TransferWise, the UK based cross-border payment transfer company’s Co-Founder Taavet Hinrikus explained his interest in Ripple but the company hasn’t moved to Ripple yet. Hinrikus, who was a former CEO of the company explained about the potential application of blockchain technology for cross-border money transfer on Balancing the ledger, Fortune’s online show.
TransferWise was started in the UK in the year 2011 by two friends from Estonia who wanted to send money from the UK to Estonia. They saw the existing problem and found a solution to cross-border payments and decided to quit their jobs to start their own business.
According to TransferWise’s website
“They’re both from Estonia. Taavet was the first employee at Skype, so he got paid in euros. But he lived in London, and needed pounds to pay the bills. Kristo worked for Deloitte and lived in London. He got paid in pounds, but had a mortgage back in Estonia. He needed to pay that in euros. Every month they moved their money the old way – which wasted their time and money. So they invented a beautifully simple workaround that became a billion-dollar business.”
TranferWise, today, has over 4 Million customers who transfer more than $4 billion every month. In the interview of balancing the ledger, Hinrikus explained that they needed to build their own infrastructure:
“Banks use the SWIFT network, which is great [since] the money eventually gets there, but many people touch the money in between, and everyone takes a cut, everyone keeps the money for a day. Using TransferWise, because we plug in directly in every country, we can do it really quickly, and the cost is typically 10 times less than using a bank.”
He also specified his stance on Ripple and Stellar:
“Today… there’s not widespread adoption for any of these. If every bank in the world was connected to the Ripple network, it would be amazing. Yet, how many banks today are using Ripple in production is a very short list… In that sense, we’re big supports of Ripple or anything else… We know the Ripple team. We know the other teams. And if any of these gets enough adoption [such that] it actually materially helps us to do things cheaper and faster, we’d love to, but so far, we haven’t found one.”