Wise (Formerly TransferWise): What You Need to Know in 2025

Wise—formerly known as TransferWise—is a global money transfer and multi-currency account service that’s changing the way people send, spend, and receive money abroad. Founded in 2011 by Taavet Hinrikus (Skype’s first employee) and Kristo Käärmann, Wise has grown into one of the most trusted fintech companies for international transactions.

How Does Wise Work?

Instead of sending money across borders the traditional way, Wise uses a local-to-local transfer system. For example, if you send pounds from the UK to the US, your money goes into Wise’s UK account, while their US account pays your recipient in dollars. This avoids expensive international fees.

✅ Transparent fees – always shown upfront.
✅ Mid-market exchange rate – no hidden markups like banks.
✅ Fast transfers – often same-day, depending on the method.

Key Features

• International Transfers – Send money to 70+ countries at lower rates than banks or PayPal.
• Multi-Currency Account – Hold and convert 50+ currencies, with local account details in EUR, GBP, USD, AUD, and more.
• Wise Debit Card – Spend abroad at real exchange rates with Google Pay or Apple Pay support.
• Business Accounts – Pay invoices, manage multiple currencies, and integrate with Xero for accounting.

When Wise Works Best

• Sending small to medium amounts internationally.
• Receiving payments in multiple currencies.
• Travelers, freelancers, or businesses working with global clients.

Limitations to Consider

• Not ideal for very large transfers (fees increase with higher amounts).
• Bank account required—no cash pickup options.
• First transfer may take longer due to ID verification.

Is Wise Safe?

Yes. Wise is regulated in over 170 countries, uses strict compliance standards, and keeps client funds separate from company accounts (safeguarding).

Final Thoughts

Wise is one of the most affordable and transparent ways to send money abroad, manage multiple currencies, and spend internationally. Whether you’re a freelancer, frequent traveler, or small business owner, it can save you both money and hassle compared to traditional banks.