TransferWise and Xero to help small businesses save on foreign currency payments
Partnership could help small firms save up to 10 times on currency transfer fees compared to traditional banks
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.”