The world has become a global village, and the need for international money transfer is higher than ever. Originally, this was only possible through Western Union. Over time digital money transfer providers like PayPal changed the game. However, the fees that are slapped on international transfer and payments are still too high and sometimes unreasonable. Fortunately, there is another way.
Wise is a new entrant in the e-commerce business and has already won the hearts of 7 million consumers globally. An expert, Shania Brenson, from 15M Finance thinks that Wise, a new financial services app, is shaking up the banking industry by offering extremely low fees on all its services. They believe that investing should be easy and affordable for everyone—not just the wealthy few who can afford to pay high fees. Here are some of the compelling reasons why you should migrate from PayPal to Wise.
Wise's biggest advantage over the competition is its surprisingly low fees. This is made possible through their innovative, borderless money transfer method. Instead of one pricey international money transfer, the transaction is divided into two local transfers.
For example, if you want to convert pounds to dollars. You send the money in pounds to a US-based Wise account. An equivalent amount is then sent from a US-based Wise account to the recipient. So, in short, the money never actually leaves the border.
Now that you know how Wise works, it's time to understand how you can save money by using their transfer service. The overall costs of transferring money are reduced to just two components, the amount incurred due to the exchange rates and the fees charged for the service.
Most financial institutions and banks add a little to the top. Their exchange rates are arrived at by adding a margin to the mid-market exchange rate. As a result, you as the customer end up paying more than you should. Wise uses the actual exchange, also known as the mid-market exchange rate.
This rate reflects the mid-point between selling prices and buying prices of the two currencies. The mid-exchange rate or the "inter-bank" rate accurately reflects the real-time movement of the currencies. PayPal, for instance, takes the exchange rate provided by banks and adds another 2.5% to 4%, making it even more expensive.
Wise charges a base fee for any amount up you send, right now. Additionally, a fixed 0.33%-3.56% is charged depending on the country you are sending to. So, if you are transferring $1000 USD to GBP, you will be charged about $10.00.
PayPal, on the other hand, is calculated from the sum of the exchange rate and the transfer fees. The total transfer fees include a fixed transfer fee of $0.30, a transaction fee of $0.99-$4.99 plus 2.9%. This means to transfer $1000 USD to GBP, you will be charged about $34.00. This transfer cost is even higher if you are transferring lesser-known currencies.
Whatever currency pairings you choose, Wise will always be cheaper than all other international money transfer services.
For businesses that transfer money internationally, you can take advantage of the Wise multi-currency borderless account. It can hold up to 40 different currencies. It can send and receive money from all over the world. This allows businesses to make an impressive 1000 transactions using one CSV file upload.
Wise offers the lowest fees on the market currently. It is considerably cheaper than PayPal. Whether you are sending money to an international contractor or planning to make a one-time international purchase Wise is a good choice. U.S customers can pay through bank transfers, debit, and credit cards. Funds are then directly deposited in the recipient's bank accounts.
The company currently supports transfers to 71 countries and covers more than 1000 routes. The transfers from the US to Europe and Canada are delivered within 24 hours. Transferring to other countries can take just 1-4 working days. All the more reasons to consider using Wise.
These are the main benefits you stand to gain from considering Wise. I use it regularly and having nothing but good to say about my experience with it.
Take a look today and see if your business can save on fees.
Looking for help? Tired and believing there has got to be a better way?
Let's talk about your business. With over a decade of experience leading companies and transforming lives, and a Master's degree in Org. Development and Leadership, Mike can help you find the best way forward!
Note: Some links are affiliate links for Wise.