Sending money across borders has long been a process filled with complicated fee structures and unfavorable exchange rates. Traditional banks and many transfer services often add hidden markups, leaving you with less money than you started with. This is the problem Wise, formerly known as TransferWise, set out to solve. It has since grown from a simple money transfer service into a comprehensive global financial platform for millions of individuals and businesses.
This guide will explore everything you need to know about Wise. We will cover its history, its core features like the multi-currency account, and its commitment to transparent, low-cost fees. You will see how it stacks up against competitors, hear from real users, and get answers to the most common questions about the service. By the end, you will understand how Wise is making international finance faster, cheaper, and more transparent for everyone.
1. The Story of Wise: From TransferWise to a Global FinTech Leader
Wise was founded in 2011 by two Estonian friends, Kristo Käärmann and Taavet Hinrikus. They were both living in London and facing a common problem for expatriates: losing money on international transfers. Taavet was paid in euros but needed pounds to live in London, while Kristo was paid in pounds but needed to send euros to Estonia to pay his mortgage.
They realized they were both losing significant amounts of money to bank fees and poor exchange rates. Instead of using their banks, they devised a simple system. Each month, Taavet would deposit euros into Kristo’s Estonian bank account, and Kristo would deposit the equivalent amount in pounds into Taavet’s UK account. They used the mid-market exchange rate—the real rate you see on Google or Reuters—to ensure fairness. This peer-to-peer system saved them thousands and became the foundation for their business.
They launched TransferWise with a mission to make international money transfers cheap, fair, and simple. The company’s core promise was to always use the mid-market exchange rate and charge only a small, transparent fee. This disruptive model quickly gained traction, attracting customers tired of the opaque and costly services offered by traditional banks.
In 2021, the company rebranded from TransferWise to Wise. This change reflected its evolution beyond just money transfers. Wise had expanded its offerings to include a multi-currency account, a debit card for international spending, and powerful tools for businesses. The new name signified a broader mission: to build “money without borders”—a world where money moves instantly, transparently, and conveniently.
Today, Wise serves over 16 million customers, processing billions of dollars in cross-border transactions every month. It remains a leading force in the fintech industry, continuously challenging the status quo of international banking.
2. Key Features and Benefits of Wise
Wise offers a suite of products designed to solve the challenges of managing money internationally. Its features are built on the principles of transparency, low cost, and convenience.
The Wise Multi-Currency Account
At the heart of Wise’s offering is the multi-currency account. This is a powerful tool for anyone who lives, works, or travels abroad. It allows you to hold and convert money in over 40 different currencies in a single account. Opening an account is free, and there are no monthly subscription fees or minimum balance requirements.
A key benefit is the ability to get local bank details for up to 9 currencies, including USD, EUR, GBP, AUD, and CAD. This means you can receive payments from these countries just like a local, without incurring international receiving fees. For example, a freelancer in the US can get paid by a European client in euros directly into their Wise account, then convert the funds to dollars at the mid-market rate.
Transparent Fees and the Mid-Market Exchange Rate
Wise’s biggest differentiator has always been its transparent pricing model. Unlike banks and many other services that hide costs in the exchange rate, Wise is upfront about its fees.
- Mid-Market Exchange Rate: Wise always uses the mid-market exchange rate for conversions. This is the real, midpoint rate between the buy and sell prices on the global currency markets. It’s the rate you see on independent sources like Google, and it contains no hidden markup.
- Low, Transparent Fees: For each transfer or conversion, Wise charges a small, variable fee that starts from as low as 0.41%. This fee is always shown upfront, so you know exactly how much you’re paying before you commit to the transaction. The cost depends on the currencies involved and the payment method you choose.
This transparency ensures you get more of your money where it needs to go. On the Wise website and app, a simple calculator shows you the total fees and the final amount the recipient will get, often alongside comparisons to major banks to highlight the potential savings.
The Wise Debit Card
Linked to the multi-currency account, the Wise debit card lets you spend money abroad without the high foreign transaction fees that traditional bank cards often charge. You can use the card in over 170 countries, wherever Mastercard or Visa is accepted.
When you spend with the Wise card, it automatically uses the funds from the corresponding currency balance in your account. If you don’t have the local currency, Wise will automatically convert the amount from the balance with the lowest conversion fee, always using the mid-market rate. The card also allows for free ATM withdrawals up to a certain limit each month.
Fast and Secure Transfers
Speed is another major advantage of using Wise. While traditional international bank transfers can take several business days, many Wise transfers are much faster. According to Wise, over 70% of transfers arrive in under 20 seconds, and 95% are completed within a day.
Wise is regulated by financial authorities around the world, including the Financial Crimes Enforcement Network (FinCEN) in the US and the Financial Conduct Authority (FCA) in the UK. The company uses a security practice called safeguarding, which means your money is held in separate, low-risk accounts with established financial institutions, completely apart from Wise’s own operating funds. This ensures your money is protected.
3. The User Experience: What Customers Say
Wise has built a loyal following largely due to its simple, intuitive user experience and strong customer focus. The platform is designed to be straightforward, from signing up for an account to sending your first transfer.
The website and mobile app are clean and easy to navigate. Setting up a transfer takes just a few steps: enter the amount, choose the currencies, provide the recipient’s details, and select a payment method. Throughout the process, the fees and exchange rate are clearly displayed, eliminating any guesswork. Users receive real-time updates and can track their transfer’s progress at every stage.
This focus on simplicity and transparency is consistently reflected in customer testimonials. On review platforms like Trustpilot, Wise maintains a high rating with hundreds of thousands of reviews.
Here are some common themes from user feedback:
- Cost Savings: Many users highlight the significant savings compared to their banks. One user on Trustpilot noted, “I have been using Wise for over 5 years to transfer funds monthly from the USA to Europe. My experience with Wise is outstanding. Much lower cost than with regular bank transfers.”
