What is Wise and how does it work?

Wise is a global financial technology company that lets you send, receive, hold and spend money internationally, using the real exchange rate and low upfront fees.

Formerly called TransferWise, Wise is a UK-based company founded in 2011 and listed on the London Stock Exchange. It offers three products: Wise Account, Wise Business and Wise Platform, and more than 16 million customers use it.

A Wise overview usually covers what the account gives you.

• Not a bank: Wise does not lend out customer money. Instead, it safeguards balances with partner financial institutions.
• Multi-currency account: You can hold and manage money in more than 40 currencies and convert between them.
• Local account details: Wise issues account details in major currencies such as USD, GBP and EUR, so people abroad can pay you as if you had a local account.

The way Wise moves and converts money is what separates it from a traditional bank transfer.

• Mid-market rate: Currency is converted at the mid-market exchange rate, the same rate shown on Google, with no hidden markup added.
• Upfront fees: Wise charges a small fee for conversions and transfers and shows it before you send.
• Local accounts instead of cross-border moves: Money does not physically cross borders for each transfer. For a transfer from India to the UK, your rupees go into a Wise account in India, and Wise pays pounds to the recipient from its account in the UK.
• Wise card: You can order a debit card for spending in more than 160 countries. If you do not hold the local currency, the card converts from your existing balance automatically.