How does Wise work: Step-by-step guide 2024

How does Wise make money?

Wise has a reputation for low cost international payments with transparent fees and great exchange rates. But Wise is a business - so you might be wondering how exactly the company makes money from the services they provide.

Transparency is a core principle of the way Wise works. Wise makes money through charging a currency conversion fee, which is split out from the exchange rate used, and which starts from 0.33%. Conversion fees vary between currencies, but you’ll be able to see the fees you pay for any service you use, before you confirm the transaction

Wise keeps fees low down by using its own payment network of accounts all over the world to process transfers. This reduces the costs involved - and Wise then passes on these savings to the customer, while still making money itself.

How to use Wise

Let’s take a look at how you can make the most of all the services and account features Wise offers - we’ll cover these in more detail in a full step by step guide in just a moment:

Once you have your Wise account all set up and verified you’ll be able to arrange international payments, or add and convert funds in your Wise multi-currency account. Wise multi-currency accounts also allow customers to send and receive international payments, and spend using a linked Wise debit card.

Here are the features we’ll cover in this guide:

• Send money transfers from your bank account (or Wise Account) using the Wise app, to 160+ countries

• Open a Wise account to hold and exchange 40+ currencies in your Wise account using mid-market exchange rates

• Receive money into your Wise account in various currencies, by sharing your local and SWIFT account details with the sender

• Order a Wise debit card, make in-store and online purchases in 150+ countries, create virtual cards for free

• Open a Wise business account to send, receive and exchange 40+ currencies

  Open your Wise account

How to open a Wise account: step by step

Wise has been created to offer an intuitive user experience with customers able to open a personal account on both the Wise Apple and Android apps, and the Wise desktop site. Here’s how:

• Download the Wise app or head to the Wise desktop site

• Register with your email, Facebook, Apple or Google ID

• Complete the verification step

• Top up your account, order an international debit card or set up your first transfer

What documents do I need to get verified on Wise?

To keep customers and their money safe, Wise has to complete a verification step when you open an account or set up an international payment. This is to comply with legislation around the world and prevent fraudulent or illegal account use - banks need to do this when customers set up accounts too.

However, while you might have to visit a branch to verify your bank account, the good news is that you’ll be able to complete the Wise account verification process entirely online or in the Wise app. Usually you’ll need to upload images of your ID and proof of address, and/or a selfie of you holding your ID. You’ll be guided through the process and can always save your progress and come back to it if you need to.

A valid ID can usually be:

• Passport

• National ID card

• Photo driver’s licence

Valid proof of address documents include:

• Utility bills: gas, electric, or landline phone (no mobile phone bills)

• A bank or credit card statement (photo/scan of a physical letter or PDF of statement)

• A council tax bill, or a HMRC notification

• Vehicle registration or tax

• Photo driving licence showing your address and expiry date

• Any other government or financial institution-issued document

If you ever need any support while you’re completing the verification step, the Wise customer service team is on hand to advise you - by phone, online or in the Wise app.

How to open a Wise business account

Opening a business account is just as easy. Business accounts are perfect for entrepreneurs, freelancers and business owners who need to pay and get paid in foreign currencies. Here’s how to get your Wise business account in just a few simple steps:

• Download the Wise app or head to the Wise desktop site

• Register by adding details about your business, and yourself as the account holder

• Set up and pay for a transfer - if you’re opening a full Wise account you’ll also need to pay a one time fee

• Complete the verification step if required - you’ll be guided through this step if it’s needed

• You’re ready to go once the Wise team has verified your account

How do I verify my business on Wise?

Verifying your business account on Wise is entirely done online or in the Wise app. You’ll usually be asked to upload images of some key documents which can be used to verify both you and your business.

In most cases, as well as your business documentation which can vary based on entity type, customers looking to open a Wise business multi-currency account will need to provide  the names, dates of birth, and countries of residence for any directors and shareholders who own 25% or more of the business.

The exact paperwork and information required will vary based on the type of business you’re running - you’ll be able to follow the on-screen instructions to check what’s relevant for you.

