International money transfers can be costly, and the reason Wise, launched in 2011, was created was to make international money transfers more affordable, fair, and easy. Today, Wise’s multi-currency offering serves over 10 million people and businesses who need to manage international transactions, to the tune of around £5 billion (almost C$ 9 billion) every month.
Wise was founded by two friends from Estonia, Taavet Hinrikus and Kristo Kaarmann. Taavet was the first employee at Skype. He lived in London but as Skype is based in Luxembourg, he got paid in euros. Kristo worked for Deloitte, which was in London, and he got paid in pounds. But he had a mortgage to pay in euros in Estonia.
Both discovered that moving money through their banks was expensive, so after much investigation and invention, TransferWise (now Wise) was born.
How Wise works
Wise set up partnerships with banks and companies like Monzo, Bolt, and GoCardless, to streamline international banking processes. As the company expanded, Wise added a multi-currency account, debit cards, and business accounts, and changed their name from TransferWise to Wise.
Wise has no minimum transfer amount and good customer service ratings. They charge low and transparent feels and exchange money at the mid-market exchange rate, making even multiple pay-outs faster and more affordable.
The batch payments tool allows you to make multiple international transfers with just one payment, and you can also automate payments.
Wise safeguards its customers’ money. That means that, by law, they must keep the funds in accounts that are completely separate from the ones they use to run the business. The money is backed by assets that are held in separate accounts. These are called “safeguarded funds”.
Why use them?
Wise is an easy, innovative way to manage international transactions. And you can rest assured that they will not overcharge you or “run away” with your money. The safeguarding system sees to it that, as the money is held by third parties, so even if Wise were to go insolvent (which is highly unlikely), your money is safe.
Bank charges and red tape can be expensive. Wise is undoubtedly a cheaper option, and they are completely transparent about their fees. The multi-currency account makes moving and living abroad go far more smoothly as they deal in multiple currencies and the Wise app is quite user friendly.
With Wise, you can set up a dedicated business account, which makes it easy to cut costs on large payments, invoice in different currencies, set up bulk payments, and integrate Wise as a payment provider in your online
Get in touch with the Strata-G team to find out more about this comprehensive international payment solution. We have a wealth of experience managing international transactions and can advise you on what will work for you. Send us a message online and we’ll help you navigate your payments with our next level accounting services.