In today’s episode of MyCurrencyTransfer TV, we talk through some very exciting innovation in the world of currency. In particular, we cover peer to peer money transfer and how the power of crowdsourcing is helping individuals across the world slash the cost of sending money abroad. It’s very exciting & we’re delighted to be part of the revolution by comparing on our aggregator the world’s leading peer to peer money transfer companies.
Good morning everyone and welcome to yet another edition of MyCurrencyTransfer.com TV. Today, we’re going to look at an exciting innovation in the world of international payments. Namely, peer to peer money transfer.
Forward thinking currency businesses are using the power of crowdsourcing to help cut the cost of sending your money abroad by up to 85%, and we’re very pleased to be part of the p2p & crowdsourcing of currency revolution. So much so, we’re proud to list some of the top businesses on our market leading currency comparison aggregator.
So, what is peer to peer foreign exchange?
As an example, let’s take the case of Alex & Jennifer. Alex is from the UK has just bought his dream second home in Marbella, and needs to make a money transfer to spain, buying euros and selling his pounds.
On the other side of this equation, we have Jennifer. Jennifer has spent the last few years working in Spain and is now ready to repatriate and move her money back to the UK. Jennifer needs to make a money transfer to the UK from Spain, selling euros and buying pounds.
Enter the world of peer to peer money transfers. Instead of instructing their local banks to make the international money transfer at vastly inflated markups – often up to 5% of the amount that’s being transferred, money transfer P2P marketplaces like Transferwise or CurrencyFair will match Jennifer & Alex’s funds.
When there is enough liquidity and the two are matched perfectly, these companies essentially use the power of currency crowdsourcing to negate the need for currency exchange to take place. You subsequently only pay a very small fee for using the platform.
So, what happens if there isn’t an exact currency match?
When there is not a 100% match up, you end up matching with the peer-to-peer currency platform. However, the exchange rate markups that are applied for the privilege of making this transaction are a tiny fraction of what would be taken by the bank, helping you transfer your money abroad at very low cost indeed, up to 85% cheaper versus the banks. It’s fast, super simple and much much more cost effective than the old school conventional ways of moving your money abroad.
I’m personally very excited about this development & truly believe in the power of peer to peer. Whether using the AirBNB P2P platform for slashing the cost of my hotel rooms on business OR matching foreign cash rates using the mid-market rates when I go on holiday with friends (my friend has shekels, I have pounds, why go to the bureau – let’s just agree on a fair rate via reuters!), peer to peer is definitely the future.