How Loveholic cut cross-border costs by 30% to scale its global luxury brand

As an online business, Loveholic helps clients find rare luxury bags that may no longer be available in retail stores and delivers them in pristine condition, authenticated by industry experts, with an authenticity guarantee for additional assurance.

Loveholic sources and purchases luxury items from international suppliers and receives requests and payments from clients globally. But, coordinating everything digitally while navigating the many complexities of traditional banking methods has made it challenging for Loveholic to maximise profits.

In this case study, we’ll explore how Wise Business helped Loveholic:

• Reduce international money transfer fees by around 30%, saving tens of thousands of dollars each year
• Grown the business by enabling them to offer better prices for customers
• Eliminate hours wasted on benchmarking exchange rates, chasing banks, and waiting for payments to clear

Loveholic at a glance

The luxury resale industry has evolved to serve consumers who view handbags as investment assets, yet finding reliable sources remains a challenge. Loveholic was born from this specific struggle; founder Elaine Fung, an avid collector, frequently encountered unreliable sellers and authenticity doubts while hunting for pre-loved designer items. These experiences highlighted a significant gap in the market for a transparent, customer-centric platform.

Launched in 2020, Loveholic fills this void with a business model centered on authenticity, integrity, and expert curation. Understanding that luxury acquisitions are deeply personal and significant investments, the team goes beyond traditional retail service. Instead, they offer a bespoke sourcing experience, using their investment insight to find items tailored specifically to each client’s taste and standards.

The Loveholic team consists of dedicated professionals who oversee every aspect of the operation, from sourcing and authentication to logistics and marketing. Every product goes through rigorous authentication by industry-certified experts.

• Industry: Luxury goods resale
• Company size: 10 staff members
• Headquarters: Singapore
• Operational markets: USA, Australia, Europe, and Canada

How hidden costs in legacy business banking slowed global growth

As Loveholic expanded its reach from Singapore to clients around the world, it quickly realized that luxury doesn’t always equate to a seamless deal. Despite practicing sophistication and precision in sourcing high-end handbags, using traditional cross-border banking systems has only caused inefficient results and friction.

	As Elaine recalls, “One of the biggest hidden problems was how much we were losing to bank fees and exchange rate spreads. Initially, it didn’t seem like much per transaction, but over time, we realised it was silently eating into our margins. The more we grew, the more painful that 'invisible' cost became.”

And completing transactions involving different currencies brought more pushback than actual growth as Loveholic receives payments in USD, CAD, AUD, EUR, and GBP.

As banking regulations vary from country to country, setting up international bank accounts only to receive payments in local currency was time-consuming, complex, and sometimes, not even feasible.

The breaking point: How slow payments almost cost Loveholic

The lack of transparency and slow speeds in old payment systems cause major headaches for luxury brands. These flaws fell apart during a recent major deal involving a European client. Despite initiating the payment on time, processing took more than a week.

For Elaine, the lesson was clear, “With such high-value items, even a day’s delay can cost the entire sale. That’s why we needed a faster, more reliable system.”

Freedom from delayed payments, led by Wise Business

When both ends of a business are experiencing the very same problems, it’s not at all surprising that they themselves try to find a solution.

Discovering Wise Business was a natural progression that emerged from real-world experiences and recommendations within the company’s trusted business community. Naturally, Wise has become an integral part of how Loveholic is running its global luxury resale operations.

1. Reduced transfer fees with transparent and competitive exchange rates

Switching to Wise Business allowed Loveholic to send and receive international payments like a local business. With Wise Business, they could hold, and convert in 40+ currencies, so moving money between currencies or sending payments to international suppliers become faster and more affordable.

“We pay 30% less in fees compared to using traditional bank transfers. For a small business working with high-value transactions, this translates to tens of thousands of dollars a year, which can then go back into growing the business or offering better prices to our clients.”

2. Real-time payment tracking and instant notifications

In the past, Loveholic’s team spent countless hours each month on the following payment tasks:

• Tracking fluctuating exchange rates,
• Comparing bank transfer fees, and
• Constantly following up to confirm if payments had been received and cleared.

Using Wise Business completely changed the way Loveholic handled international payments. Wise Business notifies its account users about card transactions, ongoing transfers, and changes in account balances. Effortless tracking of payments has allowed staff to redirect their time and energy towards curating more personalised luxury experiences for their clients.

3. User-friendly, modern, and easy-to-navigate platform interface

For Elaine, Wise Business provides the speed and precision critical to delivering a white-glove experience and securing the trust of her global luxury clients.

“Everything is handled in one clean interface with minimal fees and fast turnaround. Sometimes, the payment even arrives instantly. It makes our international transactions more seamless.”

The outcome

Like many entrepreneurs, Elaine saw traditional methods as a seemingly safe and reliable choice at a time when Loveholic was still finding its footing. However, as the business expanded and transactions became more global, the limitations of conventional payment systems started to show. High fees, slow transfers, and rigid systems couldn’t keep up with the pace of their growth.

Recognising the need for a faster, smoother, and more affordable solution, the team transitioned all their financial operations to Wise Business, a strategic decision both their suppliers and clients championed.

Managing supplier payments, handling business expenses, and processing customer payments across borders were simplified, especially in an industry where quality and trust are the words to live by.

In Elaine’s words,“Wise Business makes international business transactions feel local; it’s fast and cost-effective.”

Wise Business: Simplify cross-border transactions

Wise Business serves as an alternative to traditional business account as you can hold, send, receive and exchange 40+ currencies all in one place. You’ll always get the mid-market rate with low, transparent fees. Even better, you can connect Wise Business cards to your account to control team spending in real time and reduce admin.

Here's what you get with a Wise Business account:

• Hold and manage 40+ currencies for all your international transactions.
• Pay foreign currency bills and ad-hoc business travel expenses using the Wise Business card without hefty foreign transaction fees.
• Get your first Wise Business card for free when you open a Wise Business account.
• Always get the mid-market rate with transparent conversion fees.
• Seamless integrations with popular accounting software.
• Earn a variable return** on SGD, GBP, EUR, and USD through Wise Interest

➡️Get started with Wise Business today

** Growth is not guaranteed. Capital at risk.