Are you wondering how you can send money to America, Europe, and abroad easily, quickly, and economically?
Then you definitely need to learn what Wise (formerly known as TransferWise) is.
That’s why we wrote this article, in which we will tell you everything you need to know about this financial technology (FinTech) company: what it is, how it works, its advantages, etc.
So pay attention and let’s get started!
What is Wise?
Wise is a financial technology company or a digital service for sending or transferring money to foreign countries, which has gained great popularity in recent years.
Many similar FinTech companies have also gained significant popularity, with some of the most well-known being: Revolut, Stripe, PayPal, etc.
By the way, if you want to learn how to create a PayPal account, read our detailed guide.
Wise offers the possibility of creating an online bank account in a foreign country, as well as the option to issue a bank card, with which you can carry out all your transactions, both physical and electronic.
Furthermore, through Wise, you can track charges and rates per transaction. In other words, as you understand, Wise functions like a traditional bank, offering, however, more and significant benefits, as you will find out below.
How does Wise work?
A very important feature of Wise is that it has accounts in many different foreign countries, facilitating direct transactions between individuals with different currencies without needing intermediaries (e.g., banks).
This means that when you want to transfer money, your funds do not pass from one country to another, which is why you always pay based on the local currency.
What does this mean for you?
This means that your deposits will have a much lower cost. Unlike banks or other traditional international money transfer companies (e.g., Western Union, Moneygram), the fees you can achieve through Wise are up to 9 times lower.
Especially in the case of Greek banks, various hidden fees, combined with particularly burdensome exchange rates, can create a huge final amount.
This makes TransferWise an ideal solution for Greece.
Opening a Wise Account – Procedure
So, after we have seen what Wise or TransferWise is and how it works, it is time to tell you how you can open an account.
Let’s see the steps you need to follow, one by one, dedicating just a few minutes of your time!
- Visit the official Wise website and click the “Register” button located in the top right corner.
- Fill in your email and click “Next.”
- Choose the type of account you want to open. The available options are two: Personal account and Business account.
- Choose the country you live in and click “Continue.”
- You will then be asked to fill in your mobile phone number. Once you do, you will receive a message from Wise with a one-time code. Enter the code in the corresponding field.
- Create a strong password and wait for your account to be approved.
- Your Wise account is now ready for use! Once approved, you can also get a digital debit card from Wise (for a small fee), which you can use at ATMs, for contactless payments, etc.
Advantages of Wise – Why it is beneficial
So, we have seen how to open an account with Wise. But why should someone choose to transfer money abroad with Wise?
Let’s look at some of the most important advantages that characterize this FinTech company:
Low Fees
As mentioned earlier, Wise charges you very low fees (depending on the amount and currency you want), unlike banks or other ways of sending remittances.
Thus, foreign currency transfers become particularly economically advantageous.
Transparency
One of Wise’s most important features is the converter available on its homepage.
Using the converter for every money transfer you want to make, you can easily and quickly calculate how much money you will pay in total, depending on the country you want to send to.
You can also calculate the differences between currencies. In fact, the converter informs you about how much money you can save compared to other companies.
There are no hidden fees, as is often the case with banks. You will be able to see the total amount you will pay through the converter and decide whether you want to make the transfer or not.
Speed
If you regularly send money to foreign countries, you are probably anxious about how many days it will take for the remittance from abroad to appear and how long the recipient will wait for the money to show up in their account.
And this is a very important factor for international money transfers. With Wise, this anxiety does not exist.
This is because the transfers usually happen within just one business day or even within seconds, especially if it concerns popular currencies (e.g., dollar, euro, yen, pound, etc.).
And this is a very significant difference compared to payments through Stripe, for example, as well as compared to many other companies in the industry (Western Union, PayPal, ING, WorldRemit, etc.).
Of course, transfers with Wise can sometimes be affected by the payment method or procedural checks that need to be done.
Security
Wise guarantees security in money transfers through a series of features it offers.
Specifically, it has a dedicated team to prevent and deal with potential fraud, sends real-time notifications (e.g., every time you make a transaction), uses two-factor authentication (2FA), etc.
Additionally, the company and its transactions are monitored by official regulatory bodies and organizations, such as the National Bank of Belgium for Europe, the Financial Crimes Enforcement Network (FinCEN) in the USA, the Financial Conduct Authority (FCA) in the UK, etc.
Who is Wise for?
Wise is an ideal solution for:
- People who frequently transfer money to foreign countries, such as parents who have children studying at foreign universities.
- People who regularly make purchases from foreign websites or who sell abroad.
- Professionals or business owners who make transactions with foreign countries and want to pay and get paid in local currencies.
- People who travel frequently abroad.
What is Wise – Summary
We have seen above everything you need to know about Wise: what it is, how it works, how to open an account, its advantages, and who it is for.
The quick, secure, transparent, and highly cost-effective way of transferring money makes Wise a company with significant comparative advantages and an ideal solution for those who need to transfer money across borders.
If you found the above article useful and interesting, don’t hesitate to share it with your friends on your social networks!
