WeSwap

About WeSwap

WeSwap operates as a peer-to-peer currency exchange platform, aiming to provide a more cost-effective travel money solution compared to traditional banks and exchange bureaus. The company was founded in 2010 by Jared Jesner and Simon Sacerdoti and, after a beta phase, fully launched in 2015. The founding idea stemmed from Jesner's experience as a currency derivatives trader at JP Morgan, where he observed the significant gap between interbank exchange rates and the rates offered to consumers. This insight, combined with his subsequent experience in global payments at Shell, led to the creation of WeSwap. Sacerdoti, a qualified chartered accountant with a background in corporate finance, brought the expertise needed to commercialize the concept.

The business model centers on directly connecting travelers with opposite currency needs. Users load their domestic currency onto a WeSwap account via an app or online platform. The platform's technology then matches them with other users to swap currencies at the real mid-market exchange rate, bypassing many of the intermediary costs associated with traditional providers. Revenue is primarily generated from small, transparent fees on these swaps. For a seven-day swap, the fee is 1%, with options for faster swaps at slightly higher rates. If a direct peer-to-peer match isn't available, WeSwap steps in to facilitate the exchange for a slightly higher fee. Additional revenue streams include ATM usage fees and a percentage of the interchange fee charged to merchants when the associated card is used.

The core product is a multi-currency account paired with a prepaid Mastercard, which allows users to hold up to 18 different currencies and spend abroad without incurring high fees. The service is designed for a broad range of travelers, from holidaymakers and families to business travelers. The company also developed "WeSwap Connect," an API that allows travel industry partners, like online travel agents, to integrate WeSwap's services into their own booking flows. Over the years, WeSwap expanded its product portfolio to include services like travel cash delivery and buyback options. The company experienced significant growth, raising over $35 million in funding and reaching over 500,000 users by mid-2019. However, the global travel collapse caused by the COVID-19 pandemic severely impacted the business, leading to it entering administration. In late 2021, the business was acquired by Blackthorn Finance Group in a pre-pack deal, preserving the brand and jobs. More recently, there have been developments regarding the cessation of the WeSwap card programme as of October 2024, with the card issuer Monavate managing customer fund refunds.