Wise history

Founding History of TransferWise

TransferWise, legally known today as Wise, was founded in 2011 by Taavet Hinrikus and Kristo Käärmann. The main idea for the company came to its founders due to personal needs—the aim was to find a cheaper and more convenient way of transferring money between countries.

Being the first employee of Skype, Taavet Hinrikus had to regularly transfer money from Estonia to London, where he worked, and vice versa, having to pay high fees with very bad exchange rates. In the meantime, his future co-founder, Kristo Käärmann, worked in London and transferred money back home in Estonia. They started exchanging currencies for each other at the real exchange rate and thus saved themselves from paying fees.

They decided to start a service that would have lower commissions and better currency exchange rates for the money that was being transferred between countries. Having realized that a lot of people have such problems, they then created TransferWise.

TransferWise gained quite some traction not long after it started its operation, since it had shown transparency with lower fees, and its interface was friendly. It provides an online platform for transfers at the real mid-market exchange rate, and this has considerably lower fees compared to traditional banks.

Over the years, it expanded its service offerings to multi-currency accounts and other financial products. In 2021, TransferWise renamed itself as Wise, indicating the variety of services beyond simple money transfers.

Today, Wise is one of the pioneering fintech companies that provide affordability and ease regarding international money transfer and financial management services at a global level.

Wise Services

The services provided by Wise in managing currency and making international money transfers are hassle-free. The main services provided through this company include the following listed below:

1. Money Transfers: The core business of Wise is international money transfers. Wise provides low-fee, real exchange rate transfers. This can enable the customers to transfer money between different countries in a cost-effective way compared to banks.
2. Multi-Currency Account: By applying to Wise, one can open a multi-currency account to hold money in various kinds of currencies. This may be pretty handy for ones who travel too much, operate with clients abroad, or people living in another country. In this way, it is possible to receive, hold, and send cash in any currency.
3. Debit Card: The multi-currency account comes with an international debit card by Wise. It lets one pay in different countries, drawing funds from that account and taking cash out in local currency at a great rate.
4. Business Expense Management: Wise has business solutions like expense management, multi-currency accounts, and cards. It is convenient for companies operating with international partners or clients.
5. Direct Debit Services: Wise provides direct debit services in some territories. This allows users to pay bills or subscriptions automatically in other countries.
6. Integration with Banking Apps: Through the API of Wise, integration of its services allows the same set of various financial apps and platforms offering international money managing, among others. For such companies, innovation does not stand still; new technologies and services keep being developed that let people move money across borders even more easily worldwide.

Currencies Available on Wise

By the time of my last update, April 2023, Wise has wide availability with currencies supported for international transfers, multi-currency accounts, and other operations. The main currencies available on Wise include:

In fact, Wise supports many other currencies in addition to these. That number is constantly increasing, which continues to be part of the service from Wise that provides access to a wide range of currency options.

For any detailed list of currently supported currencies and their usage terms, such as limits and fees, or even to get any more information at all about them, it would be best to take a look at the official website of Wise or its support.

Company Development Over the Years

The development of Wise can be outlined by highlighting key stages of its growth and development as follows:

This is based on information available until April 2023. To get the latest information, I would suggest checking official news or press releases from the company.

Investment Stages and Fundraising by Wise

The company of Wise has gone through several rounds of funding, greatly increasing its valuation. The main stages are as follows:

It’s important to note that company valuations at different stages may vary depending on market conditions, the investment climate, and other factors. For more accurate and up-to-date information, it is recommended to refer to the latest company press releases or analytical reports.

Wise for Business

In this contemporary world with globalization, businesses find the need to make quick, efficient, and cost-effective international payments. Wise, previously known as TransferWise, has brought up a new beginning that changes traditional concepts of international financial operations.

Advantages of Wise for Business

• Transparency and Low Fees: Probably the most cherished factor about Wise is its transparency, especially when it comes to fees. Business clients can save a lot on international transfers since it offers, or rather promises, low and clearly defined fees.
• Real Exchange Rates: Wise does not charge unfavorable exchange rates, as many traditional banks do. Thus, with the real exchange rate that it offers, it is more advantageous in transactions for the business.
• Multi-Currency Accounts: One possibility it offers is the ability to keep accounts in many different currencies, basically perfect for businesses operating on several fronts internationally. Hence, funds can be managed and converted without needing other bank accounts.
• Convenience and Speed: It is true that in some businesses, the rate of transfer is of essence, which the system provides.
• Business System Integration: There are a number of business platforms that Wise can be integrated with for smooth financial management and accounting.

