This is usually achieved by something called Pre-funding. It is a concept by which the Sending company, pre-funds foreign currency with the beneficiary country’s banks.

For example if money has to move from UK to Philippines. Transferwise will maintain a pre-funded account with say Bank D’Oro (BDO) in the Philippines.

Once TW gets a confirmation of the payment in the UK, TW instructs BDO to release the equivalent amount in PHP (Philippines Pesos) into Beneficiary’s account.

In this case, Transferwise is using its own balance placed in beneficiary country banks to fast-track the transfer.

The pre-funded accounts are topped up after every 3-5 days depending on the volume of transfers for each specific corridor.


  1. Wahib Ul Haq

    Hello. You have explained it way better and more eloquently. But it’s just good to know that I got it right. I was also curious to know how it works and if it could be considered a “legit remittance”.


    I’ll mention your answer as well to support my conclusion 👍

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