In the recent time, a financial technology firm, TransferWise, reported profits for the third year in a row, which is an unusual show of progress for an industry cluttered with start-ups that have combated to break even. The London-based firm said that its net profit following tax surged to $12.8 Million (£10.3 Million) in the financial year ending in March 2019 was increased by 66% from a year ago. The proceeds of the company rose by around 53% to £179 Million. Recently, TransferWise was valued at $3.5 Billion and has stunned the money transfer sector with an online platform that it states will facilitate people to transfer money offshore at a fraction of the cost presented by lenders and the likes of MoneyGram and Western Union.
TransferWise was established in 2011 by Kristo Kaarmann and Taavet Hinrikus with the aim of making overseas exchange fees more translucent. Kaarmann—CEO of TransferWise—said the company was amongst a “rare class of unicorns” that have succeeded to form a profitable business. Kaarmann stated CNBC, “This is indeed unusual but it is very imperative for us internally. We only know if that product functions and once it works on its own and doesn’t require any extra cash to prop up it.” Several other fintech unicorns—normally referred to private firm worth $1 Billion or more than that—so far have failed to create an annual profit.
Recently, Western Union was in news as the financial services company is set for expansion in Canada with Paramount Commerce. This deal will facilitate consumers across Canada to transfer money from westernunion.com or the mobile app of Western Union directly in bank accounts in more than 100 nations and territories across the globe. The money transfer can also be done in regional currency at many Western Union Agent locations internationally.