Wise vs International Bank Transfer: Which One is Cheaper? 2025
Wondering what’s best, Wise (TransferWise) vs international bank transfer? Or perhaps you’re wondering if using Wise is worth it compared to sending money with your bank?
In this in-depth, side by side comparison, we’ll be looking at price, speed, safety, ease of use, and more. Plus, we’ll be comparing different transfer amounts and currencies. Let’s get started.
TransferWise vs international bank transfer: overview
Price: In our comparison of sending NZD to a friend in Australia, your recipient would get more in the end if you use Wise compared to the major banks we sampled.
Speed: Wise payments can be instant, and around 90% arrive within 24 hours*.
Safety: Wise is as safe to use for international transfers, with in built manual and automatic anti-fraud tools as a standard.
Transparency: Wise uses low, transparent fees which aren’t bundled or hidden in any way. There are no extra fees added to the exchange rates they use.
Ease of use: Set up a Wise account easily online, and complete the full verification process without even needing to leave the house.
Overall: Wise was built to make it easier to move money around the world – and so offers a fast, cheap and convenient service using its own payment network for international payments. You can use Wise to send money to over 160 countries all around the world, with mid-market exchange rates and low, transparent fees.
*The speed of transaction claims depends on individual circumstances and may not be available for all transactions
How much can you save with Wise?
One simple way to see how international transfer services measure up is to see how much your recipient would get when you send the same amount with different providers. Here are some example payments, imagingin sending NZD to someone in Australia, to be deposited to the recipient’s bank account directly.
| Amount & Currency | Recipient gets with Wise | Recipient gets with BNZ | Recipient gets with AND |
|---|---|---|---|
| 1,000 NZD to AUD | 899.52 AUD | 888.39 AUD | 887.65 AUD |
| 5,000 NZD to AUD | 4,502.22 AUD | 4,441.93 AUD | 4,438.25 AUD |
| 10,000 NZD to AUD | 9,005.59 AUD | 8,883.85 AUD | 8,883.85 AUD |
*Details correct at time of research – 25th February 2025
How can Wise be cheaper than international bank transfers?
Wise isn’t a bank – and Wise international transfers don’t necessarily work in the same way as bank transfers.
Wise processes international payments using its own payment network rather than the SWIFT network which is favoured by banks. That cuts out intermediaries – and their fees – and speeds up transfer times.
Where transfers are processed using the SWIFT network, the sender’s bank works with 1 – 3 other banks, known as intermediaries, to process a single payment. Each bank helps move the money along, until it reaches the destination account – a bit like taking a series of connecting flights. However, each bank involved can deduct a fee when they process the payment, which can mean extra costs you didn’t expect to pay. By cutting out the SWIFT network, Wise is often able to reduce the costs of processing an international payment, and pass these savings on to the customer.
Wise vs international bank transfers: the costs explained
Let’s start with a look at the Wise fee for sending and receiving international payments.
| Service | Wise fee |
|---|---|
| Open your account | Free |
| Monthly fees | Free |
| Send international payments | From 0.23% |
| Receive international payments | Free to receive payments in 8+ currencies to your Wise account using local and SWIFT account details
The following fees apply: 6.11 USD charge to receive a USD wire or SWIFT payment 2.16 GBP charge to receive a GBP SWIFT payment 2.39 EUR charge to receive a EUR SWIFT payment |
*Details correct at time of research – 25th February 2025
So what about the costs of using a bank instead? Different banks can have quite different fee structures when it comes to international payments. There may also be different services available depending on where you’re sending money to, and what the value of the payment is overall. To get a full picture of the costs of moving money internationally with your bank you’ll have to read the terms and conditions of your account – remember to look out for:
| Service | Bank fee |
|---|---|
| Open your account | Minimum opening deposit may apply |
| Monthly fees | Fees vary between banks and accounts, and may be waived by meeting certain conditions. |
| Send international payments | Fees vary between banks and accounts. Costs may differ based on where you’re sending money to, and how you arrange your payment.
Some banks waive transfer fees, but include a charge in the exchange rate used for currency conversion instead. In branch payments can cost around 25 NZD. |
| Receive international payments | Fees may vary based on the value of the payment and where it’s coming from.
Receiving a payment can cost around 10 NZD. |
Exchange rates: not what they seem
When you search for an exchange rate on Google, or use a currency converter tool, the rate you get is usually the mid-market exchange rate. This is used as a benchmark as it’s the rate banks and money transfer services get when they buy and sell currencies on wholesale markets.
However, it’s a rate that’s not always available to retail customers. To calculate the rate they offer customers, banks will usually add a markup or margin – often of about 3% – to the mid-market exchange rate. That doesn’t sound like a lot, but it can mount up fast. A 3% additional charge on a payment of 10,000 NZD for example would run to 300 NZD on this one fee alone.
Not all services add a markup to the mid-market exchange rate. Wise passes on the mid-market exchange rate to customers, and splits out all the costs of your transfer for full transparency.
SWIFT: the unexpected cost
As we already saw, the SWIFT network is often used by banks when sending overseas payments. This can mean additional fees apply which go to intermediary banks involved in processing the payment.
