Send money abroad within minutes- as fast as possible for as little as possible, safe with low fees and exchange rate

Triin • 23 Mar, 2020

Can You minimize the distance money has to travel and reek the benefits as a business owner ?

This once-in-a-century pandemic is hitting the world economy saddled with record levels of debt, and the loss of trust in the banks probably will accelerate the uptake of fintech, thus in order to survive as a business owner, re-evaluate and cut costs, there is no better time then today to get started. Only proactive measures result in success coming out in the other end of this global crisis with a head held high.

 Traditionally, sending money across international borders has been difficult and expensive, limiting the practical advantage of doing so mostly to large international corporations. Few individuals have the means of setting up local bank accounts in every country where they may have clients, friends, or family with whom they need to transact. TransferWise works by having you make a bank transfer to TransferWise through your borderless account. TransferWise saves you money by taking a small percentage of the transaction, rather than having you pay a credit card transaction fee or a bank transfer fee. This is a better, cheaper, fairer system for anyone who lives, travels, or does business across borders.

TransferWise is the new, transparent and cost-effective way to make money transfers around the world. Promising savings to consumers and SMEs alike, check out the benefits of this peer-to-peer model, and see how much you could save on a traditional currency deal by reading the list of pros and our own experience below.

TransferWise’s mission

 Make sending money instant, convenient, transparent, and eventually free.

The Cheapest Way to Send Money Online- TransferWise

The main benefit of using your TransferWise account over traditional accounts is that you won’t be charged international transaction fees or outrageous exchange rates. You’ll always get the real exchange rate and the lowest possible fees.

In addition to saving you money on fees, they convert your money at a mid-market exchange rate which beats out comparatively higher rates at other transferring companies. On top of all of those benefits, Transferwise also allows you to make payments via bank transfer, such as with your debit and credit card.

How The Founders Of TransferWise Came Up With The Idea For Their Billion-Dollar Company ?
It’s actually pretty easy to explain what TranferWise does. It lets people transfer money between different countries and currencies for a lower cost than that of a standard bank transfer. TransferWise avoids international bank-transfer fees by keeping the money transfers inside the country, using domestic accounts to minimise the distance that money has to travel.

But the way it does that is the clever part.
TransferWise’s founders, Kristo Käärmann and Taavet Hinrikus, stumbled upon the idea for their company when they were trying to transfer money between countries.

taavet-and-kristo

Founders. Kristo Käärmann (on the left) Founder and CEO. Taavet Hinrikus Founder and Chairman.

Hinrikus moved to the UK from Estonia in 2006, and he told London Loves Business that he often needed to transfer money from his account in Estonia to his account in the UK. The trouble was, every time that he transferred money, he would be hit by transfer fees, often as much as 5%. At the same time, Käärmann was also working in the UK, but he needed to continually send money to Estonia to pay his mortgage.

The idea for TransferWise surfaced when its two founders realized that they could cut down on money-transfer costs by paying each other’s expenses. Hinrikus used his money in Estonia to pay for Käärmann’s mortgage, and Käärmann used his money in the UK to send payment to Hinrikus.


Indrek Peenmaa

” There are lots of benefits for using Transferwise for small and medium size businesses.”

  1. I have years of experience from travel business. Our company is based in Estonia which is a euro-zone country, but very often we have customers from United States, Canada, Australia and the tours they are taking take place in Denmark, Norway or Sweden. It means that there are several transfers and currency conversions involved.
  2. You will save significantly from regular bank transfers which are coming from countries which are not part of Euro zone. Transfer from United States costs approx 50 USD combined for transaction costs for both parties. In addition to that there may be currency conversion costs of several percentages.For Transferwise conversion costs are only around 0.5%
  3.  Speed for regular transfers – We are sending money out to Denmark and it will arrive within few minutes. there is a huge value in it, if you can pay your suppliers so quickly.
  4. One clear benefit with Transferwise is that it is irreversible. If you have got the payment, the money is in your bank account. There are no risks like with credit cards which might be hacked, stolen or some customers just ask refunds without having the right to do so. Credit cards are convenient, but if you are selling high cost low margin services, you will have significant risks open.
  5. Secondly, credit card fees are much higher – around 3-3.5% for transfers coming from outside of euro-zone. I would better give this saving to customers.
  6. Transferwise opened Borderless bank account system which allows us to be even more effective. We can get money to our virtual US bank account in dollars and pay out in Danish crowns. It means that we can skip conversion to EUR completely.It means that you can get money from your customer in US and send further to China and will arrive already in few minutes after you got the money.
  7. If customers pay our tours by credit card, they bank will charge high conversion fees when converting from USD to EUR. As an example, Paypal will take 2.75% additional profit from conversion rate which is in my mind outrageous. If customers pay for tours in Copenhagen through Paypal and we send it further to guides, there is almost 6 % lost to Paypal.
  8. Great Reviews
    Often when I consider using a service I will look at reviews. TransferWise has some of the best service reviews on www.trustpilot.com with a review average of 4.6/5 for over 84,000 reviews. If you haven’t heard of Trustpilot before, it’s a site which businesses and services from all around the world use, to ask real customers to leave honest reviews. It is, in my opinion, one of the best and most trustworthy review sites going.
  9. There is some time needed to go through the account verification process once you set up your Transferwise account, because the fight to avoid money laundering is bigger thing every year. You will need to send some pictures about your documents and utility bills what you can make with your mobile phone – it is not that hard and is a one-time thing.” To sum up, the speed and lost cost for money transfers makes Transferwise one of the most important partners we have.”
 HowTransferWiseWorks_V1b