What details do you need from your recipient?

The good news is that your recipient does not need to have a Wise account to be able to receive a transfer that was sent with Wise. Your Wise transfer will be deposited directly into the recipient’s bank account, so the recipient needs to give the sender their bank account details.

Exactly what’s needed can vary a little based on the country you’re sending money to, but you can usually expect to need these details from the recipient:

• The recipient’s full name as shown on their bank account

• The recipient’s bank account number or IBAN

• The recipient’s bank name

• Country specific information, like a routing number for the US or a BSB for Australia

Transfer limits and payment methods supported by Wise

If you’re sending with Wise and paying using GBP the normal limit is 1 million GBP per payment. However, the payment method you choose might mean limits are lower - there’s a lower limit when sending GBP by card, for example.

You’ll only be shown the payment options which are available based on the amount you’re trying to transfer with Wise. So, if your payment exceeds the card limit, you won’t be shown credit or debit card as a funding method you can select.

How to send money Wise to Wise

You can send a Wise transfer to a bank account - or you can choose to send a payment to another Wise account. That’s perfect if you’re sending a payment to a friend, splitting a bill or simply looking for the easiest possible way to make a transfer - without needing to know the recipient’s full bank details.

You can send money from your Wise account to another Wise account simply by using the recipient’s phone number - which makes it super easy to send to anyone already in your contacts:

1. Open the Wise app

2. Check you’ve opened a balance in the currency you want to send or receive

3. Tap Recipients in your Wise app

4. Select Find friends on Wise

5. Choose the option to Sync contacts

6. Select the contact you want to send to, and set up the transfer as usual

If you don’t have your recipient in your contact you can still send a payment - entering their email address is usually the easiest way. If they’re already on Wise you’ll be able to make the transfer directly, and if not, they’ll get a message prompting them to set up a Wise account so you can pay them.

How long does a Wise to Wise transfer take?

Wise to Wise transfers usually arrive within seconds. You’ll be notified once the payment is being processed and both the sender and the recipient will get a notification once the transfer has successfully been received in the recipient’s Wise account.

Is Wise to Wise transfer free?

Wise to Wise transfers are free of charge when there’s no currency exchange involved. If you’re converting currencies, you’ll be able to make your payment with the mid-market exchange rate and just Wise’s low, transparent conversion fee to pay.

How to cancel a Wise transfer

Whether or not you can cancel a Wise transfer will depend on the status of your payment at the point you decide to cancel it. You’ll need to log into your Wise account app, and then navigate to the transer you want to cancel. If you can see a Cancel button, this means the payment has not yet been processed and all you need to do is tap Cancel to stop the money from being sent.

If you do not see the Cancel option you’ll need to get in touch with the Wise team by starting a chat in the Wise app. If they’ve not yet sent your money they might be able to cancel the transaction, but if the money has already been received by the recipient, they can’t retrieve it for you. You’d need to contact the recipient and ask them to send you the money back.

How to deposit money in my Wise account

When you open your Wise multi-currency account you’ll be able to open currency balances in any of a selection of different global currencies. That makes it easy to add money to your Wise account using your local bank details, or through the Wise app.

First let’s look at how you deposit funds in Wise via the app:

1. Select the currency account you’d like to add money to

2. Click Add

3. Enter the amount you want to add and the currency you’d like to pay with

4. Select how you’d like to pay, and click Continue to payment

5. Depending on how you’d like to pay, you’ll be guided through the payment steps

Alternatively you can use your local or SWIFT account details for any of the eligible currencies, to make a transfer right from your bank account into Wise. Just log into your online banking network and follow the steps to make a payment like you normally would. Don’t forget though, banks are likely to charge a fee to convert currencies - so you’ll only want to use your online banking to top up Wise in the same currency as your account. Once you have a Wise balance you’ll be able to convert it instantly in the app with Wise’s great rates and low fees.

How to receive money with Wise

If someone is sending you a payment with Wise you can either receive it into your bank account, or choose to have it deposited into your Wise account using your local or SWIFT account details, depending on the currency.

