Since it was launched in 2011, the company has grown to be one of the world’s most preferred international money transfer service provider. Know more about the company and what else it has to offer as we do this TransferWise review.
A report published by The World Bank has stated in the Migration and Development Brief, says that “remittances to low- and middle-income countries reached a record high in 2018”.
According to the Bank, annual remittance flows to low- and middle-income countries were estimated to reach $529 billion in 2018, which was an increase of 9.6% as compared to the previous year.
Meanwhile, based on the data published by Statista, the transaction value in the digital remittances segment was projected to reach over eight (8) million U.S. dollars in 2020. Furthermore, the transaction value is expected to have an annual growth rate of 14.8%, which will result in an estimated total amount of $152,471 million by 2024.
Now, what are we trying to point out with these numbers?
Well, first, the report from The World Bank, shows that remittances are overflowing across the globe. Money goes around from one location to another. Needless to say, the remittance industry is in no way going slow or down.
Second, the data from Statista, only shows that people these days are into digital remittances, which basically means, people use online or mobile money transfer platforms to send and receive funds from whatever parts of the world.
Thanks to digital technology and the internet – all these have been made possible.
The increasing popularity of digital money transfer is becoming more and more evident as years pass by, and we won’t be surprised if one day, traditional money transfer companies phase-out.
Digital money transfer is very convenient. It’s easy and simple to use. Needless to say, some (if not most) of them allows you to receive and use your money right away regardless of the money was sent locally or internationally.
Now, these days, there are a lot of digital money transfer platforms, some of them cater not only to local money transfer but internationally as well.
One of the more popular international money transfer service providers these days is TransferWise. If you are a freelancer, most likely, you have already heard or have used it already.
If you haven’t, then, this TransferWise review is perfect for you because, in the following sections, we are going to talk more about what TransferWise is all about.
In particular, we are going to tackle the following:
- What is TransferWise?
- How does TransferWise work?
- What currencies can you send and receive through Transferwise?
- How to use TransferWise?
- How to sign up for a TransferWise account?
- What are the fees and charges involved?
- What are the benefits of using TransferWise?
- What are the downsides of using TransferWise?
- Is TransferWise safe?
WHAT IS TRANSFERWISE?
TransferWise originated in London. It was established in 2010 by two financial gurus namely, Taavet Hinrikus and Kristo Kaarmann. Both of them have very impressive business and financial backgrounds.
TransferWise was created to provide online money transfer services, which allows users to send and receive funds for both personal and business reasons.
Unlike other international digital money transfer service providers, TransferWise is compatible with a wide range of currencies (over 750 currencies to be more specific), which makes it an ideal choice particularly among freelancers from different parts of the world.
Apart from the fact that it carries a wide range of currencies, TransferWise has also earned popularity among digital money transfer users because it offers a cheap way to send money specifically from the United Stated to about 80 countries worldwide.
Exciting things about this company do not end there!
Furthermore, TransferWise offers the best exchange rates you will ever find. Needless to say, users can do fund transfers in different ways like through a bank account or credit card. However, the recipient has to have a bank account in order to receive the money sent by the sender.
TransferWise, while it is easily accessible through its website, does have an amazing app as well, which is available for both iOS and Android users.
TransferWise has definitely up their game when it comes to international digital money transfer services, and in the succeeding sections in this TransferWise review, you’ll know more exciting information about what this company has to offer.
HOW DOES IS TRANSFERWISE WORK?
Now that you already have an idea about what TransferWise is all about, let’s proceed with how this digital money transfer service provider actually works.
First of all, as a user, you have to ensure that you transfer funds through bank transfer to your TransferWise account.
Once the funds are already in your TransferWise account, you can now start sending money wherever in the world. In the same way that once you’re done creating your account, you can automatically start receiving money from other locations.
By the way, here’s an important detail you must know especially when sending money to other parts of the world with a different currency.
Before sending money, you can check the conversion rates using TransferWise’s price comparison tool. The tool will show you rates from different providers, which proves how TransferWise truly cares about finding you the best rate possible.
Once you’re good with the conversion rate, you may now proceed with providing the recipient’s name and local bank details. In some cases, you may need to verify your identity or may be asked to provide additional documentation to proceed with the transaction.
You will then have to pay a minimal fee for the transaction. Once done, TransferWise will take care of the rest, and send the funds to your receiver as quickly as possible.
For a more thorough explanation of how TransferWise works, check the video below:
TransferWise works as an Electronic Money Institution, which is licensed in the United Kingdom as well as in other jurisdictions where the company operates.
Meanwhile, for its operations, TransferWise has partnered with the world’s best and biggest banks across the globe.
