If you have been using banks for years to send money abroad, you are not alone. But, recently, there are better and easier ways to do so. One of them is TransferWise, which is now called Wise and has become popular for its simple and cheap money transfer services. In this article, we will discuss the features and advantages of the Wise platform and why it has become popular among people and companies.
Wise was founded in 2011 by two Estonian entrepreneurs, Taavet Hinrikus and Kristo Käärmann, and is becoming a major player in the financial sector. The company was started to solve the problems usually encountered when sending money cross-border such as high fees, secret charges and bad exchange rates.
The model of operation of Wise is peer-to-peer; it connects people who want to send money to other people in other countries. This way, Wise does not involve the conventional banking system which means that it can offer lower fees and better exchange rates than most banks. This has made it a popular choice for people sending money to friends and families abroad as well as businesses making international payments.
The following are some of the features of Wise that make it different from other banks and other money transfer services.
Another major pro of using Wise is that it has a simple and easy to understand the pricing policy. This is contrary to most banks where the fees are incorporated in the exchange rate and are not revealed to the client. Users are therefore able to know the exact amount that they will be charged before making the transaction so as to avoid being charged extra fees.
Wise has the benefit of having low fees for the international money transfer. The platform has a minimum commission that is levied on the transfer of funds depending on the amount that is sent or received. For instance, sending $1,000 through Wise may cost you less than what a bank would charge for the same transaction.
The exchange rates are also an important factor that can affect the cost of the money transfer. Wise uses the mid-market exchange rate, which is the real exchange rate that banks use when trading with each other. This helps the users get the best exchange rate and there is no chance of the mark up.
One more advantage of using Wise is the speed of transfers. While a standard bank transfer may take up to several days, Wise transfers are usually instant or take a few hours. This is particularly useful for instant transfers or when sending money to countries with slow banking systems.
Wise provides its users with multi-currency accounts that enable them to receive and manage money in different currencies. This is particularly useful for people or companies that deal with several currencies. Users are therefore able to switch between currencies and make transfers without opening up other accounts or doing conversions.
To better understand the advantages of using Wise, let’s look at two real-life scenarios:
John is from the United States and wants to send $500 to his family in India. He decides to compare the costs of using his bank versus Wise. When comparing the exchange rates and fees, John finds that his bank has high fees and a poor exchange rate. On the other hand, Wise has lower fees and a more favorable exchange rate. With the help of Wise, John is able to keep more money in his pocket and send $500 to his family.
A small e-commerce company based in the United Kingdom has to make a $10,000 payment to a supplier in China. The business owner, Sarah, first considers using her bank to make the transfer but then looks for other options. When comparing the money transfer services, Sarah selects Wise because it has low fees and good exchange rates. Therefore, with the help of Wise, Sarah is able to reduce the costs of the transaction, which will benefit her business.
So, why should you choose Wise when there are so many money transfer options? Here are some compelling reasons:
- Affordability: Wise has some of the lowest fees in the market, therefore it is cheap for individuals and businesses.
- Clear: Wise is completely transparent with the fees and exchange rates, so the user knows what they are paying for.
- Speed: It only takes a few hours to transfer money through Wise, which is faster than a bank.
- Ease: The platform is very easy to use and can help send and receive money even for the not so tech-savvy.
- Security: Wise uses secure measures to protect users’ information and transactions to make users comfortable.
TransferWise has changed the way we send money overseas. Wise has a clear and open pricing policy, low fees, real exchange rates, and instant transfers, which has made it popular for people and companies. By using technology and not involving conventional banking systems, Wise offers a way to send money internationally at low costs. If you are sending money to your family abroad or running a business, Wise is a simple and effective way to do it.
