Wise Review 2023 (formerly TransferWise)

Wise, previously known as TransferWise, has revolutionized the world of international money transfers by offering customers a cost-effective and user-friendly solution. This comprehensive review delves into the various aspects of Wise, providing an in-depth analysis of its features, services, and overall performance.

In this review, we will explore Wise’s history, the platform’s key features, the fees and exchange rates, the account types offered, and the level of customer support provided. Additionally, we will discuss the safety and security measures employed by Wise, as well as examine its strengths and weaknesses. By the end of this review, readers will be equipped with the necessary knowledge to make informed decisions about using Wise for their international money transfer needs.

Wise Key Facts

A Breif History of Wise

Launched in 2011 by Taavet Hinrikus and Kristo Käärmann, Wise was established with the vision of making international money transfers more affordable and accessible. The founders, both Estonian expatriates living in London, identified a need for a transparent and fair solution to the challenges they faced with traditional banks when transferring money between their home and adopted countries. Over the years, Wise has grown exponentially and now boasts millions of customers across the globe, facilitating billions of dollars in transactions annually.

Wise Platform Overview and Key Features

Wise operates on the principle of providing low-cost, fast, and secure international money transfers. To achieve this, Wise uses a peer-to-peer (P2P) system, which eliminates the need for intermediary banks and subsequently reduces transaction fees. The platform’s key features are as follows:

1. Transparent Fees: Unlike traditional banks, Wise adopts a transparent fee structure, ensuring customers are fully aware of the costs associated with their transfers. This structure eliminates hidden fees and allows users to make informed decisions.
2. Real Exchange Rate: Wise uses the mid-market exchange rate, also known as the real exchange rate, when converting currencies. This approach guarantees customers receive a fair rate without being subjected to inflated or padded rates commonly employed by banks and other money transfer services.
3. Speed: With a focus on efficiency, Wise transfers often reach their destination within hours, although some transactions may take up to 2 days, depending on the currencies involved and local banking hours.
4. Multi-currency Accounts: The Wise account offers users the ability to hold and manage multiple currencies. This feature is particularly beneficial for frequent travelers, digital nomads, and businesses with international operations.
5. Debit Card: Wise provides a debit card linked to the multi-currency account, enabling users to spend in local currencies when traveling and shop online without incurring additional foreign transaction fees.

Wise Fees and Exchange Rates

One of Wise’s main selling points is its competitive fee structure. Fees are based on a combination of a small, fixed fee and a variable fee, determined by the amount being transferred and the currency pair. This structure results in significantly lower costs compared to traditional banks and other money transfer services.

To further enhance transparency, Wise offers a fee calculator on its website, allowing users to estimate the cost of their transfers before initiating a transaction. Moreover, as mentioned earlier, Wise uses the real exchange rate for currency conversion, ensuring customers receive the fairest possible rate.

Wise Account Types

Wise caters to a diverse range of customers by offering different account types, each tailored to specific needs:

1. Personal Account: Ideal for individuals who need to send or receive money internationally, pay bills, or shop online. Personal accounts also come with the option to get a Wise debit card.
2. Business Account: Designed for small to medium-sized businesses with international transactions, this account simplifies the process of paying and receiving payments in multiple currencies. Business account holders can also issue invoices in various currencies and make bulk payments.
3. Freelancer Account: This account type is tailored to freelancers and independent contractors who work with clients across the globe. It enables users to receive payments in multiple currencies without incurring high conversion fees.

Wise Customer Support

A crucial aspect of any financial service is the quality of customer support provided. Wise recognizes this and offers several channels for customers to seek assistance:

1. Help Centre: The online Help Centre serves as a comprehensive resource for customers, addressing a wide range of topics, including account setup, transfer process, fees, and troubleshooting issues.
2. Email Support: Customers can reach out to Wise’s support team via email, typically receiving a response within a day. This option is suitable for non-urgent queries and in-depth issues that require detailed explanations.
3. Live Chat: For immediate assistance, Wise offers a live chat feature, connecting customers with support agents in real-time. This option is ideal for resolving simple queries and time-sensitive concerns quickly.
4. Phone Support: Wise provides phone support in select regions, allowing customers to speak directly with a support agent. However, it is worth noting that phone support availability may be limited due to time zone differences and regional restrictions.

