Wise, formerly TransferWise International Money Transfer Review

Wise charges two fees - a Wise fee (for processing the transaction) and a Payment method fee (i.e. the cost of receiving your money, i.e. by a credit card or by a bank transfer).
 
Fee 1: Wise fee - this will vary based on the currency you are converting NZD to
What you pay depends on what currency you use. In our analysis of a NZ$1,000 transfer, we found Euros and British Pounds are the cheapest to transfer, and United Arab Emirates Dirham and South African Rand are the most expensive. 

As an example, the following fees would apply on a NZ$1,000 transfer:

Generally, the percentage fee charged drops as the size of the transaction increases, but to understand the different fees for different currencies, the table above gives the best overview. 

The Wise fee is deducted from the transaction value. For example, if you wish to transfer NZ$1,000 into PHP, based on the table above, NZ$990 will be available to send as NZ$10 is taken by Wise as its fee. 

Understanding how Wise charges its fee, a second fee will apply, as we outline next.

Fee 2: Payment method fee - unlike the Wise fee, the payment method fee does not vary based on the currency you are converting NZD to.

• Bank transfer - no fee. Whether you transfer $1 or $100,000, if you pay by bank transfer there is no payment method fee. 
• POLi - $0.30 (30 cents) minimum, which goes as low as 0.05% of the transaction value. For example, if you transfer NZ$1,000, the POLi fee is $0.80 (80 cents). 
• Credit card - 1.768% of the value of your transaction. For example, if you plan to send NZ$1,000, around $17.68 will be charged to your credit card, meaning your recipient gets less. 
• Debit card - 1.768% of the value of your transaction. For example, if you plan to send NZ$1,000, around $17.68 will be charged to your debit card, meaning your recipient gets less. 

What these two fees mean for you:
Based on our research, the lowest-fee transactions are always funded by a bank transfer. If you use a credit card, debit card or POLi, you will pay more and/or your recipient will receive less. 

Wise isn't just peer-to-peer transfers
Wise started as a peer-to-peer transfer service, meaning, for example, it matched your money transfer of NZ$500 to USD with someone else doing a transfer from USD wanting to send NZ$500. Now the company has large reserves of all the currencies they offer, and Wise is facilitating the buying and selling of currency. This means your transfer will always occur as the peer-to-peer model has been superseded. 

Regulation in England, New Zealand and around the world
Wise is heavily regulated in England, where the company is based. Furthermore, its operations are reviewed and monitored around the world by various government bodies. In New Zealand, it falls under the watch of the Department of Internal Affairs.​

Joining and using Wise is very easy, and we outline the complete process below.
​

1. Sign Up - this is very easy, and is done via the Wise website. 
2. Mobile and Email Verification - Wise sends a text with a security code and an email, which you need to verify by clicking the link. Once done, you can complete your first transfer.
3. Arrange a Transfer - you will be able to enter in how much you want to send or have sent, meaning you can send either, for example, NZ$1,000 or US$1,000, and Wise will tell you how much USD will be received or NZD required. You will also get a fee breakdown. 
4. Guarantee of Exchange Rate - Wise will also secure the exchange rate between 24 and 96 hours, depending on the currency, meaning you can lock in a transfer rate now and pay up to 4 days later. 
5. Enter the Recipient Details - this is where you enter the bank details of who you are sending money to. You will need to know the country, bank account details including bank branch and address, as well as the recipient's email address and/or phone number. 
6. Verify Your Identity - Wise will prompt you to upload images of your ID, i.e. passport, to verify your identity. The timeframe for your identity to be verified ranges from seconds to three days, although users report that in most cases it is seconds. 
7. Confirm the Purpose of the Transfer - you will need to specify why you are sending the money; there is a list of options, such as 'for the payment of goods or services' and 'sending money to friends and family'. Most people pick the most relevant option to them.
8. Make the Payment - you will be given four payment options in most cases. If you use a debit or credit card, follow the instructions and enter in your card details. If you use POLi, you will be prompted to log in to your bank via POLi and select the account from where the money is coming from. If you select bank transfer, you will be given a bank account and a unique reference where to send the money. As soon as your money is received and matched, the transfer will happen.
9. Track the Progress - you will first receive an email saying that the 'money has been received', and then a 'money has been sent' email when that happens. Your recipient will also receive similar emails advising them that money is on its way to them.
10. Confirm the Payment - once you receive an email saying the money has been sent, it's a good idea to check with the recipient that the money has arrived. 

