CurrencyFair, an online market for foreign exchange transactions, is completing a funding round of €670,000 raised through a combination of angel investors and Enterprise Ireland.
This is the Dublin company’s fourth investment round, having previously raised €980,000 privately.
The company hosts the world’s first-ever person-to-person foreign exchange marketplace. Since launching in May 2010, CurrencyFair’s customers have saved more than €1m when comparing their rates with typical bank exchange rates.
CurrencyFair clients are able to exchange straight away with other customers, or place their own trade on the marketplace at a better rate and wait to see if another client matches them.
This unique business model enables the company to offer compelling value for retail customers and attractive unit economics, its founders say. Banks and brokers usually require telephone or branch orders and will price discriminate.
CurrencyFair’s customers are exchanging at rates usually only otherwise available to multinationals and money market professionals dealing in millions, no matter how small the transaction. In some cases, users have even been getting a better rate than the interbank midpoint.
"We’ve all seen how the peer-to-peer model has revolutionised betting. Now, after several years of work, we’ve applied that peer-to-peer concept to currencies," says CurrencyFair founder Brett Meyers. "But, of course, here there is no gambling and the only organisations that risk losing are the banks and specialist brokers. CurrencyFair challenges their lucrative profiteering and hands it back to businesses and consumers. "
Close to €35m has been traded on the site since it went into business.