| Wise specializes allows to send money across borders with lower fees and more favorable exchange rates compared to traditional banks. | |||
|---|---|---|---|
| Nonprofit discount | N/A | ||
| Used by | Human Rights Consultants | ||
| Used for | Accounting tools, Productivity tools | ||
| Pricing | Lower costs | ||
| Ease of use | Very easy | ||
| Learning curve | less than an hour | ||
| Tool website | Learn more | ||
In a nutshell
TransferWise, now known as Wise (they rebranded in 2021), has gained popularity for its transparent and cost-effective approach to international money transfers. Instead of using the traditional banking system, Wise uses a peer-to-peer system to match currency conversions within its network, which often results in better rates for users.
How does it work?
Although human rights organizations have taken measures to reduce their international travel, chances are that you are still travelling to other countries with a different currency every now and then. Traditional banks often charge high fees for currency conversions. This is why we are using Wise since more than 3 years now as one of our main business accounts and while travelling.
Once you signed up to Wise you can open accounts in different currencies with the click of a button. In addition you can swap from one currency to another instantly in a favorable rate. You can also send money to your traditional bank account if needed. This normally takes only a few seconds but in rare cases also takes 1-2 days depending on your bank. You can also request a Wise card, that you can use like a normal credit card. The difference is that Wise will automatically charge your card in the currency that you want to spend or convert your currency to the required currency before payment is made. This means you save on fees.
What is it like to use in practice?
Wise has been a significant improvement to my private and business banking because of its speed and the better conversion rates. Human Rights Careers has clients all over the globe and sometimes receives payments in USD, EUR or GBP. Since we also work with a broad variety of tech tools from different providers, we can pay them directly in their preferred currency and don’t need to worry about unfavorable rates or high fees.
Benefits of using Wise
Beside the rates, Wise enables you to attach receipts to every transaction. This is helpful when reporting on expenses. It also has the option to share access with your tax advisor making it easier to process any tax obligations you may have.
Limitations of Wise
Although this has been the exception, in rare cases international organizations or other entities may not be able to pay you. The reason is that they can only pay to an IBAN that’s registered in the same country as your country of residence. If you are e.g. working as a consultant this might be an issue. You can check if Wise offers an IBAN for your country before you sign up.
| Summary | |||
|---|---|---|---|
| Good choice if… | Not good choice if… | ||
| ✅ you pay or receive payments in multiple currencies | ❌ you work with entities that can only pay to specific IBANs | ||
| ✅ you swap money from one currency to another sometimes | ❌ you already have a similar account like Revolut | ||
| ✅ you appreciate transfers that only take a few seconds (most of the time) | ❌ you never pay in different currencies | ||
| ✅ you travel and want to pay everywhere with only one card | ❌ you don’t travel to countries with different currencies | ||