How Wise is Changing the Game

With Wise, the money is there in an instant and with minimal fees, making it far wiser than traditional bank transfers. Wise for business is more than an alternative to traditional bank transfers. It’s a comprehensive solution that offers the needed flexibility and savings for today’s international business. From startups to large corporations, companies of all sizes found in Wise a tool for expanding borders, making international payments in an efficient way.

In the era of digitization and the global economy, Wise operates amidst its own ways to make international financial operations with better access, more transparent, and convenient for businesses across the globe.

Wise Clients

The number of registered clients at Wise has been growing in trend over the years with the success and expansion of the company in the international market. Since April 2023, the growth pattern of the customer base can be roughly highlighted under:

• 2011-2012: Early users and innovators fascinated by cheaper and easier means of international transfers flocked to the company’s attention in the early days since its creation.
• 2013-2014: After having completed the initial funding rounds, further expansion into new territories saw user numbers start to climb into hundreds of thousands.
• 2015-2016: With its growing popularity and expansions in its offerings, including multi-currency accounts, it reached into several millions for its customer base.
• 2017-2018: Service improvement and geographical expansion continued to add to the growth, with the number of users already in several millions for the company.
• 2019-2020: Pre-pandemic, before COVID-19, the user count continued to surge ahead, building Wise as a dependable and economical avenue for international transfers.
• 2021-2023: After rebranding as Wise and successfully IPO-ed, the company continued to broaden its customer base for various international financial operation needs.

More precisely and timely, for information about the number of clients already registered with Wise, official reports from the firm or independent market research should be consulted. Note that such a figure may change in time and depends on various factors, including market conditions, competition, and product innovations.

Main Competitors of Wise

Wise falls into the category of a fintech and international money transfer business. This means that it faces competition from traditional banks but also from other fin-tech firms that offer similar services. Included are:

A list of the key competitors includes:

Competitors provide various benefits against Wise, such as better pricing, speed of transfer, ease of process through interface, and huge agent network. The competition is high in this industry, promoting innovation and service delivery for customers.

Criticisms of Wise

Wise was highly regarded as a unique company, transparent to change the course of international money transfer, and yet it receives its criticisms and challenges like any major company does:

1. Commissions and fees: Despite the company trying to brand itself as one offering less expensive services compared with classic banks, some of its clients are unhappy with the size of commissions. In particular, for small transfers, a fixed portion of the fee makes the transaction not very cost-effective.
2. Transfer Speed: With Wise, many transfers come through fast, but sometimes, with some currency pairs, not so; especially less popular or more underdeveloped countries’ banking systems will be slower compared to the competition.
3. Availability in Countries and Currencies: Though broad, there are significant restrictions in its availability in various parts of the world with different types of currencies available. It may not be very convenient for certain users.
4. Customer Support: Some customers complain about the quality of customer support, delays in response, or impossibility to resolve particular issues.
5. Security and Transparency: Although Wise is very transparent about its fees, several users reported anxiety regarding the safety of their transactions and personal data.
6. Policy and Terms of Service Changes: Changes in the policy and terms of service of Wise have sometimes been met with dissatisfaction from users, especially in those cases when such changes were perceived as a deterioration of conditions.

The cost of Wise services depends on many factors such as the sum transferred, currency pairs, payment means, and type of transaction. Key aspects of pricing in Wise are such as:

• Low and very transparent commissions: Several times, Wise charges only low commissions. More interestingly, it uses the real currency exchange rate – the interbank rate – minus any markups.
• Currency Pair Type: Here, the cost will depend on the type of currency selected. Transfers between more common currencies are usually cheaper.
• Payment Method: Again, the cost may depend on how the payment is made. For some of these, there might be additional fees:
• Amount to Transfer: In this case, the commission might change when the amount that is to be transferred changes. The fee for smaller amounts can be fixed, but for higher amounts, it can take the form of a percentage of the amount of money transferred.
• Urgency for Transfer: The urgent transfers will cost more because, on top of the standard transfer fee charged for urgent processing of your transfers, an extra charge is added.