Wise Safety and Security

In an era where online security is paramount, Wise has implemented robust measures to protect customer data and funds. Some of the key safety and security features include:

1. Regulatory Compliance: Wise is regulated by various financial authorities worldwide, including the Financial Conduct Authority (FCA) in the UK and the Consumer Financial Protection Bureau (CFPB) in the US. These regulations mandate strict adherence to financial and operational standards.
2. Two-Factor Authentication (2FA): Wise offers 2FA for account access, requiring customers to authenticate their login using a secondary method, such as a mobile device, in addition to their password. This added layer of security protects accounts from unauthorized access.
3. Encryption: Wise uses state-of-the-art encryption technology to safeguard data transmission and storage, ensuring the confidentiality and integrity of customer information.
4. Fraud Prevention: The platform employs advanced algorithms and monitoring systems to detect and prevent fraudulent activities. Additionally, Wise maintains a dedicated team of security experts to address any threats proactively.

Wise Pros and Cons

Wise has several notable strengths that contribute to its popularity as an international money transfer platform:

1. Low fees and transparent pricing structure: Customers benefit from Wise’s competitive fees, which are typically lower than those of traditional banks and other money transfer services.
2. Fast transfers: The P2P system enables Wise to process transfers quickly, with most transactions completing within hours.
3. User-friendly interface: Wise’s website and mobile app are designed with ease-of-use in mind, making it simple for customers to manage their transfers and accounts.
4. Wide coverage: Wise supports over 50 currencies and facilitates transfers to and from numerous countries, making it a versatile option for global money transfers.

However, Wise also has a few weaknesses to consider:

1. Limited availability of phone support: While Wise offers phone support in some regions, it may not be accessible to all customers, potentially making it challenging for those who prefer direct communication which is especially important when making larger sized transfers.
2. No cash pickup option: Wise operates exclusively through bank transfers, meaning recipients must have a bank account to receive funds. This limitation may be inconvenient for some users who require cash pickup options.
3. Variable transfer speed: Although most transfers are processed quickly, the time taken for a transaction to complete may vary depending on the currencies involved and local banking hours. In some cases, transfers can take up to 2 days.

Wise Alternatives and Competitors

Wise vs. Currencies Direct

Wise vs. XE Money Transfer

Wise vs. Western Union

Wise vs. PayPal

Wise vs. Revolut

Wise vs. Remitly

Wise vs. MoneyGram

Conclusion

In conclusion, Wise has emerged as a prominent player in the international money transfer industry, offering a cost-effective and user-friendly alternative to traditional banks and other remittance services. The platform’s commitment to transparency, competitive fees, and efficient transfers has resonated with millions of customers worldwide.

Wise’s innovative approach, utilizing a P2P system and offering features such as multi-currency accounts and a debit card, has made it an attractive choice for individuals, freelancers, and businesses alike. The platform’s emphasis on customer support, safety, and security further enhances its appeal.

However, it is essential to recognize that Wise may not be the perfect solution for everyone. Some users may find the lack of phone support in certain regions or the absence of a cash pickup option limiting. Additionally, the variable transfer speed may not be ideal for those who require consistently fast transfers.

Despite these minor drawbacks, Wise has proven to be a game-changer in the world of international money transfers. The platform’s strengths far outweigh its weaknesses, and it continues to evolve and improve its services to cater to the diverse needs of its customers.

To determine whether Wise is the right choice for your money transfer needs, it is crucial to consider your specific requirements, such as the frequency and amount of transfers, the destination country, and your preferred mode of communication with customer support. By thoroughly evaluating these factors in conjunction with the information provided in this review, you can make an informed decision and select the best money transfer service for your unique circumstances.

Frequently Asked Questions