WHAT CURRENCIES CAN YOU SEND AND RECEIVE THROUGH TRANSFERWISE?
As a TransferWise user, it is important to know what currencies you can send and receive money to and from.
For your reference, see the list below:
Send and Receive Money
- AUD – Australian Dollar
- BGN – Bulgarian Lev
- BRL – Brazilian Real
- CAD – Canadian Dollar
- CHF – Swiss Franc
- CZK – Czech Koruna
- DKK – Danish Krone
- EUR – Euro
- GBP – Pounds Sterling
- HKD – Hong Kong Dollar
- HRK – Croatian Kuna
- HUF – Hungarian Forint
- JPY – Japanese Yen
- NOK – Norwegian Krone
- NZD – New Zealand Dollar
- PLN – Polish Złoty
- RON – Romanian Leu
- SEK – Swedish Krona
- SGD – Singapore Dollar
- USD – US Dollar
Send Funds Only
- AED – Emirati Dirham
- BDT – Bangladeshi Taka
- CLP – Chilean Peso
- CNY – Chinese Yuan
- COP – Colombian Peso
- GEL – Georgian Lari
- IDR – Indonesian Rupiah
- ILS – Israeli Shekels
- INR – Indian Rupee
- KES – Kenyan Shillings
- KRW – South Korean Won
- LKR – Sri Lankan Rupee
- MAD – Moroccan Dirham
- MXN – Mexican Peso
- MYR – Malaysian Ringgit
- NGN – Nigerian Naira
- PEN – Peruvian Sol
- PHP – Philippine Peso
- PKR – Pakistani Rupee
- RUB – Russian Ruble
- THB – Thai Baht
- TRY – Turkish Lira
- UAH – Ukrainian Hryvnia
- VND – Vietnamese Dong
HOW TO USE TRANSFERWISE?
TransferWise is an all-online international money transfer service provider, which means your TransferWise personal account or your TransferWise business account can be opened entirely online.
You can access your TransferWise account through the website or through its mobile application, which is accessible to both iOS and Android users.
Although TransferWise is not specifically a bank, users can order a TransferWise debit card, which works like any other MasterCard debit card. The debit card can also make your TransferWise transactions simpler and more convenient.
HOW TO SIGN UP FOR A TRANSFERWISE ACCOUNT?
In this section of our TransferWise review, we are going to talk about how you actually sign up for a TransferWise account.
If there is one thing we can assure you of, signing up for an account with TransferWise could not be easier and quicker.
To sign up, all you need to do is to go visit the official website of TransferWise, and then click “Register”.
You will then be asked to choose if you are going to open a personal account or a business account (this option is very popular among freelancers and business owners).
Once you’ve chosen your preferred type of account, you have the option to sign up using your Google, Apple, or your Facebook account. Otherwise, you may opt to use your preferred email address, and then, create a unique password.
You will then be asked to verify your account. Although, you can delay this process and do it later on.
You may now proceed with the verification process wherein you will be asked to provide a valid ID as well as proof of address.
WHAT ARE THE FEES AND CHARGES INVOLVE?
TransferWise is known as the “Robin Hood” of international payment providers because of the kind of service it provides. Needless to say, TransferWise has made the cost of sending money worldwide cheaper than everyone else in the market.
Fees and Charges
The cheapest option to send money is by sending the funds from your TranssferWise account. Currently, the service incurs a fee of only around 0.4% of the total amount of money you are sending.
Meanwhile, if you choose to use your TransferWise debit card to send money, it would incur a fee of about 0.7% of the total amount you are sending.
TransferWise charges a small fee for converting currencies that you do not hold in your account. The fee is set between 0.33% and 3.56%.
Furthermore, unlike other international digital money transfer service providers, TransferWise does not add a margin to the exchange rate, which is also the reason why you get a cheaper rate than those offered by traditional banks as well as money exchanges.
Additionally, it is important to note that the same rates and fees apply to all TransferWise customers.
What’s nice about TransferWise is that you are not blindsided when it comes to fees and charges. Everything is presented upfront and explained clearly, which, unfortunately, is not the case in other online money transfer service providers.
Minimum and Maximum Amounts
There are people who are wary when it comes to choosing an online money transfer service because of the minimum amounts required.
With TransferWise, though, they only require a minimum of 1 U.S. dollars, which basically means users can send the platform to send smaller amounts of money as compared to its competitors in the market.
More so, if you need to send a larger amount of money, TransferWise does cater to it as well. In fact, the maximum amount you can send using this online money transfer service provider is up to one (1) million U.S. dollars.
