Moving money from one bank to another can take hours or even days. A new Estonian startup, TransferFast, seeks to tap into a market niche of instantly sending money between different banks.
Estonia boasts with one of the most digital economies around and the latest regulations have slowed down transfers between banks. That’s the pain of three co-founders behind TransferFast.
“The idea was born a year ago when we saw that transfering money between banks takes an unnecessarily long time, creating problems. That’s why we created the service which allows you to transfer money between banks 24-7,” TranferFast co-founder Erki Hendrikson said in a statement.
In practice their “secret glue” is simple, and similar to that of TransferWise, which offers cross-border currency transfers. Money is moved only inside the bank. Clients log on to the service and move money to the TransferFast account within the same bank. In the receiving end money is paid from the TransferFast account within that banking group.
So far, the service is open to Estonian private clients transferring up to 2,000 euros a month. Next year the company aims to launch the service in neighbouring countries across Northern Europe.
A transfer costs 2 euros + 2% of the sum.