While just a few years ago we marveled at their wonder, in 2024, the use of online banks has become entirely normal and everyday. Fintech companies like Wise are gaining increasing popularity, especially among those who receive their payments from abroad or regularly travel to countries using different currencies. Let's explore what Wise is, what you should know about using Wise Bank! Who benefits from it?
In our article, we provide information about using Wise Bank to our readers: find out why Wise is good, when it's advisable to use Wise Bank, who stands to gain big when receiving their payments through Wise Bank. What are the advantages of Wise Bank in terms of currency exchange, international transfers, or security? Find out how Wise works and how long it takes for a Wise transfer to be completed!
Source: 7R4G
What is Wise?
Wise is an online fintech company specializing in money transfers, similar to Revolut Bank, allowing users to hold accounts in multiple currencies, supporting the circulation of funds in over 750 currencies worldwide. Originally targeting those who receive their payments in a different currency or lead an international, cross-border life, Wise also provides a solution for those who frequently travel abroad, requiring frequent, albeit costly, currency exchanges.
The History of Wise (formerly TransferWise)
Wise was founded by Taavet Hinrikus and Kristo Käärmann. The two Estonian men worked in the UK but lost a significant portion of their income during transfers between pounds and euros. To mitigate their financial loss, they made a private agreement: Hinrikus, receiving his salary in euros, transferred it to Käärmann's bank account, who, in turn, could pay his Estonian mortgage under more favorable conditions, bypassing the pound-to-euro conversion. In return, Käärmann, receiving his salary in pounds, transferred pounds to Hinrikus's English account, benefiting both—this is the basic principle of Wise's operation.
Founded in 2011, the financial services company was initially named TransferWise, and its operations were approved in the United Kingdom in 2012. In its first year after founding, transactions through TransferWise reached €10 million, and by 2017, users were sending £1 billion monthly through the service. The company faced criticism for its advertising policies, account suspension practices, and other risks, including drawing customers away from traditional banks. After ten years of operation, the company was renamed from TransferWise to Wise.
How Does Wise Work?
The essence of Wise Bank's operation is to provide a simple and cost-effective solution for international money transfers without crossing international borders. To simplify, if you want to send money to Germany or the UK, for example, Wise Bank does not transfer the money to a foreign account but instead transfers it to your Hungarian account. Subsequently, Wise transfers the equivalent amount to the foreign bank account, effectively not crossing borders—resulting in significantly lower transaction fees for Wise and offering a more favorable exchange rate.
Good to Know About Using Wise Bank
Wise offers the advantage of no monthly account management fee, with only a one-time fee for the embossed Wise card (MasterCard/Visa card). Since September 2020, a forint-based bank account is also available (you can only transfer funds from within Hungary to a forint-based bank account). Notifications from Wise are also free, the application is available for free on Google Play or the Apple Store, and it's good to know that transfers between Wise users/friends and Wise accounts are free. If you encounter any issues using Wise, you can now request assistance in Hungarian from the Budapest customer center. Additionally, it's essential to note that Wise does not have its own ATMs, and while Wise itself does not charge a fee for up to two cash withdrawals, other banks' ATMs may deduct some amount for the cash service.
Wise Bank Services: Who Should Consider a Wise Account?
As mentioned earlier, the services of Wise Bank primarily revolve around international money transfers. Opening a Wise bank account is recommended for those who receive or send international transfers, pay foreign bills, loans, or want to convert their money to another currency at the best rate. Wise actively involves both small and large businesses, allowing them to pay employees/receive payments in multiple currencies with a corporate international account. Moreover, Wise targets travelers, providing seamless conversion and payment options almost anywhere in the world, while also offering a secure alternative for storing money.
How Long Does a Wise Transfer Take?
The duration for a Wise transfer to be credited depends on various factors, such as the currency you want to transfer/receive, the countries involved, and the method of payment (the timing of payment and the smoothness of the authentication process may also matter). Wise Bank services are known for their speed: domestic Wise transfers usually arrive within 1-2 days, while more complex cross-border Wise transfers reach their destination in 4-5 days. For domestic forint transfers, amounts under 10 million HUF typically arrive in seconds.
Wise Reviews: How Popular is Wise Bank?
Wise Bank, like other similar international fintech companies, despite once having a questionable reputation among Hungarians, is gaining increasing popularity. Although the company received criticism from users due to the frequent suspension of Wise user accounts (larger sums of money becoming inaccessible, even up to 90 days), it is becoming increasingly popular. In addition to positive impressions related to speed, certain users' negative experiences include problems with transfers and challenging customer service communication.
Source: youtube @Wise
