Wise: account, card, money transfer, prices, everything you need to know

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While the fintech sector is struggling, Wise is trying to establish itself as a new benchmark with some very original ingredients. This neobank, which now has more than 12 million active users, aims to stand out with its money transfer functionality at competitive costs. But it is now much more than that. Here is everything you need to know about Wise.

Born in 2011 under the name TransferWise, the company is the result of the collaboration between two Estonian friends, Taavet Hinrikus and Kristo Käärmann. They started from a simple observation: bank fees for international transfers were excessive and not very transparent. From this frustration was born an original solution for the international money transfer sector.

Now listed on the London Stock Exchange, Wise has developed its own international payment network, allowing it to bypass the traditional SWIFT banking system. This approach has allowed the company to significantly reduce transaction costs, while offering significantly shorter transfer times than traditional banks.

Now known as Wise, the company is now much more than a money transfer service. It offers a current account, a bank card and an offer for professionals. Everything is obviously managed from an all-purpose application, as simple as it is effective.

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Wise now offers a complete ecosystem of financial services. At the heart of this offer is the multi-currency account that allows users to hold and manage more than 40 different currencies. This account comes with local bank details in 10 major currencies: users can receive payments as if they had a local bank account in each country.

The platform also stands out for its pricing transparency. Unlike traditional banks that often apply hidden margins on exchange rates, Wise systematically uses the mid-market exchange rate, charging only fees that are clearly displayed before each transaction.

The Wise transfer system is based on a system that avoids traditional international transfers. Rather than physically sending money across borders, Wise uses a network of local accounts in each country where it operates.When a customer wants to make a transfer, the money is first deposited into the local Wise account in the origin country. Then, the Wise account in the destination country pays the equivalent to the recipient in the local currency.

This trick not only significantly reduces costs (up to 4 times cheaper than traditional transfers), but also speeds up transfers. According to the company, 40% of transfers are instantaneous, 63% take less than 20 seconds, and 80% are completed in less than 24 hours, significantly faster than the 3 to 5 business days typically required for traditional international transfers.

The Wise account stands out from traditional bank accounts in its flexibility and international scope. It allows users to manage their money in over 40 different currencies, with the ability to instantly convert between currencies at the mid-market exchange rate. Each user can obtain local bank details in 10 major currencies.

To ensure secure transfers, funds are protected in regulated banks (350 major banks are partners) and the account benefits from two-factor authentication. The mobile application, available on iOS and Android, allows for complete account management, with real-time notifications for each transaction.

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Wise offers two types of complementary cards. The physical card (VISA), usable in more than 170 countries, allows you to pay and withdraw money anywhere in the world. It offers two free withdrawals up to €200 per month and applies transparent exchange fees. It is also compatible with Apple Pay and Google Pay.

Wise also offers a virtual cardwhich provides more security for online purchases. Users can create up to three virtual cards simultaneously. These cards can be instantly frozen or unfrozen via the application. Features that are already found in many competitors but which remain very interesting on a daily basis.

Wise also targets professionals with its Wise Business offer. It meets the specific needs of companies with international activity. The Wise Business account offers all the features of the personal account, enhanced with professional features such as multi-user management, integration with accounting software and the ability to make batch payments of up to 1000 transactions.

One of the most popular features is the payment API, which allows businesses to automate their international financial transactions. While the account requires a one-time setup fee, the lack of a monthly subscription makes it particularly attractive to small businesses, SMEs, and startups.

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Wise stands out for its pricing transparency and its policy of gradual cost reduction. Opening a personal account is free, and there are no fees for holding foreign currency. For international transfers, Wise has a simple fee structure: a fixed amount per transaction and a variable fee starting at 0.33% of the amount for major currencies. The international debit card costs €7, with no monthly subscription fee, and offers two free withdrawals up to €200 per month. Above that, a fee of 1.75% + €0.50 per withdrawal applies.

Wise’s business model relies on multiple revenue streams. While the company continually reduces its transfer fees, it generates significant revenue from customer deposits. Money deposited into Wise accounts allows the company to generate interest income, some of which is returned to customers. To date, interest income has reached £230.2 million, of which 37% has been returned to customers. Wise can also rely on Wise Platform, an integration solution offered to companies all over the world.

Wise's growth strategy seems to be working, as evidenced by the 55% increase in its profits in the first half of 2024, reaching £217.3 million. This performance is explained in particular by an active customer base up 25%, now totalling 12.8 million users (11 million cards distributed) including more than 500,000 in France. Revenues from cards and other services also saw strong growth, representing 29% of total revenues, compared to 23% the previous year. According to Wise, €3.4 billion has been invested by clients, €35 million in foreign currency is in circulation, or 4% of the global volume of individuals.

Wise appeals to a wide range of users, but certain profiles particularly benefit from it. Expats and frequent travelers appreciate the ability to hold multiple currencies and use an international card without hidden fees. Freelancers working with international clients benefit from local bank details to receive their payments without additional fees.

Businesses expanding internationally find Wise a comprehensive solution for managing their cross-border financial transactions. Students abroad also appreciate the app’s fee transparency and ease of use. The neobank is particularly appealing to young technophiles, accustomed to digital solutions and sensitive to price transparency.

Finally, although the brand does not communicate on this niche, Wise turns out to be the best service for expatriate users wishing to provide financial support to their families who have remained in their country of origin.

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