Description: Wise is a money transfer service that allows users to send money internationally with low fees. Founded in 2011, Wise has positioned itself as an efficient alternative to traditional banks and other money transfer services. Its main appeal lies in its ability to offer real and transparent exchange rates, meaning users can see exactly how much their recipients will receive in the local currency. Wise uses a network of local accounts in different countries to facilitate transfers, significantly reducing the costs associated with international transactions. Additionally, the platform is known for its user-friendly interface and mobile app, allowing users to manage their transfers easily and quickly. With a growing user base worldwide, Wise has revolutionized the way individuals and businesses make cross-border payments, making them more accessible and affordable.
History: Wise, originally known as TransferWise, was founded in 2011 by Taavet Hinrikus and Kristo Käärmann. The idea arose when Hinrikus, living in the UK, realized he was losing money when transferring his salary from euros to British pounds. Together with Käärmann, they decided to create a platform that would allow people to send money abroad more economically. Since its launch, Wise has grown exponentially, expanding its services to over 70 countries and offering transfers in more than 50 currencies. In 2021, the company rebranded to Wise, reflecting its focus on being more than just a money transfer service.
Uses: Wise is primarily used for making international money transfers quickly and economically. It is especially popular among expatriates, freelancers, and businesses that need to send or receive payments in different currencies. Additionally, the platform allows users to hold accounts in multiple currencies, making it easier to manage funds across different countries. It is also used for paying bills abroad and for making online purchases in foreign currencies, avoiding the high conversion fees typically charged by traditional banks.
Examples: A practical example of using Wise is an expatriate working in the UK who needs to send money to their family in Spain. Using Wise, they can transfer their salary in British pounds to euros at a much lower fee than a traditional bank would charge. Another case is a small business importing products from suppliers in the United States and using Wise to pay in dollars, saving on conversion costs and bank fees.
