Three years following its foundation, neon, the Zurich based fintech startup with its mobile banking solution is taking off at full speed. After cutting out all foreign fees and exchange rate surcharges for card payments early this year, the startup is now enabling cheaper and faster international transfers. The company achieved this strategic move through the partnership with TransferWise, the London based fintech startup with more than 7 million customers worldwide who send over $5 billion per month through its platform to over 59 countries. TransferWise is a specialist in foreign transactions.
Neon customers now have the opportunity to conduct foreign transactions directly through the neon app, in which the Transferwise functions are embedded. With just one click, the user automatically creates a TransferWise account to complete the process. The app provides current exchange fees as well as transaction fees to the customers, thereby increasing transparency. To this end, customers can send money in 20 currencies to 40 countries. Compared to traditional banks, neon promises to offer a cheaper option whereby the user will be able to save up to 5 per cent in transaction fees.
For this joint service, both companies have chosen the Hypothekarbank Lenzburg as their open banking partner in Switzerland to eliminate intermediary banks that slow down the transaction process. According to neon, 25 per cent of all transfers arrive within a few minutes.