Wise, formerly Transferwise, is one of the market’s most popular international money transfer apps. It was started in 2011 with the goal of making transfers easier, faster and cheaper. Wise is the first service you will likely come across if you’re looking to send money.
But what if Wise doesn’t offer the services you seek? Or perhaps you would like to compare it to several other services to determine if it has the most competitive rates on the market? Are there other alternatives you can look at?
What is Wise?
Wise is a Fintech company specializing in currency conversion, international account services, and cross-border transfers. The company has customers in and outside the US.
The extensive range of services is one of the reasons for its popularity. The services range from money transfers to personal accounts, debit cards and even business accounts.
How Does Wise Work?
Compared to other methods of sending money like Western Union, Wise has made sending money across borders easier without leaving the comfort of your home.
When sending money abroad, you start by sending money from your local bank to Wise. Wise will exchange the currencies and then make the transfer to the recipients in their local account.
Wise operates under numerous currencies, including the Euro, Sterling Pound, US Dollar, Australian Dollar, Swiss Franc, Singapore Dollars, Brazilian Real, Yen, and Krone, among others.
Pros of Using Wise
Wise offers numerous benefits to its customers and account holders. Some of the pros of using the various services that Wise offers include;
- You can send money to over 80 countries worldwide and hold and exchange over 50 currencies. You can use spend with your Wise card in over 175 countries.
- Wise uses a competitive mid-market currency exchange rate that ensures the recipient and sender save money on currency conversion rates.
- Wise offers low and transparent fees.
- There are personal and business accounts and services available.
Cons
- Wise doesn’t have a branch or face to face to service. Everything is done online.
- Transaction fees apply based on how you use your account
- There’s no option to pay in cash or send cash transfers for cash collection.
Why Wise is a Popular Choice
Many users will agree that a platform like Wise solves the challenges of transferring money using traditional banks. Because of Wise’s features and types of services, it has become a popular choice for sending and receiving money across borders. Here’s why it remains a popular choice;
It is safe to use
Usually, when you cut back on the time it takes to send money, it’s associated with compromised security and safety. But Wise has added multiple layers of security, like a 2-factor authentication system to protect your account and transactions.
The company is regulated by the UK’s Financial Conduct Authority (FCA) and Her Majesty’s Revenue and Customs. It holds all the necessary licenses in its other areas of operations, like the US. These licenses prove that Wise has done enough to improve institutional-level security and encryption.
The security and safety that Wise provides go beyond the transaction. The company keeps consumer and business funds separately. So, in case of bankruptcy, the consumer’s funds are safe.
Low exchange rates
When dealing with money in different currencies, the exchange rate becomes a huge factor that can adversely affect your bottom line. Wise offers the mid-market rate between selling and buying rates, usually better than the rates you would get at a bank.
You also get a transparent chart rate. This allows the user to know what fees they would be charged when exchanging and transferring money before the transfer.
Low fees
Most banks and financial institutions take a 5% cut in hidden fees when you carry out a currency exchange or an international money transfer. Also, the sender and the recipient might incur additional payment fees for the transfer. Wise has better and more competitive charges.
Better coverage
You can use Wise to send money to over countries and in over 50 different currencies. Not many platforms offer the same coverage.
As good as Wise might be, there are alternatives, some of which might even have better features and coverage than Wise.
The Best Alternatives to Wise
Wise might seem like the best option there is. And truthfully, it could be among the best. However, other alternatives might be better suited to meet your needs and possibly even complete your transfers faster than Wise. You just need to look around. Some of these options include;
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Revolut
Revolut was established a little later after Wise in 2015 but has quickly risen to be one of the leading Fintech companies in Europe offering its services worldwide. The company is based in the UK and has a platform that operates the same way as Wise.
With Revolut, you can transfer funds to bank accounts and other Revolut accounts using the company’s app.
The company also has debit cards that you can use to buy goods and services. The clear advantage Revolut has over Wise is that as an account holder, you can access virtual cards and trade in cryptocurrencies.
Revolut’s biggest clients are international businesses and active travellers. Like Wise, Revolut has a multi-currency account that you can use to exchange and send funds at low costs and within a short period.
Revolut cards can be used for online payments or at physical stores and for ATM withdrawals. You can also manage your funds and accounts through the company’s app.
After creating a Revolut account, customers get a Visa Prepaid or Mastercard debit card that they can use for withdrawals and charge-offs in over 120 countries. This is less coverage than with Wise but still quite decent and commendable.
Pros
- With Revolut, you can choose your account tier, including a free standard option.
- All accounts come with linked international payment cards
- Free transactions are available based on the account tier you pick
Cons
- You have to pay a monthly fee to unlock all the features Revolut offers.
- Transaction and fair usage fees differ depending on how you use your account.
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Pay iO
Pay iO has been one of the best secrets in the UK Fintech market. It is a powerful tool that has helped many businesses and individuals unlock their full financial potential and meet their financial obligations easily and at competitive rates.
