Whether you’re moving to a new country or traveling to the other side of the world, there always comes a time when you wonder how to transfer your money and how to pay for things once you’re there. Between your bank assuring you they have the best deal, family advising you to bring cash, and friends who’ve vaguely mentioned a service called Wise, it’s hard to know where to turn. In this article, I’ll explain how to pay for things and transfer money using Wise while traveling abroad.
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Disclaimer: All advice provided in this article is for informational purposes only and should not be construed as financial advice.
What is Wise and How Does It Work?
Wise is a financial company based in the United Kingdom. It offers multi-currency accounts and greater transparency when it comes to international money transfers. Some traditional banks, on the other hand, can be a bit more opaque and hide fees that are difficult to understand. From your Wise account, you can receive, send, and pay in more than 40 currencies.
It’s the ideal tool for people moving abroad (I used this service back in 2014 when I moved from France to Canada) and for travelers (we also use it when we visit my family in France) to minimize transfer fees and make the most of your money.
Key Benefits of Using Wise for Travelers and Expats
I’ll keep this simple so you can really compare it with the other options you may have considered.
- You can manage multiple currencies under the same account. No need to switch between different banks.
- The exchange rate applied is the actual rate for that day. Not some complicated, opaque calculation.
- Lower fees than traditional banks and more transparency: you know exactly what you’ll pay.
- You can get a debit card to pay for your purchases. The card can be physical, but it also works with Apple Pay and Google Pay on your phone.
- You can open local accounts in these different currencies. This is handy if you want to receive a money transfer and need a local account, for example.
How do I open a Wise account?
It’s really easy to open a Wise account, it’s free, and the good news is that you can do everything from your computer or phone.
- Create your account on the Wise website.
- Enter your first name, last name, and email address.
- Choose whether you want to open a personal or business account.
- If you’re opening a business account, you’ll need your business registration number.
How does Wise work on a day-to-day basis?
Depending on your profile, using Wise may be a little different.
Money transfers:
Are you immigrating to a new country? You are heading to Canada on a Working Holiday Visa? Are you looking to transfer money from France to Canada (for example)? Then you’re the perfect candidate for Wise. You can easily transfer your savings from your French account to your Canadian account while keeping bank fees to a minimum.
The debit card:
If you’re used to traveling in Europe, you may have forgotten that it’s not always this easy to access your money and make payments while you’re there. You can get a card that lets you make payments in more than 150 countries—and keep the fees associated with converting your money into the local currency to a minimum.
Bank account information/local account number:
This allows you to quickly get a local account number, whether in Canada or elsewhere. One account per currency is available on the website.
Wise vs. Traditional Banks
Let’s talk about the real issues: what are the differences between Wise and traditional banks?
- The exchange rate: Wise uses the actual exchange rate, while banks use a marked-up rate. When you travel or move abroad, every dollar/every euro counts.
- Transparency on fees: You know exactly what you’re going to pay—no unpleasant surprises or hidden fees. I don’t know about you, but so many times when I check my account with my traditional bank, I feel like I have to decipher a puzzle to understand what’s happening with my money. You can view all the fee details on their website.
Is Wise Safe and Legitimate?
That’s a perfectly legitimate question. We always have a thousand questions before trusting someone with our money. When it comes to Wise, several key factors demonstrate its reliability.
- Unlike a traditional bank, Wise is not allowed to lend out or put your money at risk. Customer funds and company funds are kept separate.
- Your money is held at major partner banks and will be protected even if Wise were to go bankrupt.
- Wise has established local legal entities to manage your money based on your location. Not everything is managed in the United Kingdom, where the headquarters are located. For Europe, for example, the entity is based in Belgium. This ensures that you’re protected by local rules and laws.
My Honest Wise Review After 10 Years
I’ve been using Wise since 2014. Back then, it was still relatively new. You had to call a representative to confirm your exchange rate. Suffice it to say, I’ve watched Wise evolve over the years and become a major financial player that’s indispensable for immigrants, expats, and travelers.
I like having control over my money, and especially over the fees. I love how fast the transfers are and the independence it gives me. On top of that, the limits are much higher than at a traditional bank, which usually offers a maximum of €10,000 per day for transfers. And if you go over that limit, you’ll almost certainly have to go to a branch to complete the transaction. With Wise, the limits are much higher, up to $1.5 million per day. Well, you’d have to actually have that much, but let’s just say you have more flexibility.
FAQ
Can I open a Wise account for someone else?
No, you can only open an account in your own name, for yourself.
Can I have more than one Wise account?
No, you can only have one Wise account per person.
As you can probably tell from reading my article, I’m a big fan of Wise, I’ve been using it for over 10 years. We use it every time we travel outside of Canada. If you’re ready to start saving money, head over to the Wise website to open your account.
Happy saving, and have a great trip!
