Problems Paying by Bank Transfer in TransferWise: A Qualitative and Quantitative Analysis

This report presents a qualitative and quantitative analysis of the problems faced by customers while paying by bank transfer in TransferWise. It includes a PESTLE analysis, SWOT analysis, and Porter's five forces analysis. The report also discusses the company's financial success, its multi-currency account, and the challenges it faces from existing competitors. The research is based on TransferWise, a privately held, venture capital-backed startup founded in 2011 in Estonia.

Literature Review

Contents
ABSTRACT....................................................................................................................................................5
INTRODUCTION...........................................................................................................................................6
PRESENTATION OF DATA.............................................................................................................................6
PRESENTATION OF MODULES AND THEORIES.............................................................................................9
DISCUSSION...............................................................................................................................................13
CONCLUSION.............................................................................................................................................13
REFERENCES..............................................................................................................................................14

ABSTRACT
When you use your Wise card to make a payment, the transaction may display as pending at
first. This indicates that the merchant has reserved the funds from your account but has not yet
claimed them. The merchant will normally collect the funds from your account within 3–4 days.
When they do, the status of the transaction will be changed from pending to completed. We can't
always detect if a payment was cancelled. This might be due to issues with the payment terminal
or an internet connection. If this occurs, the money will remain in your account as pending. The
money will be returned to your account in 8 days for the majority of payments.

INTRODUCTION
This research based on the “Problems paying by bank transfer” in Transfer wise company during
the transaction. The reason of examine research on this topic when pay by bank transfer that time
many customer face problems from one bank to other bank. Ensure sure they bring us the
quantity of cash whenever users set up the exchange. They'll inform them precisely how much to
transfer, as well as the entirety of personal bank information. Whenever customer pays us a
contribution, the identity on the financial institution from which the funds are arriving must
reflect the identity on Wise. The one and only exemptions are when customer pays from a trust
account or when you buy as a company using their Wise Business profile. In this report consist
of qualitative and quantitative data that present the problem. Wise has joined the financial system
in a very strong place in many aspects. It has been successful over many decades, and its
consumers operations expanded by more than 50% CAGR during 2018 and 2020. Nevertheless,
their levels of expansion have recently slowed, particularly in places where it is well entrenched,
including such Europe. A new comprehensive research on Wise by FXC Research examines the
company's finances in detail, noting how much smaller its taking percentages are than those of
several other companies. However, considerably lower take percentages and slower upper
development will put a damper on its total sales development. This will be a problem for a firm
that now has to maintain significant growth in order to increase its capitalization and enhance
competitive dominance.
PRESENTATION OF DATA
Transferwise is a privately held, venture capital-backed startup founded in 2011 in Estonia. The
announcement in September 2017 of an approaching investment round shed light on its recent
success, where it is expected to generate $100 million in sales in 2017 and controls a 10% share
of the UK money transfer industry. With $117 million already received, its worth is expected to
reach $1.6 billion in its next funding round, and the company is currently profitable.
Transferwise appears to have reached a tipping point, and investors have consistently backed it:

Wise's multi-currency account is a godsend in this sense, but for most of us with relatively
simple foreign transaction requirements, this account eliminates all of those impediments. Wise's
cross accounts (formerly known as the TransferWise international accounts) is analogous to
having many abroad bank accounts. It allows users to store money in over 50 different
currencies. Consider the following scenario: they have British pounds (GBP), Euros (EUR), and
Australian dollars (AUD) in their Wise account. If they wish to transfer money to a euro account,
Wise will automatically utilize their euro balance. If they send more euros than they have, Wise
will convert some of their other currencies to make up the gap.
Whether you paid via bank transfer, we provide you with a reference number as well as
the rest of our bank information. This information assists us in determining which contribution is
still yours. While establishing a transaction from your bank account, enter the number in the
reference area. If you failed to include the reference number, your transfer may be delayed while
we look for your funds. You must attach a proof of payment document to assist us in locating it.
Once you've submitted your evidence, someone from our team will contact you. Please sure you

write us the exact amount of money when you set up a transfer. We'll inform you precisely how
much to transfer, as well as the rest of our bank information.

PRESENTATION OF MODULES AND THEORIES
PESTLE Analysis
Political: A stable and pleasant business climate with anticipated revenue growth tendencies is
provided by high political security. Whenever there is political uncertainty, nevertheless, it
prevents investment and affects consumers' belief in macroeconomic and, as a result,
organizational efficiency. TransferWise Making Sense of Money Transfer. is currently available
in a number of regions, one with its own set of political concerns. Heightened tensions and
uncertainties in the international political climate can have an impact on the development of the
golden business and restrict the chances for growth open to TransferWise.

Economical: A country's economic development has a direct impact on organizational
effectiveness. Emerging economies provide TransferWise Thinking Clearly of Money Transfer
with several prospects for expansion. Therefore, it is critical to comprehend the technology and
industrial stage. Resulting from market concentration, accessing established sectors might be
more difficult than entering businesses in the stage of development. Furthermore, the amount of
money invested on key infrastructure investment by the host nation governments has an impact
on TransferWise Transfer business .'s success. A well-developed network encourages economic
climate and boosts the possible expansion of the jewelry industry in the particular country.
Social: The buying power of money influences consumer spending habits. It is critical to
understand customers' preferences and purchase habits by researching and anticipating their
spending power depending on pertinent economic factors. Taking the supplied commodity is
regarded a status signal in certain communities, whereas others consume the same things for
utilitarian reasons. TransferWise should devote effort to comprehending the purchasing reasons
and societal trends that shape consumer behaviour. To assess local customers' judgement of
international items, TransferWise should also seek to grasp the importance of consumer
exceptionalism and evaluate the provenance influence. Finally, when customers wanted
experiencing services over standard product offers, TransferWise could research their number of
possibilities and concentrate mostly on improving consumer journey.
Technological: To keep ahead of the curve, TransferWise should thoroughly examine continuing
technology advances. Evaluating 5G and assessing its capacity to create beneficial company
performance via greater customer experience, faster frequency, and extended accessibility should
be prioritized. Such technological developments have the potential to change the sector and
rewrite the performance standards for market participants. Furthermore, the growth and
maturation degree of technologies in the relevant market must be considered. TransferWise can
boost its customer base by concentrating on new technology advancements by targeting areas
where scientific progress has not yet achieved maturation.
Legal: TransferWise must adhere to worker health & security legislation, since certain nations
have stringent restrictions in place to safeguard labour safety. TransferWise's morality duty is to
provide a safe working environment for its employees. Furthermore, anti-discrimination
regulations (such as employment equity) must be considered carefully while designing human

