What is Wise and how does it work?

Have you ever wondered why international transfers at traditional banks often take so long — and why, in the end, less money always arrives than you originally expected?

If so, you’re not alone!

Millions of people and businesses worldwide have had the same experience — and have therefore chosen a modern, transparent alternative:

➡️ Wise

Whether you’re sending money abroad, paying international invoices, or simply looking to save money while traveling, Wise makes global banking simple, transparent, and more affordable.

In this article, you’ll learn what Wise is and how it works, why transfers with Wise are faster, cheaper, and fairer than with banks, what benefits the multi-currency account and the Wise card offer, how security and regulation are ensured at Wise, and of course how you can open your own account in just a few minutes.

Discover Wise 🚀

What is Wise about?

Imagine being able to send money abroad — without hidden fees, at a guaranteed exchange rate, and in just a few seconds. Wise makes it possible.

Wise (formerly Transferwise) is not a traditional bank, but a modern electronic money institution — a London-based fintech company that offers an innovative online platform for international money transfers and currency exchange. Instead of complicated processes, unfavorable rates, and confusing fees, Wise provides a clear, digital solution:

You always know exactly where your money is, when it will arrive and how much the transfer costs.

Wise was founded in 2011 by two friends who were tired of losing money every time they transferred funds back and forth between London and Tallinn.

The Wise founders, Hinrikus and Käärmann, realized that traditional banks and money transfer services had hidden fees and unfavorable exchange rates. This made international life expensive and frustrating for the two Estonians — and for millions of other people around the world who have to deal with cross-border finances.

To solve this problem, the two friends developed a clever solution:

They agreed to exchange EUR and GBP directly between themselves, avoiding expensive bank fees. This led to the idea behind Wise:

A platform that allows people to send and receive money using the mid-market exchange rate, without paying high fees.

As a result, Wise is particularly suitable for people who carry out international transactions frequently, such as expats, freelancers, businesspeople, and travelers. Wise offers a convenient and cost-efficient way to manage money internationally, without the complexity and costs of traditional banking services.

International transfers

International transfers have long been at the heart of Wise. When it comes to sending money to countries outside Europe or transferring less common currencies, it could quickly become very expensive.

Before Wise existed, customers had few affordable alternatives — as both traditional banks and many transfer services charged high fees and hidden markups.

This is exactly where Wise stepped in. Wise’s goal is to make international money transfers fast, secure, affordable, and transparent. Before you make a transfer, the Wise transfer calculator shows you exactly…

➡️ …how much money you are sending

➡️ …what fee applies

➡️ …and how much the recipient will receive

💡 And all of this without hidden costs or exchange rate markups

One of Wise’s biggest advantages is its use of the mid-market exchange rate — the same rate you see on Google or financial websites. This gives you the real market price, without the usual markups or margins that banks often build in quietly.

Compared to traditional banks and other money transfer services, Wise’s fees are significantly lower. This means:

More of your money reaches the recipient. Especially if you send money abroad regularly, you’ll quickly notice how much you save with Wise — and how fast and reliably your transfers arrive.

💡 You transfer exactly:

Multi-currency account – One account for all currencies

Wise’s multi-currency account is the logical evolution of modern financial management. It allows you to hold, receive, and send over 40 currencies at the same time — all within a single account. This makes Wise suitable not only for private use, but also perfect for self-employed professionals, travelers, and businesses that regularly deal with multiple countries and currencies.

Instead of opening a separate bank account for each new currency, you manage everything centrally through the app or the online dashboard. You can convert amounts between your currencies with just a few clicks — always at the mid-market exchange rate and with transparent fees that you can see immediately.

A particularly useful feature is the local account details you receive for multiple regions.

💡 For example, you get:

➡️ A European IBAN for payments in EUR

➡️ A British sort code & account number for transfers in GBP

➡️ A US routing and account number for payments in USD

➡️ As well as details for Australia, New Zealand, Canada, and other countries

This allows you to receive money like a local — for example customer payments from the USA, freelancer fees from the UK, or rental payments in Australia — without paying international fees.

💡 Paying also becomes easier:

With the Wise debit card (Visa or Mastercard, depending on the region), you can access your multi-currency balance worldwide. When you pay abroad, Wise automatically detects which currency is required and either uses your existing balance or converts the amount at the real exchange rate.

💡 In short:

With the Wise multi-currency account, you get the flexibility of a global bank account — without its complexity or costs. Everything works digitally, quickly, and transparently — ideal for anyone who thinks and acts internationally.

Wise card – pay worldwide without hidden fees

The Wise card gives you the freedom to pay like a local worldwide — without the downsides of traditional credit cards.

The Wise multi-currency card is the perfect companion for anyone who’s on the move globally — whether traveling, living abroad, or working internationally. It works like a regular debit card, but offers key advantages:

➡️ Guaranteed exchange rates

➡️ Full cost control and no unpleasant surprises on your statement

With the Wise card, you can pay and withdraw cash in over 170 countries, across more than 40 currencies. If you hold a balance in the local currency in your multi-currency account, it’s deducted directly. If not, Wise automatically converts the required amount — of course at the mid-market exchange rate and with a transparent, low conversion fee.

Your benefits at a glance:

💡 Guaranteed exchange rates: No hidden markups like those added by banks or credit card providers.

💡 Worldwide acceptance: Use your card wherever Visa or Mastercard is accepted.

💡 Free account management: No monthly account fees or hidden costs.

💡 Cash withdrawals worldwide: Up to 2 withdrawals/ 200€ per month free of charge – details here: WISE DEBIT CARD PRICING

💡 Full control in the app: See in real time where, when, and in which currency you paid.

