Wise Review (TransferWise)
- There are no monthly costs.
- Transfers at rock-bottom prices
- Capacity to invoice clients
- Spend anywhere you choose, with no hidden costs.
- Integration with Xero
- Mastercard for Business
- Receive and store more than 55 currencies
We, freelancers, are always looking for more efficient, cost-effective, and convenient payment methods. TransferWise was one of the more well-known payment alternatives for freelancers, and since they changed their name, we wanted to check in and see if anything else had changed. So, to begin, here is our brief verdict:
You must include Wise in your freelance toolkit. If you're not comfortable leaving your hard-earned money on the table for the central banks to take, a simple Wise application is only a few clicks away. Their straightforward pricing structure will not leave you in the dark.
TransferWise was established ten years ago in 2021 by Estonians Kristo Käärmann and Taavet Hinrikus. And it is in 2021 that this London-based business will remove the transfer and rebrand as simply Wise.
TransferWise or Wise has shaken up the banking industry with cheap costs that are entirely disclosed to the individual transferring the money upfront. Ten million consumers have used Wise to send and receive money in ten years and avoid excessive costs charged by large banks.
Unsurprisingly, Wise's reputation has risen so fast – they excel at identifying trends in how individuals manage their money and developing a solution that simplifies an otherwise complicated situation.
There is no need to allow the enormous bank dinosaurs to trick us in this digital era. So, therefore, how is it that Wise can charge such cheap costs when other banks cannot?
Wise Review: How does it operate?
Have you ever heard of a hawala transaction? Hawala dated back to the eighth century and was a method of transferring money without physically moving it between hands. Rather than that, money was transmitted through a network of hawala brokers that worked alongside and outside the Silk Road to combat theft.
Wise operates similarly. The business maintains bank accounts in several countries, and when someone sends you money from another nation, the funds are sent to the Wise-owned account in that country, not to your bank account.
The funds are sent to you directly from the Wise account in your country. Therefore, there was no need for money to “cross borders,” It imposed no exorbitant fees.
How to sign up for Wise Freelance
Opening a Wise Freelancer account is simple and completely free.
To create a Wise freelancer account, visit their website and input your email address, password, and country. Additionally, it would be best to confirm using a picture ID, proof of residence, and a photograph of yourself holding the ID.
Compared to establishing an alternative currency account with a conventional bank, the procedure is speedy and requires no travel.
Wise Review: What makes it unique (for freelancers)?
Wise allows you to retain nearly all of the money you earn for doing labor-intensive tasks such as writing, scripting, and video editing. As a result, there is no need to subsidize banks. They already have sufficient funds.
If that's not enough, you may spend this money online or in-store using a debit card issued by the nation from where you're purchasing to avoid conversion costs.
Not only are foreign payments considerably more straightforward and affordable with Wise, and various currencies are simple to handle; a variety of helpful tools is also provided to assist with financial tracking.
All of this simplifies future company planning, makes budgeting much easier, and ultimately helps companies thrive.
Wise for Digital Nomads
With access to over 55 currencies and local bank accounts, as well as a debit card that is accepted globally with minimal costs, the Wise Freelancer account serves as a trustworthy financial option for travelers and people who live abroad, such as digital nomads.
Benefits and drawbacks
- There are no ongoing costs.
- Simple invoicing
- No-cost debit card
- Transparent money transfers
- Spend in any currency you want
- Receive funds with minimal costs
- ATM withdrawals over £200 are subject to a 2% charge.
- £16 one-time charge to begin receiving funds
- The Wise card is not accessible in a large number of countries.
- Account creation is completely free.
- A one-time charge of £16/€23/$31 is required to begin receiving money.
- There are no monthly costs.
- 0.40 percent yearly to maintain a balance of more than €70,000 in EUR
- No-cost debit card
- 0.33 percent -3.56 percent for currency conversions made with your card
- ATM withdrawals up to £200/30 days are free; afterward, a 2% fee applies.
While establishing a Wise business account is free, you must pay them a one-time charge to begin collecting money. There are no monthly or membership costs associated with the account, and you may get a business debit card to spend your money anywhere in the globe, in person or online.
If you are fortunate enough to own more than $75,000 in euro money, you will be charged a 0.40 percent yearly fee. However, Wise is not alone in this. Numerous other banks have implemented a charge for EUR accounts since interest rates in the Eurozone are harmful, and it costs them money to keep your EUR.
Visit Wise's website for a full breakdown of their costs.
Wise Review: Business card
Each Freelancer account includes a Wise Mastercard, which functions as a debit card. Making card payments in the account's currency is free; otherwise, a conversion charge is specified on the website.
This also applies to ATM withdrawals, which incur a 2% surcharge after the monthly maximum of $250/£200 is met.
You can lock and unfreeze your card if it is lost or stolen, get immediate alerts when you spend, monitor your expenditures in the Wise app, set spending limits, and restrict payment methods such as contactless and ATM withdrawals.
Payments and invoicing
It's simple to invoice customers and withdraw money from freelancing sites like Upwork and Freelancer.com using the Wise Freelancer account. This allows for the addition of funds in several currencies to the account without incurring translation costs.
If a currency conversion is required inside the account, Wise provides very competitive mid-market exchange rates.
When you send more than 100,000 GBP per month, you get a discount depending on your monthly payment volume (or equivalent in your currency).
If you have a few workers or need to pay subcontractors, for example, Wise simplifies the process of paying employees, contractors, and other associates. Regardless of the nation or currency, you and the receiver may benefit from the actual exchange rate and cheap transfer costs.
Additionally, they do not need a Wise account to be paid. However, you need their email address or bank account details.
You may use the batch payments tool to generate and transmit up to 1,000 payments in a single transfer by uploading a spreadsheet with the necessary information.
How is Wise regulated?
Wise is regulated in several countries, subject to government and/or national bank rules. For example, in the European Economic Area (EEA), Wise is regulated as an Authorised Payment Institution (API) by the National Bank of Belgium (NBB), with passporting privileges across the EEA.
Wise is registered with the Financial Crimes Enforcement Network (FinCEN) in the United States and the UK Financial Conduct Authority as an Electronic Money Institution (EMI).
Is my money secure when I use Wise?
Wise is not a bank and is not licensed to do business in any jurisdiction. It is a fintech business that is registered as an electronic money institution in several countries. That is perfectly OK. The primary distinction is that customers' deposits are not guaranteed by governments or government-sponsored schemes like the FDIC or FSCS.
Wise and other e-money organizations take precautions to protect your funds in the event of their death. Your funds are segregated in respected organizations such as Barclays and JP Morgan Chase.
These safeguards assist protect your money if Wise becomes bankrupt for any reason.
Wise has been operating for over a decade and has served over ten million consumers in 170 countries. Additionally, they have almost 115k ratings on Trustpilot, earning them a 4.6 rating. Each year, their clients allegedly save $1.5 billion.
Wise Review: In conclusion
Millions of people have left the 9 to 5 to pursue freelancing as their primary source of income. I am confident I have. The majority of us deal with customers from all over the globe and get payments in various currencies.
Numerous conventional payment methods for freelancers are inefficient and costly. Calculating the usual rates for these services may be very difficult at times.
Fortunately for freelancers, particularly country-hopping ‘digital nomads,' Wise has introduced a Freelancer business account, a cost-effective option for international multi-currency transfers.
It's completely free to create an account, and there is no monthly fee. As a result, Wise's costs are transparent and much less than those charged by big street banks for comparable services. Additionally, unlike other payment service providers, Wise converts currency using the actual mid-market rate.
I hope you enjoyed the Wise Review (TransferWise); let us know if you use Wise for your freelance work?