Wise (formerly TransferWise): How It Works

Wise is a UK-based money transfer service and financial platform, specialising in low-cost international transfers. As of September 2026, Wise Group PLC has a market capitalisation of around £9.7–9.8 billion on the London Stock Exchange.

Wise was founded in 2011, originally as a dedicated international money transfer service under the name TransferWise. It has since expanded into a broader financial platform, adding a multi-currency account, a debit card, and business accounts — reflected in its 2021 rebrand to Wise. According to Wise's own reporting for its 2026 financial year, the platform supported close to 19 million customers and businesses, processing over $243 billion in cross-border transactions and saving customers a reported $3.3 billion compared to traditional transfer costs.

What Wise Offers

Wise's core service is low-cost international money transfers between bank accounts. The exchange rate used is the mid-market rate (the same rate shown on services like Google) rather than a marked-up rate, which is how many banks and other providers build in additional cost. Wise states the exchange rate offered is guaranteed for either 24 or 48 hours, depending on the currency, provided funds are received within that window.

Alongside transfers, Wise offers a multi-currency account (allowing money to be held and converted across 40+ currencies, with the ability to send to 150+ countries) and an associated debit card. Wise is an e-money institution rather than a bank — in the UK, Wise Payments Limited is authorised as an Electronic Money Institution by the Financial Conduct Authority (registration number 900507). Wise also offers investment products (Interest and Stocks accounts) in some markets, where capital is at risk.

Fees

As of September 2026, Wise's own pricing page states sending money costs from 0.24%, with the exact fee varying by currency and amount — Wise displays the specific fee before a transfer is confirmed.

For the Wise debit card, there's a one-off £7 card fee to get a physical card, with no ongoing subscription fee. Card top-ups and purchases are generally free; withdrawing cash from an ATM is free up to £250 per month per account, with a 2.69% fee applying to the portion of any withdrawal above that monthly threshold. Some ATM operators may also charge their own separate fee.

Given how frequently fee structures change across providers, it's worth checking Wise's current pricing page directly for the exact fee applicable to a specific transfer, rather than relying on a fixed example.

How Wise Transfers Work

Wise doesn't move money across borders in every transaction. Instead, it generally holds funds in local currency accounts in many countries, and matches incoming and outgoing transfers in the same currency where possible, paying out from a local account in the destination country rather than physically transferring funds internationally each time. Where this isn't possible, Wise may still need to move funds between its own accounts to fulfil a transfer.

For example, sending £1,000 to the Philippines in Philippine Pesos involves paying £1,000 into Wise's UK account; Wise then instructs a local payout in the Philippines from its own local funds. This structure is generally why Wise transfers can be faster than a traditional international bank transfer; there's no cross-border transfer required for that specific transaction.

Signing Up and Making a Transfer

Registering with Wise requires identity verification, typically involving uploading an ID document. Once registered, making a transfer involves selecting the currency and amount to send, reviewing the exchange rate and any applicable fee, entering the recipient's bank details, and paying Wise from a linked bank account or card. Payments can be tracked within the Wise platform, with notifications at each stage.

Regulation

Wise operates under different regulatory frameworks depending on the country, reflecting local financial regulation requirements. In the UK, Wise Payments Limited is authorised by the FCA as an Electronic Money Institution. In other markets, Wise holds separate licences with the relevant local regulator; for example, the Australian Securities and Investments Commission (ASIC) in Australia, the Customs and Excise Department in Hong Kong (as a licensed Money Service Operator), and FinCEN registration in the US.

Considerations for Larger Transfers

For very large transfers in certain currencies, Wise's transfer model can be slower or more costly than for major currency pairs, since matching or sourcing the destination currency locally can be more limited. Comparing costs directly with alternative providers is worth doing for large transfers in less commonly traded currencies.

How Does Wise Compare to Other Options?

Wise vs. Revolut

Revolut offers a broader range of everyday banking features alongside international transfers, including multi-currency accounts supporting 36+ currencies and the ability to receive international transfers by bank transfer, card, or mobile wallet. Revolut's paid tiers include additional travel and lifestyle perks not offered by Wise; its exchange rate terms, including any weekend or fair-usage-based charges, vary by plan and are worth checking directly. Wise's core offering is more narrowly focused on transparent, low-cost transfers and currency holding, without the broader banking feature set or tiered subscription plans Revolut offers.

Wise vs. Monese

Monese is an app-based account provider offering banking features including direct debits and money transfers, alongside international transfer capability. Fee structures and features vary by account type and can change; checking current terms directly with each provider is worthwhile when comparing the two for a specific use case.

This article is for general information only and does not constitute financial advice. Details are correct as of 04 September 2026 and are subject to change — always check current terms directly with the provider before proceeding.