💡 In addition, you can manage the Wise card directly in the app:

➡️ Freeze or unfreeze the card if it’s lost

➡️ Change your PIN

➡️ Adjust limits

➡️ Create a digital card for online purchases

To sum it up, whether at a café in Paris, shopping online in the USA, or withdrawing cash in Tokyo — with the Wise multi-currency card, you save on fees with every transaction and don’t have to worry about unfavorable exchange rates.

Security and regulation

At Wise, your security is central. Anyone dealing with international transfers, foreign currency accounts, or cards abroad should ask:

Is my money safe? And how exactly is Wise regulated?

💡 Regulatory foundation:

Wise is not a traditional bank with deposit protection, but an electronic money institution. In the UK, the subsidiary Wise Payments Ltd is authorized by the Financial Conduct Authority (FCA).¹

Worldwide, Wise holds over 65 licenses — and is supervised by national financial authorities in the respective countries.²

In the USA, for example, Wise US Inc. is registered with the Financial Crimes Enforcement Network (FinCEN).³

How is your money protected

Your funds are held separately from the company’s operating funds (safeguarding). This means Wise is not allowed to use your deposits for its own business activities.

The service also offers technical security measures such as two-factor authentication (2FA), biometrics, encryption, and special card protection features (e.g. real-time notifications, card freezing).

Important note on deposit protection

Since Wise is not a traditional bank, your balances are not covered by the UK deposit protection scheme (FSCS) or similar schemes.

❗ Instead, Wise uses a safeguarding model that keeps customer funds separate, helping ensure they remain available in the unlikely event of insolvency

Save with Wise 💰

Wise Business – The solution for freelancers and businesses

If you operate as a freelancer, small business, or internationally active company, Wise’s business account offers a modern, flexible, and transparent alternative to a traditional business account. With Wise Business, you manage payments, currencies, and costs across borders more easily and affordably.

What does Wise Business offer?

➡️ Hold balances in over 40 currencies and send money to over 140 countries.

➡️ Receive local account details (e.g. EUR IBAN, GBP sort code, USD routing) — your international clients pay you as if you were local.

➡️ Transparent exchange rates & fees: Payments use the mid-market exchange rate.

➡️ Team and expense management: Cards for employees, spending limits, multi-user access, and user permissions — ideal for running your business.

➡️ Integration & automation: Connections to accounting software (e.g. QuickBooks, Xero), batch payments, and APIs for more efficient financial management.

Special features

💡 Wise Business is not a full traditional bank account:

➡️ There are no loans, no cash deposits, and no physical branches.

Why can Wise Business reduce your costs?

If you regularly send or receive international payments — whether foreign-currency invoices, salaries for international employees, or income via platforms like Amazon — Wise Business offers clear advantages:

➡️ Your money is not routed through expensive intermediary banks or burdened with high exchange rate markups

➡️ You see fees, rates, and the final amount in advance — enabling better planning

➡️ Accounting becomes simpler and cleaner thanks to cards, local account details, and software integrations

Who is Wise Business suitable for?

➡️ Freelancers with international clients or foreign-currency income

➡️ Small and medium-sized businesses operating across borders or with international suppliers

➡️ Start-ups and e-commerce companies selling globally or receiving payments from multiple currency regions

➡️ Businesses looking to reduce costs and value transparency, digital processes, and international flexibility

How to register with Wise

Registering with Wise is simple and straightforward. Here's how it works:

Step-by-step to your Wise account

💡 Open our website or app:

Whether on your laptop or mobile phone - start via Wise.com or directly in the Wise App.

💡 Choose account type:

Private or business - decide directly or later. Many use both, neatly separated.

💡 Register:

With email and password or via Google, Apple or Facebook. Entirely as you prefer.

💡 Verify:

Upload a valid identification document. For business accounts, additional company information is required.

💡 Confirm address:

Via electricity bill, tax assessment or bank statement - the main thing is: clearly legible and current.

💡 (Optional) Order Wise card:

Directly in the Wise App - physical or digitall. Perfect for travel, online shopping or spontaneous foreign currency expenses.

💡 Our tip:

Immediately set up a few currencies, test the Wise App, and receive your first payments. An account that thinks globally also opens up new possibilities.

A modern alternative to traditional banks

Wise is a forward-looking alternative to traditional banks, built for international payments where speed, clarity, and fair costs matter most. Instead of hidden fees, slow transfers, and exchange rate markups, Wise offers:

💡 Clear fee structure and a guaranteed exchange rate: You see all costs before every transaction — and receive the mid-market exchange rate.

💡 Fast international transfers: Many transfers are completed within hours rather than days or even over a week, as is often the case with traditional banks.

💡 Flexibility for global activity: Whether you hold, receive, or spend money in different currencies — Wise makes it simple, ideal for travelers, expats, freelancers, or businesses.

💡 Modern access instead of branch-bank barriers: Everything happens digitally, via app or website.

If you regularly make international payments, use multiple currencies, or simply want to significantly reduce your foreign transaction costs, Wise is a highly attractive alternative — modern, efficient, and fair.

Start now with your personal Wise multi-currency account 💡

FAQ

Is Wise a real bank?

No. Wise is not a traditional bank, but a regulated electronic money institution.

How safe is my money with Wise?

Your funds are held separately from operational assets and Wise is supervised by regulatory authorities. However, there is no traditional deposit insurance like with banks.

How long does a transfer with Wise take?

💡 Transfer times vary depending on currency, destination country, and funding method:

➡️ Many transfers are completed within seconds to a maximum of 2 business days, though some can take up to 5 business days.

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Sources used (as of 23.10.2025):

1. Wise, Safety
2. Wise, Safety and Security
3. Wise Security in the USA