Wise vs OFX: Which is better for International Transfers from New Zealand?

If you need to send money overseas - or you need ways to hold, send, spend and receive currencies yourself or for your business you might be wondering about the differences between Wise vs OFX¹.

This guide walks through a head to head comparison on features, fees, service availability and more.

What is OFX?

OFX New Zealand launched over 25 years ago, and since then has facilitated transfers in 50+ currencies to 170+ countries, worth more than 317 billion NZD². Over a million customers use OFX, for personal and business payments, business account services, and currency risk management solutions. OFX is known for excellent customer service and allows people to transact and transfer online, in app and by phone, 24/7.

Services available include:

• Personal and business transfers, which do not have a maximum payment limit
• Business and online seller accounts which can receive payments in 7 currencies
• Currency risk management solutions like forward contracts and limit orders

What is Wise (Formerly TransferWise)?

Wise launched in London in 2011 as TransferWise. Today, Wise has over 17 million customers globally, offering personal and business payments to160+ countries in over 40+ currencies, as well as the Wise account and card for personal and business users. Use your Wise card for easy spending in 150+ countries - plus, with a Wise account both personal and business customers get local bank details to get paid to Wise conveniently in multiple currencies.

Services available include:

• International payments for personal and business customers to 160+ countries
• Accounts to hold 40+ currencies which can receive third party payments in 9 currencies
• Wise cards for personal and business use in 150+ countries
• Mid-market currency exchange with low fees from 0.39%³

OFX vs Wise: Main Comparison

To decide whether OFX or Wise is right for you, you’ll want to compare the features, fees and convenience of each. Let’s start with a head to head comparison on features available, including Wise vs OFX money transfer - we’ll unpick each service type in more detail afterwards. \

OFX vs Wise: Sending international payments

Both Wise and OFX allow personal and business customers to send money overseas. OFX serves 170+ countries, while Wise allows transfers to 160+ countries. With both you can send money online or in app - but OFX also allows payment by phone. In fact, the first time you transfer with OFX you’ll have to talk to an OFX agent before your payment will be initiated⁴.

Wise and OFX exchange rates and fees are a little different. OFX has a flat fee for transfers under 10,000 NZD, with no fee for higher value payments. You’ll also pay another charge - an exchange rate markup. This is added to the rate used to convert your currency. We’ll look at this in more detail later - but the key difference here is that Wise uses the mid-market rate with no markup, and discloses all transfer fees upfront. Use the calculator below for a direct comparison:

OFX allows unlimited transfers globally⁵, while Wise has limits which are usually around the equivalent of 1 million GBP. Wise can move money faster than OFX - and may even be able to help you make an instant deposit to your recipient⁶. OFX can take 1 - 2 days for common currencies, and up to 5 for more unusual ones⁷.

OFX vs Wise: Personal account services

OFX does not offer personal accounts which you can use to receive, hold, exchange and spend money.

Wise has the Wise account which lets you hold 40+ currencies, and get a linked Wise debit card to spend and withdraw globally. You can open and manage your account online or in-app, and add money in NZD or any other of the supported currencies for top ups. You’ll get the mid-market rate for currency conversion, and low fees from 0.39% - plus no ongoing costs or minimum balance amounts. All accounts have some free ATM withdrawals monthly, too, before any Wise fee kicks in.

OFX vs Wise: Business account services

Both Wise and OFX have business account services. With Wise, business customers get all the perks that a personal account holder gets - which we looked at above. Business customers also get extras like batch payment solutions, accounting integrations, access to an API, multi-user access and expense cards for team members.

The OFX business account is mainly aimed at online sellers and people taking payments through marketplaces and PSPs⁸. You can receive payments in 7 currencies, send money globally, and get currency risk management support too. There are no ongoing fees to worry about - but bear in mind that these accounts don’t have debit or expense card options. You can only get your money by withdrawing to a bank or using it to send payments to others.

OFX vs Wise: Currency risk management services

Here, OFX is the clear winner. Wise does not offer currency risk management services, while OFX has ways to limit your exposure to currency fluctuations with products like target rate orders and forward contracts. These are fairly complex products, which can come with fees and inherent risks, so you need to talk to a member of the team about your requirements.

OFX vs Wise: fees and pricing

Next, let’s look at the fees related to international transfers with OFX and Wise. As we’ve mentioned, the two providers do work a bit differently on costs, so comparing both the fees and the rates available is important. Here’s an overview:

Ultimately, to see whether Wise or OFX is best for your specific payment, you’ll need to get quotes from each to check the amount your recipient will receive. You can do this instantly online with Wise, but with OFX you need to register first to get access to online calculators and quote tools. Generally, the high OFX fee for transfers under 10,000 NZD might mean that it’s a fairly expensive choice for lower value payments.

Summary: which is better for international transfers in NZ?

Both Wise and OFX are well established, trusted and reliable providers for international transfers. Which is best for you might come down to personal preference and the specific transactions you need to make.

OFX is known for great customer service and has a 24/7 phone line - making it a good choice if you prefer to talk through your options in person before transacting. It’s also the place to turn for currency risk management solutions for personal or business use.

Where Wise stands out is in using the mid-market exchange rate whenever you send, spend or exchange. This makes it far easier to see what you’re paying compared to using a rate markup - and can end up cheaper too. Wise lets you send personal and business payments which can be faster than OFX, and also offers a more flexible multi-currency account option. Both personal and business customers can hold 40+ currencies, receive payments in 9 currencies, and get linked debit cards for day to day use. That can mean Wise is the better bet for customers looking for flexibility and low costs.