Where does the money for transfer payments come from?

It depends: It is either pre-funded, i.e. arrangements are made to have enough money on the other side, so that when a payment is made, the money is taken out of the available balance and paid for. The other arrangement is credit (which has a counter party risk factor higher than the pre-funded one). In both cases, […]

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How can TransferWise send money abroad very fast?

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 […]

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