What is WISE, why and how does it work?

Money transfer is very important in people's personal and business life. And sending money from one bank account to another is usually a fairly simple process—unless you want to send money overseas. And Wise is the one for the job, as it helps make the whole process easier and cheaper.

What is WISE, why and how does it work?

So what is wise, why and what does it do? And how do you open the account? This topic is discussed in detail in today's article.

What is Wise?

Wise (formerly known as TransferWise) is an online platform that anyone can use to easily transfer money between two bank accounts, regardless of location. A domestic money transfer is always relatively easy, but an international money transfer can be more complicated and require paying higher fees.

Previously the only viable way to make foreign transactions was through an international wire transfer. The main problem with this is that it can take a long time, and banks rarely offer a good currency exchange rate.

What is Wise used for?

Anytime you want to transfer money internationally i.e. do foreign transactions, Wise is one of the best solutions. You can use it to send money to someone else, or even transfer money to your own account in another country. Wise started in 2011 with its headquarters in London, but now has offices around the world.

A cross-border transfer made through Wise seems incredibly easy to the user, but several processes go on behind the scenes to make it work. Wise has different accounts in different countries, so when you make a wire transfer, you send it to one of these accounts. Wise then transfers the same amount from one of their other accounts in the recipient's country to the intended account.

For example, if you're sending money from the US to Australia, you'll send money from your US bank account to a Wise account in the US. They will then send money from an Australian account that they are holding to the recipient's Australian account.

How Wise can save you money in international transactions?

While Wise is used to send money internationally, they actually help you save money by avoiding international wire transfers. The money you send them never leaves the country of origin, so there are no international transfer fees, which can usually be quite significant to you. And that's the affordable price of Wise.

Because Wise makes a profit by charging a small fee on each transaction. This is beneficial to you as these fees are always lower than what you would pay for an international wire transfer through a regular bank.

You can use the calculator on the Wise homepage to see what fees you'll pay and how much you'll get on the other end without setting up an account.

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They have competitive, transparent rates

Sometimes when a company charges extra fees, they hide them so people don't realize how much they're being charged. Wise makes it very clear what fees you are being charged and what they are for. They are very confident in doing this, as they boast of prices that are up to 13 times lower than other methods.

The Wise platform currently supports both sending and receiving in 22 currencies, but also supports sending (not receiving) in 27 additional currencies. Note in particular that fees may vary for different currencies, but they are all displayed when transferring.

Wise also has a "guaranteed rate" feature when you send money It locks in an exchange rate so that when you click send, you pay exactly that rate.

How To Open a Wise Account

Tips for getting started with Wise : Wise is an online account that allows you to send money, make payments and spend money internationally. With a Wise account, you can send money abroad, make payments in other currencies and spend abroad on the Wise card.

Here are some tips to help you get started.

Verify to open your Wise account

By opening a Wise account, you will get the following benefits:

  • You can hold 50+ coins in your account
  • Can convert currencies instantly in your account with low fees.
  • Get account details to receive money in AUD, CAD, GBP, HUF, EUR, NZD, RON, SGD, TRY, and USD.
  • Can set up direct debits in AUD, CAD, GBP, EUR, and USD.
  • Can order a Wise Card (currently available in Europe, USA, Australia, New Zealand, Japan and Singapore)
  • Can spend on debit card in any currency with low fees
  • With Wise Jars you can set aside money in any currency.

What is required to open an account?

To open your Wise account, you usually need to verify with some photo ID, proof of address and/or a photo of you holding that ID.

How to verify?

Once the above mentioned documents are uploaded on the WISE server, the same will be verified by the WISE authorities. It usually takes about 2 working days.

Once your account is verified, log in to your account and follow the steps below to set it up:

Wise is safe, secure and controlled

Since Wise's first transfer, in 2011, we've helped millions of people send money to more than 70 countries. In order to do business in all the countries in which Wise operates, Wise is registered with numerous financial authorities around the world.

Wise also uses HTTPS encryption, and 2-step login to protect all your transactions and your communications with Wise. So Wise never misuses or sells your data. And Wise has real live people monitoring every transaction and verifying the identity of every customer.

Wise uses real, mid-market exchange rates

Banks and other providers often set their own, unfriendly exchange rates. This means that you pay more than you need and they pocket the difference. That is, it hides.

Wiser will never mark the exchange rate. Because here you'll always get the true mid-market exchange rate — just like you'd get from independent sources like Google, XE, Yahoo Finance or Reuters.

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