Wise accounts come with the option of getting local and SWIFT account details to receive payments a selection of currencies including:

• British pounds

• Euros

• US dollars

• Australian dollars

• New Zealand dollars

• Singapore dollars

• Canadian dollars

• Hungarian forint

• Turkish lira

Whether you’re having a Wise payment sent to your bank account or deposited in your Wise multi-currency account you’ll just need to give the sender your account details, and the funds will be deposited as soon as they’re cleared. In many cases, you could have your money almost instantly.

Receive money with Wise

What details do I need to give to the sender

Your sender will be able to confirm the details they need based on the way they’re setting up the transfer. However, usually, you’ll need to give them:

• Your full name as shown on your account

• Your account number or IBAN

• Your sort code (for GBP payments)

If you’re having your money sent to a Wise currency balance other than GBP you might need to give slightly different details in addition - like a routing number and local bank address for USD transfers. All the details you need are available in the Wise app or by logging into your Wise account on the desktop site.

Do you need a Wise account to receive a money transfer from Wise?

No. If you don’t have a Wise account you can simply give the person sending you money your bank account information. The sender can process the payment to your bank, via Wise, and still benefit from the great Wise exchange rate and low fees.

Wise fees

Wise international transfer fees are split out from the exchange rate used, which makes them easy to check and compare. You don’t need to register a Wise account to get a quote for the fee and exchange rate for your payment, you can simply enter the details online to generate instant information. As an example, here’s the live Wise fee at the time of research for sending 1,000 GBP to euros and US dollars:

*Data correct at time of writing - 25th November 2024

Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Wise exchange rates

Wise currency exchange uses the mid-market exchange rate with a small transparent fee. Fees vary based on the currencies involved, but can be as low as 0.33%.

How to get a Wise debit card

Once you have a Wise account you’ll be able to order a Wise debit card to make it easier to spend and withdraw money all over the world. Here’s what you’ll need to do:

• Log into the Wise app or desktop site

• Select Cards on the website or Android phones, or Account if you’re using an Apple device

• Follow the prompts to order your card, and pay a one time 7 GBP fee

• Your Wise debit card will be  with you in 2 - 6 days

Once you’ve successfully ordered your Wise debit card you’ll be able to view your card details, and use your virtual Wise card for spending online. That means you’ll be able to get started before your physical card even arrives through the letterbox. Once your physical card does arrive you’ll need to activate it by making a chip and PIN purchase, or a withdrawal using your PIN at a regular ATM.

The Wise card is available for customers based in countries including the UK, the US, Switzerland, Australia, New Zealand, Singapore, Malaysia, Japan, Canada, Brazil and most countries within the EEA.

Wise digital card

Once you’ve ordered a Wise physical card you can also instantly generate a Wise digital card in the Wise app. Just tap the Cards tab, then Order Card, and pick the Digital card option.

You can generate a digital card right away to spend online and in person through a mobile wallet like Apple Pay. Just add your card to your preferred mobile wallet and tap and pay wherever contactless is available.

Digital cards have different card numbers to the physical Wise card you’ll hold. That adds an extra layer of security. If you’re ever concerned your digital card has been compromised just destroy it and generate a new one with different numbers. There’s no need to cut up your physical card because the numbers are unique, so you can continue to use that as normal.

How to withdraw money from Wise

Once you have a balance in Wise you can use your funds to send payments, spend with your Wise card, or withdraw your money to your bank account.

If you’re making a withdrawal from an ATM using your Wise card, you’ll be able to make up to 2 withdrawals, worth no more than 200 GBP, for no fee. After that, you’ll pay a low charge of 0.5 GBP + 1.75% of the withdrawal value for each withdrawal.

Sending money to someone else - or withdrawing money to your own bank account - may have a small fee depending on the currencies involved and how you set up the transfer. You’ll be able to see all your options - and any fees involved - by logging into the Wise app or desktop site.

How does Wise know which currency to use?