However, it is important to take note that sending larger sums of money means you have to comply with your bank’s regulations. There is some that limit the amount of money you can transfer in a day.
WHAT ARE THE BENEFITS OF USING TRANSFERWISE?
This TransferWise review will not be complete without us tackling the pros and cons of using this international money transfer platform.
But first, let’s talk about the benefits of using TransferWise, which include the following:
- Low Fees. As we’ve mentioned, TransferWise has one (if not the lowest) of the lowest fees in the online digital money transfer industry. The fixed cost to a lot of countries is a combination of a flat amount, which costs $1 and a percentage of slightly less than 1% of the amount to be transferred.
- Fast Delivery. With TransferWise, you get to receive money as quickly as possible using a debit or credit card regardless of your location.
- No Rate Markups. Contrary to other banks and money transfer providers, TransferWise does not charge an exchange rate markup on its transfers.
- No Monthly Charges. Unlike other platforms, TransferWise does not charge monthly service fees.
- No Minimum Balance Required. TransferWise does not require its users to maintain a minimum balance, which means you can leave your account with zero or a few money without having to suffer certain consequences.
- High Daily Sending Limit. Unlike other online money transfer service providers, TransferWise has a higher daily sending limit which is up to $50,000 per transfer for a personal account, and $250,000 per transfer for a business account.
- Quick Sign Up and Verification Process. Signing up for a TransferWise account was made easy and quick. No hassle, definitely.
- Easy to Use Mobile App. TransferWise provides an easy to use mobile application, which is available for both iOS and Android users.
- Top-of-the-Line Security Measures. TransferWise understands the value of keeping all your information and your money secured, thus, rest assured that the platform uses the best security measures possible.
WHAT ARE THE DOWNSIDES OF USING TRANSFERWISE?
In the last section, we provided you with some of the key benefits of using TransferWise for your online money transfer transactions both locally and internationally.
Meanwhile, in this section, we are going to provide you with some of the downsides of the platform. As we always say – there’s no such thing as perfect, and TransferWise is not perfect as well.
Some of the cons of using TransferWise include:
- Slower Bank Transfer Delivery. Unfortunately, TransferWise has slower bank transfer delivery times as compared to other digital money transfer providers out there. Transfers funded using bank accounts can sometimes take over a week because each step (receiving, converting, and delivering) can take days. However, it is quicker for countries like Germany, the United Kingdom, Mexico, and India.
- U.S. Phone Support is Limited. Unlike other online money platforms in the market, TransferWise’s phone support in the United States is limited to regular business hours only. You can only reach the customer service hotline from 9 in the morning to 5 in the afternoon ET during weekdays.
- Slightly Higher Fees. For transfers paid using credit card or debit card, TransferWise charges a bit higher as compared to other service providers out there.
- No Cash Pick Up. Unlike some of its competitors, TransferWise does not offer a cash pick up option. The money sent only goes directly to the receiver’s bank account.
IS TRANSFERWISE SAFE?
Of course, this review on Transferwise has to tackle the security and safety of this platform.
Overall, we got to say that TransferWise is completely safe. In fact, it has been offering reliable money transfer service across the glove for ten years now.
Upon checking online reviews by users, a lot of them praise TransferWise not only for ease of use but more importantly, for secure transactions.
As mentioned earlier, TransferWise uses top-of-the-line security measures to ensure your information and your money is safe. These measures include:
- In-house 24/7 Digital Security – Unlike other companies, TransferWise does have its own 24/7 security team tasked to constantly monitor transactions to avoid fraud and other sketchy online activity.
- Two-factor Authentication Process – With the two-factor authentication process in place, it makes you the only person who can access your account. Furthermore, if you opt to use the mobile app, you can choose to turn on biometric locks for added security.
- Bank-level Data Encryption and Storage – TransferWise uses the same practices that banks follow to ensure the security of your information.
- Adherence to Regulatory Agencies – TransferWise is accredited by all required local and global regulatory agencies, which hold the company to strict operating standards.
With all these (and more) in place, every TransferWise user is assured that all information, as well as transactions made within its platforms, are secured and safe.
FINAL THOUGHTS ON TRANSFERWISE REVIEW
TransferWise is one of the popular international money transfer service providers today, and given all the information we provided, it is not surprising at all that they’re one of the people’s top choices.
Although TransferWise does have its share of downsides, we thought the benefits still overpowers it all. At the end of the day, TransferWise offers good service at a very reasonable price. Needless to say, exchange rates are pretty good as well as compared to other similar service providers.
With all the information we’ve shared, how do you see TransferWise? Do you think it’s the right money transfer provider for you?
Because if you were to ask our opinion, we got to say that —