More Additional Services: There can be some other additional services like multi-currency accounts or debit cards, which involve certain fees; however, the company does its best to keep them at a minimum.

During a transaction, an exact cost calculation about a particular transfer through Wise can be done by the company’s calculator present on its website and mobile application. Herein, one is allowed to put in the transfer details for the exact calculation of commission and the exchange rate of the transaction. It is done with complete transparency and helps customers make informed decisions.

Wise Physical and Virtual Cards

Physical Wise Card

• Multi-currency: The card allows holding of funds in multiple currencies for traveling or online purchases in different currencies.
• Usage: It can be used for regular purchases at stores and cash withdrawals through ATMs.
• Security: It includes standard security features such as a PIN code and the ability to lock the card through the app in case of loss or theft.
• Global Acceptance: The physical card is accepted wherever Mastercard cards are accepted.
• Cash Withdrawal: Enables cash withdrawals at ATMs worldwide, often with low or no withdrawal fees.

Virtual Wise Card

• Online Purchases and Subscriptions: The virtual card serves all kinds of purchases and subscription payments made via the internet. This card is created in an application and does not have any physical existence.
• Internet Security: Since this card is used only on the internet, it offers extra security to the owner as there will be minimal threat of losing a physical card.
• Instant Issuance: The virtual card is available instantly through the Wise app and can be used instantly without having to wait for any physical card delivery.

Both cards are connected to the Wise multicurrency balance, which means combining several currencies in one place and making international transactions available any moment with low fees and good exchange rates. Working with the Wise card can imply some limitations and fees. Everything depends on the user’s country and the type of operations.

Wise Interface

The Wise interface is user-friendly and transparent – some of the main keys to the company’s success in the fin-tech industry. Some of its features are therefore as follows:

Simplicity and Intuitive capability: Bringing ease to customers, it designs a very simple, clean, and intuitive process for money transfer and management of accounts.

Mobile Application/ Web Platform: With Wise, there is both a mobile app and a web platform; one could do a full suite of functions related to transfers, account management, and tracking of transactions through both computer and mobile.

Cost and Rate Transparency: In all of the screenshots, one of the key features of this interface is the very clear and straightforward manner in which transfer costs are laid out. A user is clearly able to see the commission and exchange rate before going into the transfer.

Multicurrency Support: The interface supports account management in a number of currencies and will allow users to switch between different currencies smoothly and check the current balance.

Security: Security is one of the key attributes; therefore, the interface will offer a security feature that includes two-factor authentication, automatic logout, and data encryption.

Customer Support: The interface will give easy access to customer support through chat, email, and phone.

Personalization: Users can create profiles of their settings and preferences, and that makes interacting with the platform easier and more comfortable.

Information Resources: Wise also provides educational and informative resources, including guides, FAQs, and tips on how to better use the service.

Security Measures in Wise

Security is the topmost concern for Wise as it deals with the transfer of money internationally and also some financial activities. Here is a rundown of some of the aspects and measures that Wise uses to keep things secure:

Regulatory Compliance: Since Wise has operations in multiple countries, every place has granted it a license or it is being regulated by the Financial Authorities following the Know Your Customer (KYC) and Anti-Money Laundering (AML) actions.

Data Encryption: Wise utilizes some of the best types of data encryption to maintain users’ personal and financial information private and not allow unauthorized access to customers’ data.

Two-Factor Authentication: It gives a good possibility for one’s account additional protection with 2FA verification as confirmation of one’s identity at login or during other significant operations.

Transaction monitoring: Wise continuously runs its transaction activities with the view to detecting suspicious or unknown ones for prompt reaction in case of any fraud actions.

Education of Customers: It educates customers on security issues through the provision of information and other resources that help them to become aware of fraudulent schemes. Thus, such individuals can avoid getting entangled into the web.

Infrastructure Security: Wise uses secure servers and infrastructure to avail high levels of security during data processing and storage.

Customer Support: If at all any question or issue about security arises, one can seek support from a customer service representative at Wise.

Constant Improvement of Security: With each passing day, new threats and challenges are evolving continuously in the digital world. That is why Wise continuously improves its security measures and technologies to keep customers safe from those threats.

