PeerFX is a venture looking to work around the “middle-man” fees that banks charge on foreign exchanges. $3.1 trillion is exchanged daily in on currency exchanges, and PeerFX’s goal is to reduce the fees paid in order to exchange money between currencies. Florence Leung of PeerFX presented the companies case at the 24th Angel Forum at the SFU Harbour Cente in Vancouver this Monday.
PeerFx works by acting as the middleman in a currency exchange, offering lower fees to individuals and small businesses. By adopting a peer to peer model, PeerFx said they are able to eliminate the bid-ask model commonly used in FOREX and give customers the median rate, also known as the “Interbank” rate. At first the company would target the business sector, then move to individual users at a later date.
PeerFX pointed to Prosper.com as an example of a company that follows a similar model, working to facilitate personal loans for individuals and small business.
The PeerFX founders feel they are an excellent acquisition target, particularly for companies like Amazon.com and Ebay, who have already proven they will buy online exchange companies like Paypal if it helps them provide value to their customers.