legislators are moving towards more transparency in international money transfers.
One of the most important features is that the service uses the real exchange rate (i.e. the one seen on Google). Unlike other financial services which set their own rates that are only slightly tied to the real exchange rate. Ideally, this means that you always know how much you are sending.
TransferWise also claims to be cheaper to use than banks in Malaysia – and can be up to 4x lower when sending money to five major markets (the US, UK, continental Europe, Australia, and Singapore).
For example, sending RM 1,000 to the UK costs just RM 7.20 with TransferWise, but costs on average RM34.60 with a bank. This is based on the average prices of five major banks on November 18, 2019.
Prices for sending RM 1,000 on other major routes are:
- EUR – 0.71%
- AUD – 0.72%
- HKD – 0.76%
- CAD – 0.81%
- SGD – 0.84%
- NZD – 0.85%
- INR – 0.88%
- USD – 0.98%
- IDR – 1.10%
It also offers to complete most global transfers within 24 hours.
TransferWise’s service in Malaysia is open to individuals. This includes all locals and foreigners who with an Expatriate status. However, due to additional checks required by regulations, foreigners with a Foreign Worker status will only be able to use the service in 2020.
Business transfers are also expected to begin by next year.