resource strategies, as discriminatory claims against employers tarnish the company identity and
undermine the capacity of businesses to recruit and retain.
Environmental: Green/eco-friendly items are becoming increasingly popular. TransferWise may
grab the moment by implementing green business practises in order to gain the confidence of
consumers. The focus placed by government regulators on assuring comply with applicable
standards is affecting product innovation goals. It is necessary for TransferWise to concentrate
and concentrate on promoting the eco-friendliness of their goods over traditional value
arguments.
SWOT Analysis
Strength: Wise has recently demonstrated good financial success with increased investment
support. The company's present net value is $5 billion, demonstrating that the market has
significant faith in the company. In 2019, and 2020, the brand made £179 million and £302.6
million in income, correspondingly. Its sales increased by 43% in the first quarter of 2021 as
compared with the same month in 2020. A brand's financial success is essential to its
development and savings product. Each business requires finances in order to develop or develop
in the marketplace.
Weakness: The brand's corporate ownership is one of the factors limiting its expansion. It
restricts its property ownership base's control over resources. By releasing information, the
company gains access to government funds, allowing it to engage more in innovative products
and its planned expansion. Collecting additional finances will boost the company's potential to
expand.
Opportunity: Online money transfers take place practically anywhere on the planet. Wise, as a
result, has a huge opportunity all over the world. Wise has the chance to position itself to be the
digital transfer of money and converting business of option for customer needs all around the
world. This expansion might greatly boost the firm's market penetrating range, and also amounts
of cash and so sustainability.
Threat: Existing companies like as Paypal fight with Wise for the same clients in the online
payment market. Many of these established businesses have vast available resources, which they

utilize to enhance their financial tactics in order to recruit more consumers and compete more
effectively. This implies that Wise actually loses clients to competition. In addition, the brand
suffers indirectly rivalry from other firms in the sector that sell comparable items.
Porter’s five forces
The threat of new entrants: New entries into a business provide new possibilities and the option
to expand market share and total pie share, putting strain on pricing, expenses, and the
commitment prices required to play. TransferWise will indeed be ready competition by use
current abilities and financial flows, especially when new competitors spread from diverse
industries into the main business.
The threat of substitute products: From the customers ’ perspective, there are certain distinctions
in how various items in the same or comparable categories are utilized, but many consuming
selections are based on individual preference, making products open to the danger of
alternatives. The risk of replacements is rated as somewhat high altogether.
Bargaining power of buyers: The purchaser for TransferWise is not generally the organization
that takes the goods, but instead the set of consumers that acquire the item from TransferWise
either to redistribute it any further, retailer it, or even absorb it. TransferWise's primary
purchasers, which account for the majority of trading volume, are superstores and groceries, and
also individual merchants and distributing agencies to online products. Supermarket chains, as
well as several chain restaurants that are consolidated, strengthen price advantage.
Bargaining power of supplier: Vendors can also be included into the judgment and company
processes. Furthermore, the purchasers place a premium on the reliability of the suppliers and
commodities. Nevertheless, in an industry with a number of vendors, TransferWise can move to
a new provider at any moment without incurring any commercial expenditure. Suppliers' average
negotiation strength is rated as modest.
Competitive rivalry: Focus on future research in order to find market niches and add distinctive
elements to its goods. This will strengthen its defenses towards competing forces and their
activities. Concentrate on marketing and promotion methods to develop a solid and relationship

with its customers. Emphasize on conquering new markets within the same area and other
countries to minimize capital concentration in a free trade area.
DISCUSSION
Transferring money overseas has typically been a time-consuming and costly procedure,
represented by just not networks of intermediaries, tedious paperwork, and additional fees.
However, advancements in the market over the last few years imply that individuals and perhaps
even small-to-medium-sized businesses may now benefit from quicker, simpler, and valuation
overseas money transfer services. During 2000, the international money transfer ("remittances")
industry has grown at a CAGR of 10.4 percent. Every year, $530 billion is moved. Competition
from the G20 and the UN to cut prices for communicators has culminated during year decreases
in transaction cost from 2008. Sending money overseas currently costs an average of 7.21
percent. The United States provides the most income, Currently receiving far more funds, and
China has the most balanced balance of transmission and reception. Annually, Western Union
handles more than $70 billion in payments, which is more than double the amount processed by
its largest rival, UAE Interchange. Transferwise, a 6-year-old Fintech "newcomer," has the
highest volume from a Fintech "new player."
CONCLUSION
Money transfer operators (MTOs) are financial organisations (but not always banks) who
conduct cross-border fund transfers through their own system or through connection to some
other bridge banking system. Because of the intricacies of various currencies and financial
institutions, moving money from one nation to another is not the same as sending money inside
the same country.

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