International payments provider Wise (formerly TransferWise) has partnered with neobank N26 since 2016 to offer low-cost, fast, and transparent cross-border transfer services to customers. These transactions can be initiated from within the N26 app. On June 25, the challenger banks announced that they are expanding their partnership to serve their customers better.
Currently, at least 7 million clients use TransferWise, saving more than £3m a day in hidden fees. On the other hand, N26 serves over 5 million customers with a simple, secure, and streamlined method of managing their money in real-time.
Through the latest expansion of their partnership, customers can send funds to more countries. Some of the listed new countries that come with the new move include Mexico, Brazil, the Philippines, Singapore, South Africa, and more. That will enable users to manage their funds around the world.
The news comes amid growing concerns over the resurgence of COVID-19 outbreak in places where it was subsiding. These fears have led to economic downturns and the challenger banks have not been spared. Our previous research has revealed that Challenger banks’ app downloads had slumped by 23.38% amid pandemic.
How it works
TransferWise is seamlessly integrated into the N26 app due to its powerful API. Thus, clients can make international transfers using their smartphones. There is no separate app and users are not redirected anywhere else to complete the transfer.
Hence, sending transfers directly from an N26 account is easier than doing it via TransferWise. Since N26 also upholds transparency, customers enjoy the mid-market exchange rate.
There are no added mark-ups and they pay TransferWise’s lowest transfer costs only and all amounts are transparently shown upfront for every transfer.