CurrencyFair, an Irish peer to peer foreign exchange platform, passed the $1 billion barrier in money transfers, making it the first platform to do so globally.
“We’re laying down a major challenge to the banks by facilitating the cheapest, fastest and fairest way to transfer money home or abroad,” Brett Meyers, the CEO of CurrencyFair, told Irish Times.
“At our current growth rates, everyone left in the FX industry will be competing at that level within a few years. This form of people-powered finance is going to change things forever. There’s no going back from here. And as we accelerate our growth, our fees will fall even further.”
CurrencyFair enables its clients to clinch the best exchange rate using its “Money Matching” technique. This ensures that they can swap currencies and send them across borders at a much lower price than that offered by conventional banks or retail FX brokers. It offers services to clients in 17 currencies.
It charges a fee of 0.35 percent, which is much lower than five percent and two percent offered by Visa and PayPal respectively.
In a separate report, the National Bank of Hungary issued a statement on Tuesday indicating that it intends to hike the minimum capital adequacy ratio that it requires bank to have for their forex business.
It said it plans to hike ratio in small increments from the current 65 percent to 75 percent in July, then by 5 percent gradually until the level reaches 100 percent in January next year. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at email@example.com