New Zealand banks charge a fee for international money transfers. You may also need to have your recipient’s details approved by your bank, as part of their fraud-prevention measures. When you do finally make the transfer, it can take as long as five working days to arrive in the recipient’s bank account.

Let’s take an example below, with Kiwibank. We wanted to make three transactions:

• A transfer of 500 USD
• A transfer of 500 GBP
• A transfer of 500 EUR

We wanted to compare what this would cost h AUD, GBP and EUR you will receive, compared to what Wise offers.

​Our PayPal fees guide illustrates you will pay between 3% and 4.20%, making a PayPal transfer far more expensive than Wise. The only benefit of PayPal is that the recipient doesn’t need a bank account, although in the majority of standard money transfers this isn’t an issue.

In the examples below, based on the bank transfer comparison above, show the exchange rates offered by PayPal are poor value when compared to Wise. 

Comparing PayPal to Wise

• Sending 500 USD costs NZ$738.65 (Wise) vs NZ$760.93 (PayPal) - a 3% saving
• Sending 500 GBP costs NZ$977.82​ (Wise) vs NZ$1020.68 (PayPal) - a 4.2% saving
• Sending 500 EUR costs NZ$​833.76 (Wise) vs NZ$867.52 (PayPal) - a 4.2% saving

Send and receive money in seconds is what Wise promises, but how you pay depends on what how fast your money is transferred. Nonetheless, compared to the speed of your bank, Wise is lightening-fast. 

The fastest way to pay is via POLi or card
In the example below where we send NZ$500 to India, we show how paying by POLi, debit or credit card means the money will arrive 'in seconds'. If you pay by bank transfer, while this comes with no additional fees, it will take longer. If you transfer over a weekend, the entire Wise transaction could take up to three days. 

Nonetheless, compared to a bank (Kiwibank, for example, states international money transfers "usually arrive within two to three business days of sending"), how fast your transfer arrives depends on how quickly you transfer the money. Any payment form other than bank transfer will be instant, so your payment may arrive in seconds, depending on the destination country.

Wise lets you cancel a transaction, but if you have already paid via POLi or a debit or credit card, there is little you can do to reverse the payment. This means it is essential to input your recipient's details correctly. If you enter the wrong details, the transfer will either be rejected or go to an unintended recipient.

To avoid any issues, it's best to ask your recipient to confirm the bank details as they appear on Wise once you have set them up on your account. You can take a screenshot or copy and paste it. You can then transfer the money with confidence.

Only Wise transaction paid with manual bank transfers can be reversed if you accidentally pay the wrong person, but this has to be done before you make the bank transfer. 

Wise is governed by rules and mandates set by the New Zealand Department of Internal Affairs. This has limited the transaction values to ensure safety for consumers and reduce the risk of money laundering transactions. For this reason, $10,000 is the limit you can transfer at one time if using a card, but this is the most expensive option as our fees review describes anyway. 

While 50+ currencies are available for transfers, covering all four corners of the world, China is a no-go at the moment for Wise other than UnionPay. According to the approved Country Wise list, money transfers from New Zealand are prohibited. For approved countries, there are still limitations, specifically:

• You can only make CNY transfers to private recipients who have a UnionPay bank card.
• Wise can only pay out to UnionPay accounts opened using Chinese National ID cards. Accounts opened with a passbook, driver's licence or military document are not supported. 
• You cannot send CNY to a business recipient. You can send USD though, if you'd like to.

No new information about if and when New Zealand will be added to the approved country list is currently available.

Your account may be deactivated without warning - Wise advises that "account deactivation is a security measure that we have to take from time to time to ensure that we comply with our regulations and maintain the safety of our global customer base". If you do have this happen, there isn't much you can do other than contact support. If you have a transfer in-progress and your account is deactivated, this can be stressful. 

Money transfers can be delayed - it may say 5 hours, but if your bank has a glitch, you make a bank payment outside of business hours to settle the transfer, or you just have bad luck, you can face delays of a day or two. If you are transferring to an account overseas to settle a payment, it is best to plan in advance and organise the transfer well ahead of schedule. 

Call centre support is limited - Wise picks up the phone 9:00am - 5:00pm, Monday to Friday New Zealand time, so outside these hours you'll need to wait until they open.