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What Is Wise?

What Is Wise and Why Is Everyone Switching From Their Bank?

Wise offers mid-market exchange rates and transparent fees for international transfers. Here is why millions of people have ditched their bank for it.

You are sending money overseas. Maybe it is rent for a family member abroad, a freelance payment from a foreign client, or a transfer to your own account in another country. You log into your bank, punch in the details, and confirm.

What you probably do not notice is the 3 to 5% markup quietly baked into the exchange rate your bank is using. On a $2,000 transfer, that is $60 to $100 quietly skimmed before your money even arrives. Do that a few times a year and you have lost hundreds of dollars to a fee that was never shown to you upfront.

That is exactly the problem Wise was built to fix.

What Wise Actually Is

Wise (formerly TransferWise) launched in 2011 in the UK with one goal: give people the real exchange rate, the mid-market rate, the same one you see on Google, with a small transparent fee shown upfront before you confirm.

Today, Wise serves over 14.8 million customers and processes transfers to 140+ countries. Beyond simple transfers, it offers the Wise Account, a multi-currency account where you can hold balances in 40+ currencies, receive local bank details in USD, EUR, GBP, and more, and spend globally with a linked debit card accepted in 215 countries.

How Wise Transfers Money Internationally

🏦
Your Bank
🌐
Wise Local Network
🏦
Recipient Bank
✗ Traditional Bank (SWIFT)
Up to 3 intermediary banks, 2–5 days, hidden markup of 2–5%
✓ Wise Local Network
Funds move domestically on both ends, often under 24 hours, fee from 0.35%

How Wise Transfers Work (And Why They Are Cheaper)

Traditional banks route international transfers through the SWIFT network, a chain of 1 to 3 intermediary banks, each potentially taking a cut. It is slow, expensive, and opaque.

Wise built its own local payment network with bank accounts in dozens of countries. When you send $1,000 to someone in Germany, Wise does not actually move your dollars across borders. It takes your dollars locally and pays out euros from its local German account. The money never crosses a border, which is why it is faster and cheaper.

What It Costs

Wise charges a small variable fee, typically starting at around 0.35% to 0.57% depending on the currency route, with zero markup on the exchange rate. Compare that to banks, which often apply a 2 to 5% markup on top of flat wire fees.

Who It Is For

Wise is ideal for expats and immigrants sending money home regularly, freelancers and remote workers receiving international payments, travellers who want a card that does not charge foreign transaction fees, students abroad receiving support from family, and small business owners paying international suppliers.

How to Sign Up With a Referral Code

New users can claim a fee-free first transfer (up to £500) by using a referral code at sign-up. See our Wise referral code page for the current working code and a step-by-step guide on how to enter it.

More Referral Codes

🏠
HomeExchange
Swap homes instead of paying hotel prices
alexandre-7171dUse code at sign-up for a free trial
Get HomeExchange referral code
📈
Wealthsimple
Invest commission-free in Canada
DGN6-AUse code at sign-up for a bonus
Get Wealthsimple referral code

New users who sign up through a referral link receive their first transfer fee-free.

Get Your First Transfer Free

This article is for informational purposes only. Fees and exchange rates are subject to change. Visit Wise for current pricing.