In an ever-accelerating world and at a time when technological progress knows no bounds, choosing a wise way to transfer your money abroad can be tricky.

Most often, people do not pay attention and fall under the impact of the banks through which they make transfers. Banks often appear on the transfer market with good offers, providing low fees or even free fees, but in fact, there are hidden costs.

Taavet Hinrikus and Kristo Kaarmann are the masterminds behind Wise- the money-transfer platform that will allow you to send or receive money without breaking a sweat while sitting and enjoying in your favorite place. More importantly - with the lowest fees.

And the birth of the Wise is a story that is unforgettable. Reading it might just make you want to use Wise for your next money transfer.

Without further ado, let's sink into the world of money transfer without boundaries!

The Life Story of Two Estonians

Taavet Hinrikus and Kristo Kaarmann were two kids that grew up during the period when Estonia was occupied by the Soviet Union in the 80s. They were both raised like all children in the Soviet Union, in the spirit of communism.

Taavet Hinrikus was born in 1981 in the Estonian city of Tartu. He comes from an educated family. His mother, Ruth Hinrikus, and his sister, Miriam Hinrikus, are literary experts and critics. His father, Toivo Hinrikus, is a professor at the University of Tartu. Unlike the professions of his loved ones, related to teaching or writing, Taavet fell in love with computer sciences and technology.

Taavet completed his primary and secondary education at the Miina Harma High School in 1999, following his university enrollment. But because of his great love and interest in computer science, he dropped out of the university to start working for Skype. As the first-ever Skype employee, Taavet attained the position of a strategy director, until 2008.

In August 1980, the other founder of Wise, Kristo Kaarmann, was also born in Estonia. As computer technology began to spread, Kristo became more and more eager to uncover all the bits and pieces. Kristo got the first personal computer back in the 90s and as he grew up, he had the opportunity to own several computers like Zedd X, and Commodore, using them to write his first codes. This may sound strange, but in the 90s, computers weren’t as common as they are today.

After completing his mathematical studies at the University of Tartu, Kristo enrolled in a master's studies in microbiology. Despite working as a management consultant at PwC, he was dreaming of professional development in a country with long-established companies.

Due to a mixture of circumstances, and in order to work and develop professionally, they both chose London for their ground zero, professionally speaking.

And indeed, London was the place where wise things happened!

Fluke or Faith?

Many believe that almost every accidental meeting happens for a reason. Taavet and Kristo were both living in London. One sunny day, the both of them met by chance at a London park and thought it might be a good idea to have a cup of coffee together. While talking on different topics, both Kristo and Taavet discovered that they shared the same troubles.

The problem that became obvious for both of them was related to currency. Taavet, for example, was paid in euros, but as a UK resident, he needed GBP to make payments. Kristo, on the other hand, was paid in pounds, but he needed euros instead because he had mortgage obligations back in Estonia. They both needed the currency that the other had, whether by coincidence or not.

After some brainstorming on the matter, Kristo and Taavet came to a solution to the mutual problem. The guys agreed on Taavet depositing euros into Kristo's account, and Kristo depositing pounds into Taavet's account. Both of them agreed that it was the best alternative for avoiding additional fees. Fortunately, they quickly realized that this technique saves them a significant amount of money, and time.

It was not long before they decided to spread the idea and help other people around the world. Hopefully, they did everything in their power to protect people from wasting money on fees unnecessarily. And so, Wise transfer entered the scene of money transfer.

And when it comes to random meetings - some people think that they happen by coincidence, while others believe that their occurrence is predetermined by destiny. All in all, the chance meeting of two people resulted in the creation of a money transfer system that saves time, and money!

The Rise of the Wise Transfer

January 2011 was the most significant year for Taavet and Kristo, mostly because they launched Wise (TransferWise) in London, as a financial technology company.

The Wise's transactions were worth around $10 million in the first year of its establishment. Because the success of Wise was often published in popular journals such as The Guardian, Wired UK, and others, Wise's good name spread swiftly.

Wise succeeded in raising $1.3 million in seed funding from a group of investors including PayPal co-founder Max Levchin, former Betfair CEO, David Yu, and Wonga.com co-founder, Errol Damelin, as well as venture companies like IA Ventures, Index Ventures, IJNR Ventures, and NYPPE.

For some reason, Wise prohibited the use of Bitcoin in 2013. Shortly after that, the independent comparison site, Monito, found Wise to be 85% cheaper on key currency "routes" than the UK's most renowned banks.

Years passed, and Wise attracted new investments from star investors like Peter Thiel, splurging for $6 million, Richard Branson, investing a whopping $25 million, and many more.

As the years went by, so did the value of the money transferred through Wise. Wise attracted consumers with its favorable conditions and minimal transfer fees, resulting in monthly transfers of over one billion pounds.

In 2017 and 2019, two offices were opened, one in Singapore and the other in Brussels. Also, the company changed its name from TransferWise to Wise, in 2021 and launched a new website domain.

Wise raised $292 million in a secondary investment round in May 2019, valuing the company at $3.5 billion. One year later, in July 2020, the company announced a secondary fundraising round of $319 million, raising the company’s value to an astounding $5 billion. The new investor that came aboard Wise was D1 Capital Partners, and the stakeholder, Lone Pine Capital.

This sounds like a happy ending story about two friends who founded Wise, but NO - the story continues...

The Story Continues

Before breaking ground in the realm of money transfer, Wise had faced some fierce competition coming from companies like Qonto, N26, and Payoneer, among many others.

Today, Wise is a very successful and developed money-transfer company that offers various services. Although its headquarters are in London, Wise provides money transfers and transactions in 60 countries, featuring options with 40 different currencies to choose from.

The Wise IPO occurred on June 7, 2021, with shares priced at £ 8 each, and a company valuation of £ 8 billion. Wise’s loyal client base consists of individuals and companies, transferring money throughout the world.

Taavet is the company’s co-founder and Executive Chairman, while Kristo holds the position of co-founder and CEO. Employing 2.243 people, all working towards providing the smoothest money transfer solutions, almost everywhere in the world.

Lastly, the question that intrigues everyone - in the world of countless money transfer platforms, why are people choosing Wise over and over again? And the answer is simple - because it is 8 times cheaper than banks, 3 times cheaper than PayPal and most of the transfers happen in less than an hour.

Launched in London, in 2011, the founders of Wise are writing a story that will not end soon!