Similar to any other financial system, the onus lies with the users of Wise to take precautions like using complex passwords, being suspicious of phishing emails, and checking their accounts periodically for unauthorized activity.

In the UK, Wise Payments Limited is authorised by the Financial Conduct Authority (FCA) as an Electronic Money Institution (EMI) under registration number 900507. TINV Limited is registered with the FCA for investment services under registration number 839689.

Wise Banking License

Wise does not possess a full banking license as of 2023. Quite naturally, since its beginning as an international money transfer service and expanding the services to multi-currency accounts, debit cards, etc., Wise is not working like a full-fledged bank.

Instead of a regular license from a bank, Wise is a licensed payment institution. That means the company is regulated by financial supervisory authorities in various countries of operation, according to local norms and standards of financial services, while it does not offer the full range of banking services, such as providing loans or accepting deposits.

For Wise to get a full banking license, the company would have to follow other strict regulatory requirements and possibly make significant changes in the way it runs its business. For now, there is no announcement that may indicate Wise is working toward getting a full banking license.

Please note that all details provided in this text are based on information taken from Wise’s website or app and may be subject to change over time. For the most accurate and up-to-date details, users should refer to the latest information available on Wise’s website or app.

How to Open an Account with Wise

Setting up an account with Wise is pretty easy. Here is a step-by-step guide in text and images:

Visit Website or Download Wise Mobile Application: Log onto the official website of Wise, www.wise.com, or download the Wise app through the Google Play Store or Apple App Store.

Begin the Registration Process: Click on the “Sign Up” or “Create Account” button.

Input Basic Information: Add your e-mail address, create a password, and, if needed, specify your mobile number. Some regions can also ask for their country of residence at this stage.

Confirm Your Account: Check email and/or SMS messages for a confirmation link or code, then take any further instructions provided to confirm your account.

Extra Data Filling: Accordingly, the service Wise would require additional information from you, such as full name, date of birth, place of residence, etc., on the grounds of observing anti-money laundering legislation and other demands stated by regulatory authorities.

Identity Verification: You will probably be asked to confirm your identity with a document such as a passport, driver’s license, or any other IDs. The process may be supported by uploading document and selfie photos.

Add Payment Methods: A credit/debit card or bank account will be added to serve as a source for carrying out transfers.

Finish Signing Up: Your account will be activated once all the information has been filled in and checked.

Utilize Your Account: You may now use your account for cross-border transfers, currency handling, or any other facility provided by Wise.

Remember that accurate steps and requirements might slightly differ depending on your place of residence and changes in Wise’s policy. Always follow the current guidelines on the Wise website or app.

Wise’s Future Plans

As of April 2023, it is hard to say what plans Wise may have for the future. However, potential ways of further development can be presumed considering the present trends in the world of Fintech and the previous experience of the company:

These are, of course, speculative directions, and Wise’s real future may indeed take varied routes. This will be dictated by a multitude of factors.

Overall Valuation of Wise

As of my knowledge cutoff in April 2023, the overall valuation of Wise stood at roughly $11 billion. It had attained this valuation when it floated on a Direct Public Offering on the London Stock Exchange back in 2021.

However, this valuation might change over time depending on the company’s financial performance, the general status of the financial markets, the competitive setting in the fintech and international money transfer verticals, and investor interest in the company and its stock.

Wise in 2023: Financial Performance

Wise, an Estonian-founded financial services company listed on the London Stock Exchange, saw a 51% year-on-year increase in turnover to €984 million in the financial year ending in March. The post-tax profit of the firm increased three-fold to €132.6 million.

Last fiscal year, some 10 million customers used the services of Wise—a jump of 34% from the year earlier. It moved some €122 billion internationally.

Its co-founder, Kristo Käärmann, commented that Wise facilitates but a fraction of the total number of potential cross-border transactions, which it could theoretically expand on in the years to come. Käärmann added that the firm Wise is currently developing its money transfer infrastructure with a view to reach economies of scale. Already, the company has teamed up with 70 banks worldwide.

As the company’s Chief Financial Officer Matt Briers has expressed, the active customer base tripled in four years and contributed to the growth in both turnover and profit.

If you plan to provide services similar to Wise, then a ready-made company licensing with an EMI license provided by legal firm Regulated United Europe – EMI License will help you to start your financial project as soon as possible.