Wise, formerly known as TransferWise, has revolutionized the way people send money across borders. The app is primarily designed for sending and receiving international payments without the high fees associated with traditional banks or other money transfer services. What sets Wise apart is its ability to offer the real exchange rate without the added markup, which can save users a significant amount of money.
The platform supports sending money to over 80 countries and allows for transfers in multiple currencies. Wise also provides users with a “multi-currency” account, which allows individuals to hold and manage funds in different currencies. For businesses, the app offers the ability to send bulk payments and manage international payroll.
Wise’s mobile app enables users to initiate and track payments in real-time. The platform provides transparency with clear breakdowns of fees and exchange rates, ensuring that users understand exactly what they’re paying for. Additionally, users can set up recurring payments or use the app to convert currencies for international purchases or investments.
Key Features:
- Real Exchange Rate: Wise uses the real exchange rate, the same one you see on Google or XE, without a hidden margin.
- Low Fees: The fees are a fixed percentage, based on the country and currency, making the app one of the most cost-effective money transfer services available.
- Multi-currency Account: This allows users to hold balances in various currencies, making it easier for frequent international travelers or expats to manage their finances.
- Instant Transfers: Many transfers with Wise are completed within hours, and the app sends real-time notifications as the transfer progresses.
- Bill Payment: In some countries, Wise users can also pay bills directly through the app.
Pros:
- Affordable: Wise’s fees are much lower compared to traditional banks and other services like Western Union and PayPal. This is particularly advantageous when transferring large sums.
- Speed: International transfers are processed quickly, with many being completed within a few hours.
- Transparency: Wise is transparent about its fees and exchange rates. Users can always check exactly what they will receive before confirming the transaction.
- Convenient Multi-currency Account: The app allows users to hold balances in different currencies, avoiding the need for currency conversion when making international purchases or investments.
- Trusted Platform: With millions of customers worldwide and over a decade of operation, Wise has built a solid reputation for its reliability and security.
Cons:
- Limited Availability for Some Countries: While Wise operates in over 80 countries, there are still some regions where it does not provide services. Users in those areas may need to look for alternatives.
- Limited Cash Pickup Locations: Unlike some other services, Wise does not offer cash pickups. All transfers are done electronically, which can be an inconvenience for individuals who prefer to receive cash.
- No Credit Card Payments: Wise does not allow payments through credit cards, so users must use bank accounts or debit cards, which may not be convenient for everyone.
- Currency Restrictions: Certain currencies may have higher fees or longer processing times, which could be an issue for those regularly transferring specific currencies.
Cost:
Wise operates on a fee structure that varies depending on the amount being transferred, the destination country, and the type of transfer. Generally, its fees are a small percentage of the amount being sent, often between 0.5% and 2%. The exchange rate used is always the mid-market rate, which is the most accurate and favorable rate available.
Best For:
Wise is ideal for individuals and businesses that need to send money across borders without incurring excessive fees. It is particularly beneficial for frequent travelers, remote workers, freelancers, expats, and businesses dealing with international transactions. It is also an excellent choice for anyone who wants a straightforward, cost-effective way to convert currencies without the usual high markups that banks or traditional money transfer services impose.
Why It’s Worth Considering:
One of the primary reasons to choose Wise over other options is its focus on providing fair and low-cost international transfers. Unlike traditional banks, which often add hefty margins to the exchange rate, Wise’s transparency makes it easy for users to understand exactly how much they’re paying and what they’re receiving. This can result in significant savings, especially when transferring large sums of money. Additionally, the multi-currency feature provides flexibility for those who need to manage money in more than one currency.