Monzo, a challenger bank, has announced a partnership that it has established with Transferwise, a fintech unicorn. The pair will work together on international payments.
The new partnership is the second big tie-up for Transferwise during the recent weeks. Earlier, it has confirmed that it was working with BPCE Groupe, the second-largest bank of France.
The companies said today that the partnership will mean that the customers of Monzo can make international payments after the challenger bank integrated with the API of Transferwise to help the customers send money in 16 different currencies straight from the customer’s Monzo app.
The international payments feature will be rolled out to the 750,000 customers of Monzo over the coming five weeks. Those who are using Android and iOS devices started to see them as one of the options in their payments tab yesterday.
The chief executive of Monzo, Tom Blomfield, stated: “We’ve been eager to bring international payments to Monzo customers for a while. Thousands of our customers have friends and family living abroad, and they shouldn’t have to pay over the odds to send them money.”
Moreover, Transferwise says that over 3 million people use it to transfer more than £2 billion every month. It says that it also has partnerships with N26, a German challenger bank, and LHV of Estonia.
The tie-up with the BPCE of France is set to go live at the start of the coming year.
Kristo Käärmann, the CEO and co-founder of TransferWise, said that the new partnership was “a perfect fit” as Monzo shared the passion of his company for “bringing fairness and transparency to the banking sector.”
Käärmann stated: “Monzo is our first UK bank partnership to go live, and joins a suite of European partners dedicated to offering their customers a better service, including French bank BPCE and Germany’s N26. Together, we’re setting new standards for retail banking, creating smart, low-cost services that truly meet the hopes of the modern consumer.”
In 2015, Monzo was established. It has received its full banking licence in April 2017. Last month, it announced that customers will now be allowed to use their Monzo cards with Apple Pay after releasing a support for Android Pay back in October.