If you’re using your Wise card to spend or make a withdrawal, and you have enough balance in the currency you need, the card will simply deduct the amount from that currency balance. If you do not have enough of the required currency to cover the costs of a particular transaction, the Wise card will convert from whichever of your Wise currency balances incurs the lowest fee.

How to use the Wise app

The Wise mobile app is available for both Apple and Android phones. The Wise app is safe to use, with 2 factor authentication processes, and robust security. With the Wise app you’ll also be able to freeze and unfreeze your Wise card in just a tap, and check your balance in a glance. Instant transaction notifications will keep you up to date - and give peace of mind as you’ll be able to see everything that’s happening with your account in real time right from your phone.

How long does an international money transfer take with Wise?

Wise international transfers are fast. In fact, 45% of Wise transfers are instant, and the vast majority of payments arrive within 24 hours.

In contrast, sending money overseas with your bank can take 3 - 5 days depending on the destination country - and even longer if the currencies involved are less commonly used.

Send fast international payments

Who owns Wise?

Wise is a publicly traded company, listed on the London Stock Exchange.

Is Wise safe?

Yes. Wise is safe to use.

As an international company, Wise is also overseen and authorised by other regulators around the world, so you’ll know your money is safe no matter what currency you hold with Wise.

Wise also keeps customers and their money safe with manual and automatic processes like account verification, fraud detection and prevention protocols, and secure log in requirements.

How to contact Wise customer service

The easiest way to get support from Wise is to log into your account and open an in-app chat. This will point you to common questions and answers and self help resources, and can also connect you to a live customer support agent if you need individual help. As an alternative, you can call Wise in the UK on 0800 8781 204.

Conclusion

Wise emerged over a decade ago with some pretty revolutionary ideas about how to make international transactions easier, cheaper and more transparent. Today 16+ million customers trust Wise to help them save money through Wise low cost international transfers and multi-currency accounts for individuals and businesses.

Using Wise is simple, and you’ll be able to access your account and all Wise services right from your laptop or smartphone. From setting up your account and getting verified, to sending your first payment, switching between currencies or withdrawing funds back to your bank, you can manage your money easily and cheaply, without even needing to leave home. Check out Wise low cost international payments and multi-currency accounts today to see just how much time and money you can save.

Go to Wise

How does Wise work FAQ

Do I need a bank account for Wise?

Wise accounts come with local and SWIFT account details for 8+ major global currencies which means it’s easy to manage your money across currencies - even if you don’t have a bank account in the currency you need.

Use your Wise details to get paid into your Wise account, to send transfers around the world or spend and withdraw with your Wise international debit card.

Can you deposit cash into a Wise account?

You can not deposit cash into a Wise account - you’ll need to add funds using a linked bank account or card, or have someone send you money using your Wise account details which are available in 8+ different currencies.

What is the maximum you can send on Wise?

Wise maximum sending limits are set by currency - usually you can send the equivalent of up to around 1 million GBP. Log into Wise to check the sending limits for the currencies you need.

How long does it take to transfer with Wise?

45%+ of Wise transfers are instant, and 80%+ arrive within 24 hours. Banks, on the other hand, can take 3 - 5 days to move money internationally.

Is it safe to keep money in your Wise account?

Yes. Wise safeguards all customer funds by holding the money in top tier institutions separate from their own working capital. This ensures that your money is protected even in the unlikely event that Wise were to get into financial difficulties.

How can I open a Wise account?

Open a Wise account online or in app, by entering your personal and contact information and uploading your proof of ID and address.

Does Wise use the mid-market exchange rate?

Yes. Wise currency exchange uses the mid-market exchange rate with a small transparent fee. Fees vary based on the currencies involved, but can be as low as 0.33%.

Can I use Wise to receive money?

Yes. If someone is sending you a payment with Wise you can either receive it into your bank account, or choose to have it deposited into your Wise account using your local or SWIFT account details, depending on the currency.

What documents do I need to verify my account in Wise?

You can usually verify your UK Wise account with your ID - like a passport or driving licence - and a proof of address. Various different documents can be used as a proof of address, including utility bills in your name, bank statements or official letters from an agency like HMRC.