Currency broker or TransferWise (Wise)
For anyone shopping around for a better alternative to their bank for currency transfer(s), the question on whether to use a broker like Misano Payments or a firm like TransferWise (Wise) is perhaps the hottest topic alongside security of funds.
It’s a fair question. In the thirteen years that Wise has been incorporated, it has changed the currency exchange landscape. Since its inception more companies have entered the market as “challenger” banks to the usual high-street suspects. These suspects include Monzo, Starting and Revolut. They, alongside Wise, are all firms which allow you to exchange currency at great rates, usually via their app on your mobile phone.
I regularly mention the merits of Wise to clients as they are good at what they do and also open up conversation on non-bank currency exchange. Clients of Misano Payments who have used Wise or similar in the past have done so principally because they offer a convenient service for exchanging currency holiday spending money or for paying local bills via card/app.
TransferWise openly publishes its currency exchange fees on their website; it’s currently 0.35%, which when you are exchanging smaller sums, represents fantastic value. The more you send though, the less favourable that margin becomes. Wise of course makes money from this margin because they have thousands of customers and the economies of scale that go with such a large customer base. Having the same fee on exchanging a larger sum, it then becomes less attractive.
TransferWise is a (fintech) company that revolutionised the international money transfer industry by introducing a peer-to-peer currency exchange model. Wise aims to provide a transparent, low-cost alternative to traditional banks and currency brokers like Misano Payments.
Pros of TransferWise (Wise):
Transparent Fees: Wise is known for its transparency in fees. It provides real-time exchange rates and clearly displays the fees associated with each transfer.
Low-Cost Transfers: Wise offers competitive exchange rates, often better than those provided by traditional banks, and its fee structure is typically straightforward.
Speed and Convenience: Transfers through Wise are often swift, and the online platform is user-friendly, making it convenient for individuals and small businesses.
Cons of TransferWise (Wise):
Limited Personalisation: While Wise is great for straightforward transfers, it may not offer the same level of personalized services as currency brokers for more complex currency needs.
Market Insights: Unlike currency brokers, Wise doesn't typically provide detailed market insights or advice on currency fluctuations.
Lack of personal service. For those who need guiding through the currency exchange process, Wise does not offer a personal service.
I hope the above gives a good insight into how brokers and “challenger” banks can work together, and if you need any assistance on how Misano Payments can help you - do call on 0203 488 6708.