With businesses and services going worldwide, the need for seamless and efficient international money transfer solutions has never been greater. One popular option that has gained widespread acclaim is Wise. This guide shares what the Wise money transfer app is, how it works, and how to use it.
What Is Wise Money Transfer?
Wise, formerly known as TransferWise, is a financial technology company. It makes international money transfers cheaper, faster, and more convenient than traditional banks and similar institutions. This platform operates on a peer-to-peer exchange mechanism, which means you get real (or mid-market) rates and are charged lower fees than banks.
Beyond money transfers, you can hold and manage multiple currencies within the same account. It has several other features, too, including a debit card, batch payments, and Wise assets.
How Does Wise Money Transfer Work?
Typically, when you send money internationally through traditional banks or transfer services, your funds pass through multiple banks. Each entity takes a cut through hidden fees and unfavorable exchange rates. Wise changes this, and instead of using a complex network of intermediaries, Wise connects your money directly to its destination.
The payment methods for Wise money transfers are ACH payments (usually the fastest option available), wire transfers or bank transfers (can take up to one to two business days), debit card payments, and credit card payments. Debit and credit card payments are fast but usually cost a bit more.
To get started with Wise to send/manage your money, create an account on the platform. Once your virtual bank account is all set, you can send/receive money, hold and manage money into different currency accounts, order a Wise debit card, and open a business account.
To send money to another account, head to the Recipients tab. Choose Add a recipient, and select the recipient’s currency. If the recipient is a Wise user already, find them by using their Wisetag, email, or phone number. If they don’t have a Wise account, manually enter their banking details, such as email, full name, ACH routing number, account number, account type.
After you have successfully added a recipient, tap on their name in the Recipients tab, and choose Send. Enter the amount of money you want to send. Wise will show you the fee you will need to pay to make the transfer and the exchange rate you will get if you are sending money in another currency. You will also see how long the transfer will take. Once you are ready to send the money, click Continue. Pick a reason for your transfer, and click Continue again.
Features of Transfer Wise
Along with sending and receiving money, Wise has several other features you should know about.
Money Transfer
One of the most fundamental features of Wise is its core money transfer service. Whether you’re sending money to family overseas, paying freelancers in another country, or making international purchases, Wise allows you to transfer funds quickly and affordably. It offers real exchange rates and is transparent about the fee involved, which means you always know exactly what you’re paying for and what your recipient will receive.
Wise Debit Card
You can also get a debit card associated with your Wise borderless account, allowing you to spend money in any currency at the real exchange rate. The debit card can be used just like your local bank debit cards while traveling, shopping online, or dining out abroad. You also have an option to request a digital debit card for that extra peace of mind.
Large Transfers
Wise also allows you to transfer large sums of money easily. It has a team of large transfer experts that can help you get started and track your transfers. The process of transferring a large sum of money is similar to the usual transfer method. Enter the amount you wish to send with the recipient details, and Wise will calculate the fee and the arrival time of the money. In some cases, Wise may ask for some additional verification documents. If your bank account has certain transaction limits, you may need to visit the bank to initiate the transfer.
High-Yield Savings
Wise offers a high-yield savings account feature within its multi-currency account. It allows you to earn interest on your USD, GBP, and EUR balances by opting into this feature with competitive interest rates. Wise also does not impose any account-based restrictions in this feature, so you can access your account and spend, receive, or manage money easily.
Wise Assets
Another way to grow your money through your Wise account is to invest it in Wise assets. Apart from the Interest feature Wise offers, you can choose to hold your money as stocks. Wise will invest it in an index tracking fund of its choice. Users need to pay a service fee to Wise and a fee to BlackRock, the fund manager. It includes an option to access and use 97 percent of the invested balance at any time.
How Long Does Wise Take to Transfer Money?
The time it will take Wise to transfer your money depends on a couple of factors, including the country where you reside, as well as the country you’re sending to or receiving from and the payment method you are using. A normal transfer typically takes less than 24 hours, but in some cases, it may take one to two business days. Wise shares the estimated arrival time before proceeding with the transfer.
What Are The Cons of Using Wise?
While Wise claims to charge lower fees than most of its competitors, the transfer fee for some currencies is higher. We also found the customer support options to be limited, which can be concerning if you are in need of immediate assistance.
While there are a number of platforms to transfer money internationally, Wise offers comprehensive features that go beyond that. However, it’s crucial to exercise caution when using any financial service, including Wise.
While Wise is known for its transparency and competitive rates, it’s essential to be mindful of potential risks, such as security vulnerabilities, exchange rate fluctuations, and regulatory changes that could impact your transactions. We also recommend enabling two-factor authentication for a more secure experience. If you suspect suspicious activity on your Wise account, there are several steps to ensure you weren’t scammed.
Image credits: Unsplash. All screenshots by Zainab Falak.
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