For most people, transferring money between banks is not something they think about on a daily basis. But for those who do, and do not wish to have to wait out the usual period that it takes for the funds to be sent from bank to bank, Estonian startup TransferFast has come to the rescue.
The idea behind TransferFast, which is licensed by the Financial Supervisory Authority, is that, while we have long been able to transfer move through the traditional bank route, it should be possible to send funds in as little as 5 minutes. Getting started with this platform involves signing up, entering the details that you would for any typical transfer (name, IBAN, amount, etc.), and then simply transferring the desired amount. In order to provide an indication of how much time you would save, the startup offers a tool that tells users how much transferring money between banks would take if you went the traditional route (I got 578 minutes when I checked). What is nice about TransferFast is that they state that they are open 24/7, including holidays, so it represents an option during an emergency.
The downside, for the moment, is that TransferFast currently only works with 6 banks, listed here, and you are required to use an Estonian ID-card or Mobile-ID when you register, so you are basically out of luck if you live outside of that particular country.
As is typical with financial services, TransferFast has opted for a commission-based monetization strategy, taking of 2% and 2 Euro on each transaction that they process.
Co-founder Erki Hendrikson revealed to me that they have 10 external investors at this point, but declined to note how much they have raised. Despite having only launched in late October, from whence it has picked up “a few hundred customers”, they have already begun to think about international expansion and intend to move into “several new countries” this year, as well as to expand their core service.