Peer-to-peer money exchange service WeSwap raises $7.5m

A fintech start-up that allows users to exchange foreign currencies with each other on a peer-to-peer basis has raised $7.5m in Series A funding.

Founded in 2013 by Jared Jesner and Simon Sacerdoti, London-based WeSwap operates a service in which users can exchange currencies directly with each other, which the start-up claims represents better value compared to traditional currency exchange services.

Unlike competitors such as Transferwise, WeSwap’s focus is on the travel and holiday money market, rather than money transfer for investment or other purposes.

Customers receive a prepaid MasterCard with the money they have purchased on it, rather than having the funds deposited into their bank account directly.

The $7.5m funding round was led by VC firm IW1 Capital, with participation from EC1 Capital and existing investors. It will be used to launch the service in new international markets and increase the number of supported currencies.

Jared Jesner, founder and CEO of WeSwap, said: “WeSwap is the ideal product for today’s traveller, offering a social and mobile way to get hold of foreign currency through the power of the crowd.

“The investment allows us to accelerate our growth across more international markets and to continue to bring great value and transparency to a market that has long suffered from opaque, confusing propositions.”