How does Wise (formerly TransferWise) work?
Last updated: February 16, 2026
Wise is a money transfer platform designed to make cross-border payments simpler, clearer, and often cheaper than traditional bank wires.
Try Wise with this referral link and preview your exact fee before paying.
Disclosure: This post includes my Wise referral link. If you use it, I may receive a referral reward at no extra cost to you.
The simple model
At a high level, Wise uses local payout and collection infrastructure in many countries, instead of relying only on expensive end-to-end international wire paths for each transfer.
Practical result for users:
- You see fees upfront
- You can review the rate before confirming
- You can track status in the app
What happens when you send money
- You choose amount, source currency, and destination currency.
- Wise shows estimated fee, exchange rate, and delivery time.
- You enter recipient details and pay.
- Wise processes conversion and payout through supported rails.
- Recipient gets funds in the destination account/method.
Why costs can be lower
Compared with many legacy methods, Wise emphasizes:
- Transparent fee display before confirmation
- Route-specific pricing instead of one-size-fits-all charges
- Less dependency on opaque intermediary fee stacks
That said, the cheapest method still depends on corridor, amount, and payment type.
What affects speed
Transfer speed usually depends on:
- Payment method (bank transfer/card/etc.)
- Currency pair and destination country
- Banking cut-off times and weekends
- Compliance and verification checks
Is Wise good for every transfer?
Not always. You should compare when:
- You are sending very high amounts
- You need urgent same-minute payout on a specific route
- You are dealing with uncommon currencies or payout types
Related guides
Final takeaway
Wise is best when you value fee transparency, straightforward setup, and transfer tracking.
You can compare your route now with my referral link before deciding.