- Speed: The speed of transfers is a frequent point of praise. A customer transferring from the US to India shared, “It is so quick. It took only 16 seconds to send money to India from USA.”
- Ease of Use: The simplicity of the platform is a major draw for both new and long-term users. Many describe the process as “seamless,” “straightforward,” and “hassle-free.”
These testimonials underscore the real-world impact of Wise’s mission. For digital nomads, international students, businesses paying overseas suppliers, and families sending money home, Wise provides a reliable and cost-effective solution.
4. Wise vs. The Competition
The international money transfer market is crowded, but Wise stands out due to its unique pricing model. Here’s a look at how Wise compares to some other popular services.
Wise vs. PayPal
PayPal is a global giant with a massive user base, making it a convenient option for sending money to other PayPal users. However, it can be an expensive choice for international transfers. PayPal charges a currency conversion fee, which is a percentage markup on the exchange rate, in addition to a transfer fee. This markup can be 3-4%, making transfers significantly more expensive than with Wise. Wise’s combination of the mid-market rate and a small, upfront fee is almost always cheaper for cross-currency payments.
Wise vs. MoneyGram
MoneyGram is a traditional remittance service known for its extensive network of physical agent locations, allowing for cash pickups. This is a key advantage for recipients who may not have access to a bank account. However, this convenience comes at a cost. MoneyGram, like most traditional services, makes money from both transfer fees and a markup on the exchange rate. While it serves an important purpose for cash-based transfers, Wise is the more cost-effective option for bank-to-bank transfers.
Wise vs. Revolut
Revolut is another modern fintech company that offers multi-currency accounts, international transfers, and debit cards. Like Wise, it provides a user-friendly digital platform. Revolut operates on a tiered subscription model. Its free plan offers a limited amount of fee-free currency exchange each month, after which fees apply. Paid plans offer higher limits and more features. The main difference lies in the fee structure. Wise has a consistent pay-as-you-go model with a transparent fee for every transaction, while Revolut’s costs depend on your subscription plan and usage. For users who make frequent, smaller conversions, Revolut’s free tier might be appealing, but for larger or more regular transfers, Wise’s transparent fees are often more competitive.
5. Wise in Numbers: Statistics and Impact
The impact of Wise can be seen in its impressive growth and the sheer volume of money it moves across borders. These statistics highlight the company’s scale and its role in reshaping global finance.
- Customer Base: Wise serves over 16 million personal and business customers worldwide.
- Transaction Volume: The platform processes over $16 billion in cross-border payments every month.
- Global Reach: Customers can send money to over 160 countries and hold balances in more than 40 currencies.
- Business Adoption: Over 700,000 businesses use Wise to manage international payments, pay employees, and receive funds from clients.
- Cost Savings for Customers: Wise estimates it saves its customers over $1.5 billion a year in hidden fees compared to traditional bank transfers.
Case Study: A Small Business Goes Global
Consider a small e-commerce business based in the United States that sources products from manufacturers in China and sells to customers across Europe. Before using Wise, the business faced several challenges:
- High Fees for Paying Suppliers: Paying its Chinese suppliers in yuan (CNY) through its US bank involved high wire transfer fees and poor exchange rates.
- Losing Money on European Sales: Receiving payments in euros (EUR) from European customers resulted in its bank converting the funds to dollars at an unfavorable rate, eating into its profit margins.
By switching to Wise Business, the company streamlined its international finances. It opened a Wise multi-currency account and used it to:
- Get Local Bank Details: The business obtained EUR bank details to receive payments from its European customers directly, avoiding costly conversion fees from its local bank.
- Pay Suppliers at a Lower Cost: It used the Wise platform to send CNY to its suppliers, benefiting from the mid-market exchange rate and low transfer fees.
- Manage Cash Flow: The business could hold both EUR and USD in its Wise account, converting funds only when the exchange rate was favorable.
This change resulted in thousands of dollars in annual savings, improved profit margins, and simplified financial management, allowing the business to compete more effectively on a global scale.
6. Frequently Asked Questions (FAQ)
Is Wise safe to use?
Yes, Wise is a safe and regulated financial technology company. It is regulated by authorities in multiple countries, including FinCEN in the US. Wise uses industry-standard security measures, including 2-factor authentication, and protects customer funds through a practice called safeguarding. This means your money is kept in a separate account from Wise’s own business funds.
How does Wise make money?
Wise makes money by charging a small, transparent fee on each currency conversion and transfer. This fee is a percentage of the transaction amount and is always shown to you upfront. Unlike many banks, Wise does not make money by adding a markup to the exchange rate.
How long do Wise transfers take?
Transfer times vary depending on the currencies, payment method, and destination country. However, many transfers are very fast. Wise states that over 70% of transfers arrive in under 20 seconds, and 95% are completed within 24 hours. You will always see an estimated arrival time before you confirm your transfer.
Can I use Wise for my business?
Yes, Wise offers a dedicated business account with features tailored for companies. These include batch payments for paying multiple invoices at once, multi-user access for team members, and integrations with accounting software like Xero and QuickBooks.
What is the difference between Wise and a bank?
While Wise offers many bank-like features, it is not a bank. It is a financial technology company specializing in international payments and currency exchange. The main difference is that Wise does not lend out customer money. Instead, it safeguards your funds in separate, low-risk accounts. Wise focuses on providing a faster, cheaper, and more transparent alternative to traditional international banking.
Are there limits on how much I can send with Wise?
Yes, there are limits, but they are typically very high. For example, when sending from the United States, you can often send up to $1 million per transfer via wire. Limits can vary depending on the currency and the country you are sending to. You can check the specific limits for your transfer route in the Wise app or on their website.
