Transferwise recently introduced borderless banking. The big advantage is that now you can have bank accounts in multiple currencies. The vast majority of people I know require a combination of accounts in these three major currencies:
- US Dollars (USD)
- Euro (EUR)
- British Pounds (GBP)
The problem so far has been the simple fact that it’s unnecessarily and frustratingly hard or downright impossible to open a bank account in another country than the one your business is based in.
So for example if your business is based in the UK, but you make all your online sales in USD, you would probably want a USD account so that you would be able to transfer money to it without losing on exchange rates.
This problem is now solved with Transferwise’s borderless banking system. Once you open an account with Transferwise, you will be able to apply for borderless banking and select the accounts you need (USD, EUR and GBP available at the moment). Within two days you will have them in place and you can then start receiving client payments to these accounts.
I’ve written about the loss of money due to currency conversion when using PayPal before, so I was hoping that Borderless Banking would solve this issue once and for all. However, after checking with PayPal, they have informed me that at this stage they don’t support virtual bank accounts, which is what Transferwise’s Borderless banking solution is classified as.
I am still waiting for a response from 2Checkout to see if they support withdrawing to Borderless Banking, and will update the post when I get a reply.
It would also be interesting to know what Stripe are doing, so if any of my readers wants to try that, do leave a comment with the results.
You should be able to use Borderless Banking with other services that support bank wire transfers, such as affiliate systems like Avangate and Shareasale.
This is a great step in the right direction. Revolut released something similar earlier this year, but Transferwise’s solution is better. The last step now is to be able to use this type of account with PayPal for withdrawals.