Kristo Kaarmann & Taavet Hinrikus
University of Tartu / Tallinn University of Technology, Estonia · Wise (TransferWise)
Two Estonians Who Saved the World Billions in Bank Transfer Fees
25 February 2026
Kristo Kaarmann and Taavet Hinrikus were both Estonians living in London. Kaarmann was paid in pounds but had an Estonian mortgage in euros. Hinrikus earned euros from Skype but spent in pounds. Every month, both lost money to hidden bank transfer fees.
The Peer-to-Peer Solution
Their solution was elegant: instead of both paying bank fees, they would transfer money to each other's local accounts at the real exchange rate. They built Wise (originally TransferWise) to automate this peer-to-peer model at scale.
Taking on the Banks
Banks and brokers actively opposed Wise, which exposed their hidden fee margins. But the product was dramatically cheaper — often 6-8x less than traditional banks — and word spread fast.
£8 Billion London Listing
Wise listed directly on the London Stock Exchange in 2021 at an £8 billion valuation. The company now processes over $12 billion per month and serves 16 million customers. Kaarmann and Hinrikus turned a personal frustration into one of Europe's most important fintech companies.
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