When sending money abroad, I always look for ways to save a few dollars without compromising on delivery time. It’s important to compare different providers before making a decision, and TransferWise is one of many that claims to be the best money transfer service. So is it really the best?
The business began in 2011 and expanded its operations to 60 countries in a very short time. It has gained a massive market share in record time, becoming a prominent name in the industry. And it’s no wonder; TransferWise has a great business model that has placed it among the industry leaders.
This leading fund transfer service was established by two Estonian nationals who were residing in London, named Taavet Hinrikus and Kristo Käärmann. It is an online-only service which can be accessed through its web page and mobile app. Anyone can use its services to make a personal or business transactions. It charges tiny fees if you compare them to banks and other providers. Also, TransferWise has a very transparent fee structure that lets you see your charges and the exchange rates before you make a transaction. Currency exchange is done in real time with midmarket rates. It completes the transaction in two to three business days, saving you valuable time and money.
How does TransferWise work?
TransferWise is a revolutionary new approach to fund transfers. TransferWise does all its transactions with a peer-to-peer payment system. It makes use of the fact that many people send funds from one country to another on a daily basis. If a person is sending money from one country to another through a normal service provider, they are paying a higher fee and might be getting a poor exchange rate. But if they could find someone who is sending money from the other direction to his country at the same time, they could simply exchange the money with each other. It cuts out high fees and terrible exchange rates in favor of more favorable direct trades. TransferWise merely acts as an intermediary, giving you a safe space to exchange money.
In this peer-to-peer method, TransferWise receives the funds from the sender, then deposits the money to its account in the same country. Then it converts it into the currency of the recipient and sends this amount from its account in the recipient’s country. The fund doesn’t have to travel across the border. So you save a lot of time in the actual transfer and clearance of funds.
Here they convert the currency at the real mid-market rate. As soon as a customer books his transaction his exchange rate also gets fixed. Even if the rate fluctuates during the process the recipient will receive the money at the previous rate. They call this feature Guaranteed Rate, taking much of the pain out of transferring money overseas.
TransferWise assures that they charge no hidden costs. Their customers can get fees that are up to eight times lower than your typical bank. They charge 0.35% of the transfer plus 80p for each transaction (and credit cards incur a small, additional handling fee). Let’s give you an example of how much a transfer might cost.
If I have to send $100 from the United States to Australia with TransferWise, I will have to pay a fee of only $1.84, plus the small handling fee if I decide to use my credit card. When compared to other popular transfer companies, most of their fees were much higher per transfer than TransferWise . However, when I tried to transfer $1000 in the same manor, I found that the traditional banks and services had smaller fees than TransferWise. This makes them a great resource for sending small amount of the money, but not so good if you need to send large amounts. If you’re interested in more information on their fees, check out transfersreview.com; there you can see its fee comparison with lots of other services.
One of the most compelling features of this service is the conversion of currency based on real exchange rates. When you don’t get real exchange rate, you can potentially lose some money when the currency is converted. The lower the rate, the more money you could lose. Since TransferWise uses real time rates, you’ll never miss out. When I compared TransferWise exchange rates with some of the prominent providers, I always found that it gave better rates than other. This significantly increases the amount you could receive after the transaction.
TransferWise bank account
Did you know TransferWise is a bank with accounts too? They offer borderless accounts that come with US, Australian, and British account numbers and IBAN numbers, making transfers simple between these countries. This can save you tons of money in transfers since your money in considered local in these three places. You can spend in different countries using just this account. You can even send or receive money from up to 30 other countries in different currencies. These different currencies can be kept in the same account and converted into other currencies as needed.
Is TransferWise safe?
The company makes millions of transactions every year and has been found to be very reliable. It has over 3 million satisfied customers who can vouch for its safe methods. It has a secured website which protects critical information like your credit or debit card numbers and bank details. TransferWise also keeps its customers’ money safe by keeping it separate from the company’s own funds. Each transaction is entirely secured and a customer can always find the status of their funds. Their customer service department is also very responsive, giving you someone to call in case of any mistakes or fraud.
Every day, TransferWise is acquiring more customers and building a strong foundation for itself. It does not have any physical locations for cash transfers, but it has managed to give world-class services to its customers exclusively online. It has received very good reviews on Trustpilot, where over 88% customer have called it “Excellent.” TransferWise has an overall rating of 9/10. With a massive and growing customer base, TransferWise is likely to expand in ways that will make it even easier for you to send money where ever it needs to go. Overall, I’m a big fan of TransferWise, and I would recommend it to anyone who needs to send small amounts overseas.