TransferWise and Xero to help small businesses save on foreign currency payments

Financial technology companies Xero and TransferWise have integrated to enable UK small and medium-sized businesses to avoid hidden bank fees when paying foreign currency invoices.

London-based TransferWise – founded by Young Guns Taavet Hinrikus and Kristo Käärmann – claims the partnership will enable business owners to save up to 89% when sending foreign currency invoices directly from Xero, by being offered the mid-market exchange rate and a fee of no more than 0.5%.

For example, transferring £1,000 into a euro account will cost £5 in comparison to a bank’s £40 to £50 charge.

TransferWise’s integration with online accounting software Xero is said to mark a huge breakthrough for Britain’s small global businesses as Hinrikus discussed:

“We built TransferWise to bring greater transparency to foreign exchange. This partnership is a great step towards solving that problem for small and medium enterprises.

Xero managing director, Gary Turner, added: “This partnership is fantastic for many of our small business customers that are dealing with different markets around the globe. Small businesses can now easily avoid paying banks those hefty 3-6% commissions, instead paying just a small fee and using a fair exchange rate.

“Together we will continue to work hard to challenge banking and force innovation within the sector.”