Pay iO has created a platform that facilitates the smooth process of sending and receiving money for individuals and businesses without compromising security.
The platform offers a more robust range of features while keeping its user interface and app clean and easy to use.
Most of the services that Pay iO offers are best suited for businesses. The company leverages the power of Open Banking to make it easier for businesses to send and receive payments.
Pay iO users can still enjoy competitive foreign currency exchange rates and multi-currency accounts. You can also get a digital wallet that you can use to manage the different accounts and a business card, all free and fully online.
With mobile and web access, Pay iO makes it easy for its customers to access their accounts anywhere in the world. You can also make global payments with multi-currency bank transfers. Because the platform uses Open Banking, payments are sent and received in a shorter time which is a huge upside compared to Wise.
Pros
- Pay iO uses Open Banking to hasten the transfer of funds and make everything more seamless.
- Pay iO offers more currency options allowing for deeper penetration for customers looking to make international transfers and payments.
- You get the real mid-market rake like on XE.com
- Customers access the platform and its full features free of charge.
- Low and transparent fees
Cons
- As a Fintech, Pay iO doesn’t have physical offices or face-to-face services.
- Most of the services offered by Pay iO are more appealing to businesses.
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PayPal
PayPal is a global name that has been around for the longest time among international money-sending options. Although it is best known for sending money and sending and receiving payments, PayPal also lets its users hold a balance in their account in more than 25 currencies. Business accounts can also receive money in as many accounts.
PayPal has a global reach and a huge user base. It’s an easy way to send and receive money and eliminates most of the complex details required to send money with other platforms like IBAN and bank codes. With PayPal, you can send money or make a payment using only the recipient’s email address.
Depending on your needs, you can also link a debit or credit card to the account. A PayPal account doesn’t need any maintenance fee, but the platform makes money from changing transaction fees and currency conversion charges.
Pros
- Global reach and huge user base
- Send payments instantly using just an email address
- Selection of different PayPal cards for International use
Cons
- International transfers can attract up to 5% in fees plus a currency conversion charge
- Currency conversion costs can be between 3-4% of the amount being converted
- There’s a limited amount of currencies you can hold compared to Wise, Revolut and Pay iO.
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Transfergo
Transfergo is a London-based international money transfer company that was launched in 2012. The company prides itself on a platform that provides convenient services for its customers at low prices. Although the company might not be as popular as some of its competitors, it appears to be among the most trusted.
It operates in more than 63 countries, but you can only send money from Transfergo if you stay in Europe, the UK, or Turkey. But you can send money to several countries, including the US, Canada, and India.
If you prefer a wide range of payment and delivery options, Transfergo is an excellent alternative to Wise. The sending and delivery methods vary by country, including bank accounts, mobile money, bank cards, and digital wallets.
Transfergo provides mid-market exchange rates and has lower fees compared to Wise. Also, Transfergo delivers the funds faster compared to Wise.
Pros
- Fast transfer
- Multiple cash delivery methods
- Competitive fees and currency conversion rates
- Send money in multiple currencies
Cons
- You can only send money to a limited network of countries
- A limited number of payment methods
- Live support is only available through the phone
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WorldRemit
WorldRemit is a well-established money transfer provider with over 4 million customers globally. The company operates using an app and through a network of agents worldwide. That makes it easy for recipients to receive money in different ways when using WorldRemit.
Recipients can transfer the money to their banks, cash pickup, mobile money or an airtime top-up. The sheer variety of options makes this the most convenient way to send and receive money in the modern era.
Although WorldRemit has competitive money transfer rates, the same can’t be said for its exchange rate. Unlike the others that are more upfront with their mid-market exchange rates, WorldRemit may add an extra fee to the exchange rates. Also, the exchange rate might be higher, which means the recipient will receive less.
Pros
- WorldRemit has a large global presence with a vast network of cash-pickup locations
- It offers various options for sending and receiving money
- It is easy to use with a high rate of customer satisfaction
- It has a reliable customer support
Cons
- It is not the cheapest alternative and is possibly more expensive than Wise
- Most of its fees are buried in non-transparent exchange rates
How to Pick An Alternative to Wise
When sorting through the different competitors, you need to be certain of the problem you’re trying to solve. Each option has its strong points, and where it lacks, which means you need to identify the option with the most convenient features as a user.
Some of the shortcomings of Wise that you might need to address include;
- Slow transfers – Wise isn’t known for having the fastest transfers, especially when the transfer is funded through bank accounts. It could take several times to complete the transaction, and many people also complain about the Wise transfer limits.
- Communication – Wise is not transferred in all languages. It can be a problem for a person whose primary language isn’t among the languages available. In such a case, you need to find an alternative that is more accommodative, or you can find modern translation tools to help with that.
- Limited customer support – You can only phone the Wise customer support team within working hours and on weekdays. This might apply to most financial institutions, but for a Fintech that operates 24/7, it can be a red flag.
