Is Veem Safe?

Company size:  

Founded in 2014, Veem is a fintech startup that does B2B money transfers through the blockchain. They employ approximately 150 employees across three offices in the USA (San Francisco), Canada (Ottawa), and China (Shanghai).

They have backing from some of the biggest names in finance. Goldman Sachs, Fenbushi Capital, and the SBI Group are just a few firms who have invested venture capital in Veem.

While there are still in the early stages of growth (Owler.com projected their annual revenues at only $3 million USD), they have generated a great deal of media buzz. Techcrunch lauded them for “providing a platform to ease the international transfer of funds between businesses”, while CNBC placed Veem on their list of 100 startups to watch in 2018.

Regulated By: 

Financial Crimes Enforcement Network (USA)

Conclusion: 

Veem has been backed by some of the biggest names in venture capital. However, they have only been around for five years. Given mixed client reviews, we cannot promote them as a top tier company. However, when you consider they have the backing of top-shelf VC firms and the fact that most client reviews are positive, they aren’t a lousy firm either.

Veem Customer Reviews

Research:

Veem has been reviewed over 500 times on Trustpilot, amassing a rating of 4/5 (Great) and a trust score of 7.2/10. Their reviews are a mixed bag – 4 out of 5 Veem customers rated this service as excellent or great, but a significant minority (18%) had a bad experience.

Conclusion:

Client feedback is mixed. Some report quick transfers and excellent customer service, while others have experienced slow transfers and poor customer service. In many cases, issues were caused by Veem, not the client.

One reviewer has noted a deterioration of performance over the past year or two. While anecdotal, it is worth noting for potential first-time users.

Veem Exchange Rates & Fees

Fees: 

$20 when a client receives a non-local currency, free when they receive their local currency. If the receiver of funds is okay with receiving their home currency, Veem is superior to the banks. But if foreign exchange is needed for the transfer, you should switch the focus towards better alternatives like World First, Currencies Direct or even TransferWise.

Exchange Rates:

Veem does not publicly disclose their exchange rates. Instead, they prefer to negotiate ‘volume pricing discounts’ over e-mail or the phone. According to past customers, spreads range from 1.5%-1.9% off the interbank rate. The larger the transfer, the lower rate you’ll get.

Limits:

Veem has no set minimum or maximum transfer amount. Documentation may be requested for more significant amounts – however, the exact number was not specified.

Conclusion:

The lack of a fee on transfers (when the receiver gets their home currency) and lower exchange rate spreads makes Veem a better option than the banks. However, some money transfer companies offer tighter exchange rate spreads, which could make them a better option.

Veem Global Reach & Service

Research:

• Dedicated Dealer: No
• Offices: USA, Canada, China
• Ways to approach: E-mail, telephone (separate lines available for English and Mandarin speakers)
• Translations: Mandarin
• Accepts clients: In 96 countries; 25 countries can send/receive money, 71 countries can only receive money
• Currencies Handled: 68
• Client reviews: 80% positive, 7.2/10 TrustScore per TrustPilot.com

Conclusion:

Despite only being in business for five years, Veem has offices in three countries, offers 68 different currencies, and sends/receives funds in 96 nations.

Despite progress made to date, their customer service capabilities are not where they need to be. Given they the solution is built around blockchain, speed should really be a significant improvement but with transfers taking longer and client/company relationships deteriorating over the past year, this company may have grown too fast.

Additional Functionalities

Veem offers more than just B2B cash transfers. They also offer the following functions:

– Cloud-based invoicing

– Pay Links (streamline payments from clients)

– A cashback program (Veem rewards)

– Integration with accounting software like Intuit Quickbooks, Xero, etc.

With online tools that make completing accounting tasks easy, Veem is positioning themselves to become an integral part of how small businesses operate.

Their cashback program, a promotion commonly associated with credit cards, is also intriguing. Awarding 5 points per $100 sent, it allows business owners to redeem at a ratio of 100:1 (100 points per dollar). For businesses that move huge quantities of cash, this can add up to a neat sum quickly.

Conclusion:

Many money transfer companies offer a narrow range of services. Veem has broken this mold, offering accounting tools designed to encourage the adoption of this service as a central part of a company’s infrastructure. Being a technology focused company it understands the value of a deeper integration with its clients.