1. Check out fees and exchange rates at TransferWise

Use TransferWise calculator on the TransferWise homepage to se how much money you want to send, and where you want to send it. You’ll see fees and exchange rate upfront, even without logging in. So you can always check to make sure you’re getting a great deal.

TransferWise uses the real exchange rate – it’s the rate you’ll find on independent sources like Google, XE, and Yahoo Finance. TransferWise fees are as low as 0.35%.

Like it so far? Send money now.

2. Create your free account

It’s free to create an account with TransferWise and your recipient doesn’t need to use TransferWise for you to send money to them. You can sign up as an individual and, if you have a business, you can add your business to your TransferWise account – on desktop, mobile, or with our award-winning apps – android and iOS.

Depending on the country you’re sending from, TransferWise might need to have you verified. Verification will take 1-3 days. See when you need to be verified.

3. Tell TransferWise where your transfer is going

Tell them who you’re sending the money to, along with their local bank details. You can send money to yourself, someone else, or a business, depending on the country.

Your recipient doesn’t need a TransferWise account to get their money. Just a bank account.

4. Pay for your transfer

Pay by credit or debit card or make a local bank transfer to TransferWise’s bank account in your country. You don’t have to link your bank account to TransferWise (unless you’re sending from Canada or the US).

Depending on the country you’re sending from, you might have other payment options.

5. Leave the rest to TransferWise

TransferWise smart technology links local bank accounts in countries all over the world. If you provide your recipient’s email address, TransferWise will also give your recipient a heads up to let them know your money is on the way. It will go right into their bank account.

Ready to start saving? Send money now.

If you have more questions, check out the smart TransferWise Help Centre.

Bonus

Inviting friends is key to the TransferWise revolution. The more people send money on TransferWise, the better it is for everyone. Earn real money when you refer friends who become TransferWise users.

Invite your friends.

How can TransferWise be so cheap?

Banks overcharge you when you send money abroad. Take a look at the video here to see with your own eyes:

How does Transferwise work?

 

Where can TransferWise send money?

TransferWise has a network of bank accounts globally in various countries, enabling us to support members in all of our currencies above. Here’s the full list of supported TransferWise countries.

No hidden fees. No bad exchange rates. No surprises.

What are the benefits of using TransferWise?

  • Send money abroad eight times cheaper than using your regular high-street bank
  • Transaction costs are always transparent, unlike some other providers which add a markup to the real exchange rate in addition to their fees
  • TransferWise international payments on major routes from the UK and Europe are delivered within 24 hours – compared to 3-7 days for a regular bank. In fact, 25 percent of all transfers from the UK to Europe are delivered within seconds
  • Arrange your transfer online for convenience
  • TransferWise is regulated by the Financial Conduct Authority, just like a UK bank, and trusted by 3 million people around the world
  • Your money is sent directly to your recipient’s bank account
  • Suitable for both business and personal use

 

Get a alternative to an business bank account. Invoice like a local, avoid fees on Stripe, and spend on a debit card.

Learn more →

Small- to medium-sized businesses

Open a self-service business account online to send, spend, and receive multiple currencies, and make batch payments.

See how it works →

How long do transfers take?
Ninety percent of transfers to Europe from the UK are completed within one business day.

TransferWise for business
If your business transfers money overseas regularly, TransferWise can help save you money by giving you access to the real mid-market rate of exchange, and charging only a small, fixed fee for transfer. You can get a TransferWise multi-currency borderless account for business, which holds balances in more than 40 currencies, to send and receive payments all over the world.

TransferWise will not only save you money on international payments, it is also a more efficient and professional service. You and the recipient will know exactly when money is due to arrive and you will receive an email confirmation for your financial records.

I’m a one-off or infrequent user, is it worth using TransferWise?
If you are making a big one-off purchase abroad, or sending money to a friend or relative, TransferWise can help. It is a fast and safe payment service with only a small usage fee (payments made from GBP to EUR cost 0.35% of the total amount + 80p). By signing up to use it, you will avoid the costly exchange rate levied by a traditional bank on your purchase. There is no lower limit on use, so even if you are not a frequent user, you could make savings.

