International money transfer has been deceptively expensive due to its high fees and exchange rates. As a result, the recipient recieves only a limited amount. Therefore, to have a cheaper, better, and the safer platform is of utmost importance.
Transferwise had evolved as a problem solver to many individuals subjected to pay high amounts in transferring money to some other country. With offering minimum transfer fees and mid-market exchange rates, transferwise has proven to be an excellent service since its launch in 2011.
Transferwise has grown to a significant level since its launch as the demand for easy and cheap money transfers across borders rises. The advancing world with flourishing online businesses needed a platform to be financially interdependent even across the borders.
Working strategy of transferwise
Transferwise uses a smart approach to let people send money internationally safe with no extra charges as added by most banks. It dozes people from the hassle of one international transfer by making a double local transfer. Hence making life easier.
The company has vast reserves of multiple currencies. Therefore, despite directly sending a thousand euros to someone in Canada, transferwise increases their euro reserves and gives the recipient equivalent Canadian dollars with their Canadian based account on mid-market exchange rates. Hence saving people’s money to a significant level.
With its transparent fees structure and no hidden charges, it has made an individual’s life easier by saving him from paying unfair costs for international transfers.
Transferwise fee structure
Transferwise offers a transparent and straightforward fee structure for its customers. No requirements of monthly memberships of maintaining and opening accounts.It charges five euros for the debit card, and atm withdrawals are free up to 200 euros per month, 2% charges of the withdrawal amount on the extension of limit. Moreover, the fees for sending money depends on the type of currency. You can have a look at their pricing according to currency on their website.
In terms of currency management, the number varies with different scenarios, like the currency’s availability, the currency for account opening, money to be used in the app, or currency used for the top-up purposes.
Currently, transferwise offers a current account in five currencies; AUD, EUR, USD, GBP, and NZD. Moreover, you can use up to forty-four currencies in your app to exchange your money with and top up your account with eighteen different currencies.
Benefits of using transferwise
There are several benefits of using transferwise for an individual:
- Eight times cheaper money transfer comparing with the traditional bank transfers
- Offers mid-market exchange rate with no hidden or extra charges.
- A quick and simple process of transferring money abroad.
- It is safe and secure as it is under the regulation of financial conduct authority, just like any other bank.
- Money transfer occur directly to the recipient’s account.
- Open a borderless account with up to forty different currencies.
- Get access to a MasterCard, and spend money quickly, even across borders.
Limitations of transferwise
With multiple benefits, there are few limitations as well.
- Transferwise is cheap but slow. It tends to have a more time-consuming process of transferring than competitors.
- The cash deposit in your account can cost you a little.
- It only offers transfers to bank accounts.
- No budgeting and spending tools.
Although in the well-established market of neobanks, transferwise lacks few features in comparison to its customers. However, the provision of transparency and supply of minimum transfer rates has made its worth in the market.
Moreover, the platform is on a journey of improvement and has proven to be one of the best transfer platforms.