TransferWise is a new way to transfer money internationally. This website enables businesses to send unlimited funds to over 70 countries globally. The key to this new platform is that it removes all hidden bank fees, streamlining the money delivery process to give you the best exchange rates in the world.
Here's everything you need to know about the payment platform as an alternative to Western Union and Paypal so that you can explore these advantages to help you make an informed decision when choosing an international money transfer partner.
Founded in 2011 by two members of the early Skype team, TransferWise is a London-based international online money transfer service. The company provides money transfer services through online and mobile platforms, allowing customers to efficiently and conveniently send and receive funds while saving on the fees typically charged by banks.
It’s different from other money transfer providers in that currencies are exchanged using mid-market exchanges rather than foreign exchanges (FXs). This means that funds do not have to be moved abroad for processing. The result is cutting out of the fees and commissions typical with banks and many international money transfer providers that have to move money overseas for processing.
Sending money with TransferWise is super easy. Simply create a user account with your email address, or you can sign up using your Google+ or Facebook account.
Once you have an account, on your browser, navigate to the TransferWise website, select “Send Money”, and enter the amount you’d like to send. Transfer funds from your local bank account, debit card, or credit card (in selected countries) to the other party.
TransferWise is primarily regulated by the Financial Conduct Authority (UK). In addition, it's licensed by financial regulatory agencies in Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, and the United States.
The company uses real-time exchange rates; the ones you’d find on Yahoo and Google. Better still, the platform will show you the current mid-market exchange rate as well as the amount you’ll receive in your bank account after conversion.
Fees are consistently better than what’s charged by banks, Western Union, PayPal, & MoneyGram. For transfers up to $300, you pay a flat fee of $3. For amounts between $300 and $5,000, a 1% fee is charged. And, for any amounts over $5,000, a 0.7% fee applies. An additional 1.7% fee is charged on credit card transfers in EUR and GBP.
The exact amount of time it takes to complete a transfer depends on a number of factors including the currencies involved, bank operating hours, and the involved bank’s procedures. Regardless, it takes no more than 4 working days to receive money in your bank account.
TransferWise has done their due diligence for security and regulation. For one, the company is regulated by multiple licensing authorities including the FCA and Her Majesty’s Revenue and Customs (HMRC). Moreover, all TransferWise transactions are secured by 256-bit SSL encryption and 2048-bit signatures.
TransferWise is currently available in 72 countries worldwide, with 9 physical offices in the UK, USA, Australia, Japan, Hungary, Estonia, and Ukraine. It deals in 38 different currencies and provides services in 6 different languages.
Anyone who transfers money internationally should consider TransferWise. The benefits offered by this service will give you between 3% to 14% more in your bank account compared to other standard money transfer methods.