TransferWise will change the money transfer business forever. And Taavet should know, he already did it in the global telecommunications industry. Taavet was the first employee of Skype when it originally started in Estonia!
For TransferWise he is applying the same concepts: use the internet to harness the power of peer-to-peer. But in this case he is enabling people transferring money in opposite ways to match their transactions and thus lowering the total transfer cost to a fraction of what it was. And a “fraction” is not 10% discount, think 90%!
As brilliant and simple as this sounds this has never been an easy task. Banks and international financial institutions have held this market hostage for years where their commissions have been anywhere from 5% to 10% for an ordinary remittance.
In this interview Taavet talks about his background and explains how TransferWise works: