Wise is one of the better-known international currency exchange platforms. The company has made a name for itself by offering low fees for over-the-border money transfers. This Transferwise review will discuss the benefits and drawbacks of using Wise. Transferwise Review – at a Glance Wise was founded in 2010 by Taavet Hinrikus and Kristo […]
Overall, Transferwise is probably one of the top non-bank foreign currency remitters out there. It’s highly convenient and offers access to account numbers in several different currencies. The platform is superbly easy to navigate.
Wise is one of the better-known international currency exchange platforms. The company has made a name for itself by offering low fees for over-the-border money transfers. This Transferwise review will discuss the benefits and drawbacks of using Wise.
Transferwise Review – at a Glance
Wise was founded in 2010 by Taavet Hinrikus and Kristo Käärman as an alternative platform to transfer money internationally. The founders claimed the platform allows users to send money through borders without any hidden markup fees as charged by traditional banks. In this Transferwise review, you will find the essential information about this money transfer service.
Two years after its founding, Wise was listed as one of the top 100 startups in the UK Wise’s initial investors included IA Ventures, Index Ventures, and Valar Ventures, a company owned by Peter Thiel, a co-founder of PayPal. In 2014, Richard Branson’s Virgin Group invested 25 million pounds in Wise.
Wise is regulated by the Financial Conduct Authority (FCA) in the U.K. (The FCA is not part of the British government and operated independently). Transfewise distinguishes itself from other FX services by prioritizing transparency. The founders have claimed that Wise charges only mid-market exchange rates without additional fees.
Since its founding, Wise has rapidly grown to be a leading FX platform. It allows users to hold money in over 40 different currencies. Users can transfer money to over 50 countries. Find in this Transferwise review how it works.
How Does It Work?
The Pros
In this section from this Transferwise review are the main benefits Wise offers to customers:
Mid-Market Exchange Rate
The main perk Wise offers customers is what they call “mid-market exchange rate.” The exchange rate differs between the market, where traders buy and sell currency and banks. The market rate tends to be lower compared to banks, which marks up a slightly larger rate to turn a profit. Some financial service providers, like PayPal, also have higher exchange rate markups to make a profit.
Wise promises customers a better deal by offering an exchange rate that is closer to the market rate rather than the bank rate. The idea is that customers can save money when transferring between a high-value and low-value currency.
Transparent Costs
One of the biggest perks Wise offers customers is transparent costs. The company promises that all fees the platform charges would be clearly stated. The company does not charge additional fees bundled together with the exchange rate, according to statements. One of the biggest snags in bank transfers is having to pay more than the market rate because of such hidden fees. The whole point of Wise is to eliminate that.
Multiple Currency Accounts
Wise offers a feature called a “borderless account” where users can have bank account numbers in different countries under a single Wise account. You can send money to local bank accounts in foreign currencies even if you have British, Australian, or American bank accounts. This feature allows customers to hold multiple bank accounts in different currencies. But these are not the only pros from this Transferwise review.
Well-Built Platform
Wise services are entirely digital. As customers expect, the company has an excellent app and a website to use on the go or at home. The software is highly user-friendly. The app and the web service are built with simplicity and accessibility in mind. So you can use it even if you are not particularly computer savvy. The process is simple all you need is to find the swift code.
Good Customer Service
Wise typically scores high on customer service ratings. The platform has a telephone customer service line, in addition to email. You can try both methods if you need help using the platform.
The Cons
As speedy and low-cost as Wise can get, it’s not without drawbacks. In this Transferwise review are some:
Reliability Issues
Some customers have complained that Wise registers transactions as completed when the receiving bank does not. In situations where funds bounce from the recipient bank account, Wise lists the transaction in the completed stage as long as the platform sends the money. Customers have had to pay fees even for funds that were rejected on the receiving end.
Not as Safe as a Bank
While Wise is regulated, the authority that does so is not a government agency. Therefore, transactions on the financial platform don’t come with the same safety guarantees as a bank. Wise can be convenient and fast, but it doesn’t offer the same security that government-regulated financial institutions do.
Extra Verification to Process Transfer Requests
Customers have noted instances where Wise has demanded extra verification documents from account holders to complete transfers. A transaction may get rejected without notice from Wise due to documentation issues.
Conclusion
Wise is an online FX remittance system that’s designed especially as a workaround to excessive fees charged for international money transfers. The company offers access to high-value currencies at surprisingly low costs. There are no hidden fees in the currency rate, and the platform doesn’t charge exorbitant amounts to transfer any of the supported foreign currency.
It has a large portfolio with currencies for customers located in a diverse range of countries. Transactions are fast and convenient. There are some downsides, however, especially regarding the safety and reliability of the service. Wise doesn’t offer the same safety guarantee as a traditional bank.
While services can be unreliable at times, you can always get in touch with its excellent customer service. Most customers would just prefer the transactions to go through, of course. Wise doesn’t come with major security issues, but potential new users should be aware of what these could be.
It should be noted that Wise itself is a well-established company. It’s somewhat regulated and is ready to address customer inquiries. The company is totally legitimate, even if there are some issues with the services offered. Individual experiences, in general, can vary, so you might not encounter reliability issues that other customers experience.
Overall, Wise is probably one of the top non-bank foreign currency remitters out there. It’s highly convenient and offers access to account numbers in several different currencies. The platform is superbly easy to navigate. It’s well worth a shot if you want to transfer money internationally on a regular basis. When it comes to low fees, there is no other service that comes close to offering what Wise does.
Thank you for reading our Transferwise review.
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