Beginning in 2009, the UK and Ireland have witnessed a proliferation of services offering affordable alternatives to traditional money-transfer services. It began with Dublin-based CurrencyFair, continued in the UK with TransferWise and Azimo, and now Lithuanian-founded TransferGo enters the picture. Despite launching later, TransferGo has quickly gained market-share and established itself as a strong competitor to the most-established players.
Generally speaking, it appears that the primary difference between the money-transferring services is in the fee charged and currencies supported. TransferGo, which was founded in January 2012 by the team of Daumantas Dvilinskas, Edvinas Sersniovas, Justinas Lasevicius, and Arnas Lukosevicius, charges a flat fee of 2.5 British Pounds for every transfer. CurrencyFair, in comparison, takes 3 Pounds and 0.35% from each transaction.
Perhaps most interesting, though, is that TransferGo does not actually transfer funds accross international boundaries. Through their “pure-play” remittance system, senders transfer money into the TransferGo bank account within their current go and the recipient is then paid from funds located in their particular country. Ostensibly, this allows the company to avoid sending money across borders and to pass the savings on to customers in the form of lower rates. From their site, it appears that TransferGo currently allows transfer by Pound or Euro and only between Euro countries.
Although TransferGo launched a bit later than competing services, they have managed to demonstrate solid growth in just a short period of time. To give an idea of TransferGo’s growth, it was reported back in October that 10K customers had transferred $3 million. Now 7 months later, the company reports that 29K customers have moved $20.4 million.
Thus far, TransferGo is backed by $455K that it obtained from Lithuanian fund Practica Capital. Practica Capital has recently become one of the go-to sources for funding in Lithuania. The VC firm, which manages a 6-million Euro seed fund and 15.7-million Euro VC fund, invests EU money (mostly) through the JEREMIE program and has invested in projects like TrackDuck, AdDuplex, CGTrader, Dragdis, and more.