TransferWise customers can soon send money out of Malaysia with ‘no hidden mark-ups’

Fintech company TransferWise said its Malaysia customers would soon be able to conduct transfers from the country at “real, mid-market” exchange rates using its remittance service.
The Straits Times

Global financial technology (fintech) company TransferWise has secured a remittance license from Bank Negara Malaysia, which will make Malaysia the fourth in Asia – after Singapore, Japan and Hong Kong – to have the service.

In a statement released on Monday (June 18), TransferWise – which claims to offer international transfers at “real” exchange rates and “with no hidden fees” – said that the company would be launching remittances from Malaysia this year.

The service currently only allows customers to send money to but not from Malaysia.

The UK-based company noted that in the past year, the top five sources of remittances to Malaysia were Australia, the UK, Singapore, the US and the Eurozone.

The approval from Malaysian authorities now allows it to make transfers from Malaysia to 71 other countries at the “real, mid-market” exchange rate, which it defines as the rates that can be found on Google or Reuters.

It added that the transfers can be done without the “hidden” exchange rate mark-ups usually charged by banks and remittance providers.

According to TransferWise, the license also allows its Malaysia customers to open accounts by simply submitting documents online via the company’s app or website, using electronic Know your Customer (eKYC) systems instead of having to do it in person at a physical branch.

TransferWise’s head of Asia-Pacific expansion, Venkatesh Saha, added that the company will be working with Bank Negara Malaysia to launch more financial services, including its multi-currency e-wallet Borderless, which allows money to be transferred and held in 49 different currencies.

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