London-based money transfer company TransferWise has opened for business in Australia, promising very low fees on overseas transfers thanks to an innovative use of peer-to-peer technology.Industry researcher TNS has calculated that TransferWise's fees are around one-tenth of bank transfer fees and cheaper than rival specialists, such as OzForex and Currency Fair.According to TNS, a Commonwealth Bank customer would spend a total of around A$66 transferring $1000 to the United States. The TransferWise charge is $6.50 (this data was compiled in October).A big part of the reason is that the funds being "transferred" never leave the country of origin.The company handles multiple currencies in different markets and when it gets an order for a transfer it matches from its book. TransferWise applies the mid-market exchange rate with no mark-up.For example, an Australian customer wanting to send money to the US will place an order; rather than transferring the money TransferWise finds the money from a client in the US to complete the transfer. The Australian dollars will then be used to complete a "transfer" of funds to Australia.TransferWise co-founder Taavet Hinrikus said that on some transfer routes, such as the United Kingdom and the euro market, there was plenty of liquidity and the company could use its matching process to complete the majority of customer orders.On less busy routes the company uses banks to supply liquidity. The company's Australian banking partner is Macquarie Bank.After four years of operation in the UK market TransferWise has a five per cent share.The company's focus is on the consumer market. Hinrikus said it would look at the business market in future.TransferWise will offer 50 routes out of Australia initially. It has yet to establish a presence in the Pacific. China is on the horizon.Hinrikus said speed was as much a factor in the success of the business as cost. "We do most transactions in a day," he said.