I’m a freelance worker, how can TransferWise help me?
If some of your invoices are paid from abroad, TransferWise can help you to keep more of the money you have earned by avoiding costly bank rates. Simply arrange with your contractors to be paid through TransferWise and you won’t see your earnings eaten into by bank charges.

You might benefit even more if you open a TransferWise multi-currency borderless account. You’ll get local bank details to receive fee-free payments in GBP, EUR, USD and AUD, and can hold your balance in any of over 40 currencies within the same account.

Both offer the option to send international invoices, but PayPal’s fee structure equals high fees. TransferWise enables you to invoice your clients in their currency and receive money with no fees. PayPal’s exchanges rates are terrible (and unfair), and impossible to predict.

TransferWise fees are lower
International transfers in foreign currencies are cheaper with TransferWise. They do not charge increases on the exchange rates, because the company uses its own accounts in the recipient’s country. How?

TransferWise does not literally transfer money from one country to another – instead, they transfer the requested amount from TransferWise’s own account in the recipient’s country to your recipient. This way, the surcharges that normally apply to cross-country transfers do not apply to TransferWise, allowing them to only charge a small fee from users. This fee is noticeably lower than both bank fees and PayPal rates.

 

TransferWise vs PayPal

PayPal’s fee structure is quite complicated. The amount you pay depends on your transfer amount, where you’re sending the money and whether you pay for the transaction with your PayPal balance, bank account or credit/debit card. Fees for transferring out of the US range from $0.99 to $4.99 USD + 2.9% of the transaction amount. There’s also a small fixed fee for sending in a foreign currency.

TransferWise always uses the real exchange rate without surcharge. Instead, the sender pays a commission fee. Currently, the GBP-USD conversion incurs a 0.4% fee of the amount sent.

With money received in your PayPal account, you pay an increase of 2.5% on the base exchange rate to convert it into another currency. For sending money that is not in GBP, a currency conversion fee of 3.5%-4% is added to the base exchange rate plus a cross-border fee of 0.5% for UK-based account holders. In addition, a fixed commission of £1.99 is applied to transfers to Europe, Canada and the United States, or £3.99 if you send to the rest of the world.

TransferWise is a specialized service for international bank transfers and does not provide additional features for commercial purposes.

TransferWise focuses on savings and transparency
Both companies have dedicated apps for checking your balance and place transactions directly from a phone or tablet. These apps are available for free in the App Store for iOS/Apple devices and Google Play for Android devices.

TransferWise app

In the TransferWise app, a calculator tells you exactly how much the recipient will receive based on the amount you want to send, or you can edit how much the recipient should receive in their currency and it will tell you the amount to transfer. The same functionality is available on the site for all visitors, with the option to compare the costs of TransferWise to its main competitors. The tool effectively promotes cost savings: as you’re able to quickly check the currency exchange rate, it becomes easier to make the transfer at the best moment.

PayPal Cons

PayPal does not have such a calculator, but tables are available on the website showing the exchange rate applied. It will, however, still be possible to verify the commissions applied before submitting a transfer. Being cheaper for foreign currency transfers, TransferWise understandably focuses on cost transparency.

 

Is TransferWise Safe for Sending Money?

If you have never transferred money online, you are probably wondering whether it is safe or not to transfer money with TransferWise. We can tell you that transferring money with TransferWise is definitely safe, as the company is a license Authorized Electronic Money Institution. This means that the company is regulated in the United Kingdom by both the Financial Conduct Authority (FCA) as well as by the Majesty’s Revenue and Customs (HMRC). In addition to the security, they include a 256-bit SSL encryption with a 2048-bit signature, which makes the website 100% safe and trustworthy.

How to Use TransferWise?

To get started with TransferWise, the first thing you need to do is create an account on their website. You can do that by either signing up for your Google or Facebook account; it should only take a couple of minutes to get your account registered. If you are ready to transfer your money, simply set up your transfer in your new account. At this point, you will have to put in the amount you are going to send and where you want to send it to. Once you have done this, you can choose your payment methods, such as debit or credit card or Apple Pay. After this, TransferWise will convert the money at the mid-market rate and send it to your recipient’s bank account. Once you have finished the process, you will receive a notification email that you have set the process in motion. You will also receive an email notification once the money reaches its final destination.

In order to comply with anti-money laundering regulations, TransferWise will ask you to verify your identity by requesting that you send a copy of an identification document such as your passport, national id, or driver’s license. They will also ask for proof of your current home address to verify where you are handling your transfers from.

 

“There were lots of unknowns when we started,” he says. “Would anyone trust this website set up by two Estonian dudes? Would anyone else have this problem that we wanted to solve? “And all these people around the world did have the same problem, and they did trust us.”

 

 

Disclosure: Note this post includes affiliate links. Pictures provided by TransferWise for media use.

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