There are so many new money transfer services that it’s now complex to calculate. Let’s explain. The World Bank officially states every quarter about the number of money transfer services in the World. According to it there are more than 500 money transfer services. What the World Bank doesn’t take into account is the number of licensed entities which are authorized to transfer money: there are dozens of thousands just in Europe and in the US. Last but not least, all new money transfer solutions are not featured in their list and new services based on innovative technologies are not either.
1/ New online money transfer services are raising millions
The new online money transfer services such as Transferwise, Azimo and Worldremit, but also Covercy, Currencyfair and Klinnk are raising millions all over the world. Why?
There are 2 reasons: the first one is for their activity: their activity needs to have some money ready in many countries so that they can use compensation and avoid transferring money internationally. The second one is because they make so much money wherever they are that investors are seduced and want to be part of the adventure.
It’s a successful business over the last 5 years and it’s probably going to continue if we take a look at the international investment behavior with money transfer operators.
2/ Using new technologies help money transfer services to multiply
The main entry barrier in the market is the license barrier. Because it’s needed to apply for money service businesses licenses there are many entrepreneurs who don’t tackle the market. Wait. They didn’t. Now they do for 2 reasons: the first one is because it’s possible to rent a license from another institution, and the second one is because it’s possible to avoid the licenses needs by working around and still be very secure. The blockchain technology might help for this purpose. One of the only ways to have an overview of the market is to use a money transfer comparison service which features the alternatives transparently.
The best new money transfer services are online, they are raising millions and have a huge business to tackle. New money transfer services are using new technologies and are avoiding the risks. Using a comparison service for money transfers will help to have a good overview.