2 ms·

So is their entire value add that instead of the fees being hidden they’re now visible? Like is it actually cheaper and if so how were they beating bigger banks

So is their entire value add that instead of the fees being hidden they’re now visible? Like is it actually cheaper and if so how were they beating bigger banks? Or was it a VC play to “disrupt” forex by funneling money into a single tech company that could then undercut traditional businesses quickly, gain market share, and then switch to profitability?

croemer 3y ago
Yes it is actually cheaper. I started using them in 2012 after my first normal EUR-GBP bank transfer cost ~3% in fees (compared to market rate) and Transferwise was just 0.5%. Never disappointed. Their debit card which keeps multiple currencies with at most 0.5% for exchange is great too - preferentially uses currency you're paying with, only exchanging if it must. Overall a great product, don't have anything to complain and have been a happy user for more than 11 years. They've saved me at least a thousand bucks, probably more.
asfasfo 3y ago
None of the above. They are actually cheaper than most alternatives. I believe their "trick" is to maintain accounts in each country such that a cross country remittance doesn't actual involve money movement which saves on fees.
- axlee 3y ago
  Can't any random international bank propose the same service for cheaper? Or are they already making more money than Wise ever would by taking larger fees?
  - mchusma 3y ago
    I heard an interview from Wise where they just talked about all the random things they did to just drive down costs. They know people care mostly about speed and cost, so they focus there. It seems to not really be 1 thing, but a million small optimizations.
  - Scoundreller 3y ago
    They could, but, yes, it's too profitable to charge extra margin to unsophisticated customers. Maybe one day. Banks probably charge a lot less to those moving hundreds of millions around. But the people/businesses occasionally moving around $1000-$1m have been getting shafted for an eternity.

croemer 3y ago

Yes it is actually cheaper. I started using them in 2012 after my first normal EUR-GBP bank transfer cost ~3% in fees (compared to market rate) and Transferwise was just 0.5%. Never disappointed. Their debit card which keeps multiple currencies with at most 0.5% for exchange is great too - preferentially uses currency you're paying with, only exchanging if it must. Overall a great product, don't have anything to complain and have been a happy user for more than 11 years. They've saved me at least a thousand bucks, probably more.

asfasfo 3y ago

None of the above. They are actually cheaper than most alternatives. I believe their "trick" is to maintain accounts in each country such that a cross country remittance doesn't actual involve money movement which saves on fees.

axlee 3y ago
Can't any random international bank propose the same service for cheaper? Or are they already making more money than Wise ever would by taking larger fees?
- mchusma 3y ago
  I heard an interview from Wise where they just talked about all the random things they did to just drive down costs. They know people care mostly about speed and cost, so they focus there. It seems to not really be 1 thing, but a million small optimizations.
- Scoundreller 3y ago
  They could, but, yes, it's too profitable to charge extra margin to unsophisticated customers. Maybe one day. Banks probably charge a lot less to those moving hundreds of millions around. But the people/businesses occasionally moving around $1000-$1m have been getting shafted for an eternity.