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TransferWise wins restricted banking licence in Australia

TransferWise wins restricted banking licence in Australia

TransferWise has been granted a licence to gain direct access to Australia's real-time payment system by the country's Prudential Regulatory Authority.

Under the licence, TransferWise will be able to provide purchased payment facilities, as a "limited authorised deposit-taking institution".

The UK-based currency transfer company will join PayPal as the second non-bank to gain direct access to Australia's real-time payments network. TransferWise says it now intends to apply for a settlement account with the Reserve Bank of Australia.

The move will reduce TransferWise's cost of doing business in Australia, freeing up funds otherwise paid to intermediaries to connect to the network.

TransferWise was the first non-bank to get access to the UK's faster payments system, including a settlement account with the Bank of England.

The company is also looking to be one of the first non-banks to connects to the Singapore Fast network, after the country's central bank today confirmed that it would open up direct access to the nation's real-time payment plumbing to non-bank financial institutions (NFIs).

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