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richman

TransferWise and Revolut has techniques to reduce remittance charges

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It is competition, but still uses existing nastro/vastro accounts. They are solving liquidity demands, but how are they going to transfer money from one nation to another in order sure up those accounts where money is needed? It is good for customers, but if the author is precise with his explanation of how Transferwise is functioning with its new system there is still the availability for improvements. It does not solve the settlement issue. This is also a system that could be complimented with XRP and Xrapid by nearly instantaneously allowing both the payment and settlement of funds. This could in theory, if I understand their process correctly, allow a smaller company like Transferwise to compete with larger banks. They can move their own funds around the globe with Xrapid to sure up local accounts.  

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I didn't read the article, but Transferwise says that they are 8 times cheaper compared to "leading UK high street banks". That is only when they offer the service you require through their own services. If they don't have the 'corridor', they are still charging Swift costs, which are still ridiculously high.

Transferwise still cannot compete against the rates that Western Union is offering though. Therefore, it's highly questionable if their business case can be competitive enough, especially when WU swings on xRapid (*he said hopeful*). 

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Posted (edited)

transferwise - not revolut

revolut are just sneaky, they give you zero interest, so keep the interest for themselves AND charge a monthly fee; their secret is a nicely bundled package with a good UX and some fancy features, but that won't hold customers forever -- but i'm not sure how they do FX unless they are outsourcing -- and i'm fairly sure their rates aren't spot -- or, maybe not having to have interest-bearing foreign accounts gives them a hack or funds are cleverly pooled somewhere 

the TransferWise thing sounds interesting and innovative, but again it is only a "work-around" for an archaic system; ripple net is an entire upgrade 

Edited by zerpdigger

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