SWIFT costs can be changed to the sender, the recipient, or both. In many cases it’s impossible to know in advance exactly what the charge will be in the end. The fees are deducted as the payment is being processed which can mean your recipient ends up with less than you expect.
Specialist services like Wise bypass the SWIFT system with their own payment networks. This makes them faster and cheaper, with no surprise costs lurking along the way.
How does Wise work?
Wise built its own payment network to avoid SWIFT, cutting out unnecessary costs and making the entire process of moving money faster and more efficient.
When you make a Wise transfer you’ll send your money in New Zealand dollars, to the local Wise account in New Zealand. Wise has a network of accounts all over the world, so once your money clears in NZD, they’ll simply send on the equivalent amount in the currency you need from the Wise account in the destination country. This way no money actually needs to cross any borders, cutting costs and delivery times.
Wise vs banks: comparing the features
Wise is not a bank – but what’s the difference between Wise and a bank when you look at international money transfers and other features?
Let’s take a look at some of the biggest differences in features between banks and Wise.
| Wise | New Zealand banks |
|---|---|
| Wise is a specialist which was built to make international payments cheaper, faster and more transparent | International payments are an additional service, alongside products like everyday and savings accounts |
| Mid-market exchange rate | Exchange rates typically use a markup |
| Transparent fees | Fees may include transfer charges, third party costs and an exchange rate markup |
| Estimated delivery time provided instantly | You may not know how long your payment will take |
| Free to open multi-currency account options | Free to open multi-currency account options from some major banks |
| Spend internationally with linked debit card and no foreign transaction fee | International card payments often have a foreign transaction fee to pay |
Delivery time: is Wise faster than banks?
When you set up a payment with Wise you’ll be shown an estimated delivery time before you confirm the transfer. Many Wise payments are instant, and over 90% arrive on the same day they’re sent.
Banks tend not to publish an expected delivery time for overseas payments, as this can depend on factors like whether or not you meet the daily cut off time for payment processing. Generally bank international payments arrive within 1 to 5 working days. However, if you miss the day’s cutoff time, or it won’t even start to be processed until the next business day. Out of hours and weekend payments may also be delayed for the same reason.
Wise vs international money transfer: Is it safe?
Wise is a safe provider to use. When you set up a Wise account you complete a verification step which is required for account security. You’ll also use 2 factor authentication methods to make sure only you can log into your Wise account. If you ever have a problem you can get in touch with the Wise team easily by opening an in app chat.
Transparency: watch out for the hidden costs
Transparency in pricing is important when sending money overseas – but it’s not always easy to know exactly what you’re paying for an international bank transfer. Banks may have several different fees for sending money overseas, including a transfer fee, an exchange rate markup and third party fees, too. All in all, that can mean costs which are hard to spot, and hard to predict.
Wise uses transparent fees so you’ll always see the full costs of your payment before you confirm, split out so there are no surprises. You can also compare the costs of sending a payment with Wise against using other providers or banks, in the Wise app or on the Wise website – if an alternative is cheaper for your payment, the comparison tool will show you.
Wise vs international bank transfers: ease of use
Using Wise is straightforward. You’ll need to register an account the first time you use the service, but this can be done with just a phone and your ID document for verification. Let’s compare the simplicity of using Wise against bank transfers.
Wise: set up an account online or in the Wise app with a fully digital verification process. Send up to 2.2 million NZD by bank transfer, 5,000 NZD by POLi, or 10,000 NZD by card, to 160+ countries around the world. Many Wise transfers are instant, and around 90% arrive within 24 hours. You can always get customer support in the Wise app, by phone or email.
Banks: account application processes can vary based on the specific bank and account. Bank transfers can take up from 1 – 5 working days depending on the currencies involved. Transfer limits vary by account type and provider. Get customer support online, by phone and in branch.
Wise account set up and verification can be completed online or in the Wise app, often within 24 hours – no standing in a queue at a bank branch, and no unnecessary delays to worry about.
Coverage
With Wise you can hold 40+ currencies in your multi-currency account, and send payments to 160+ countries around the world. Bank international money transfers can often be sent to a broad range of countries and currencies – but the time taken to move more exotic currencies, and the fees involved, may be high.
TransferWise vs international bank transfers: pros and cons
If you’re not sure which type of payment is best for your needs, it’s worth weighing up the pros and cons of each to help you decide. Here’s a summary:
| Wise | Banks |
|---|---|
| ✅ Mid-market exchange rate with no markup
✅ Low, transparent fees ✅ Fast transfers – payments may even be instant
|
✅ Send same day or next day payments for some major currencies
✅ Arrange a payment in branch or by phone if you prefer ✅ Familiar and reliable service
|
| ❌ No branch service
❌ Fees vary by destination country and currency |
❌ Exchange rates usually have a markup
❌ Third party fees often apply |
Conclusion
Wise offers cheap and fast ways to send a payment overseas, using the mid-market exchange rate and low, transparent conversion charges And because Wise payments are arranged online or in the Wise app, they’re convenient too. Compare the service you can get from your bank against Wise the next time you need to send a payment overseas, to see which works best for your specific needs.
FAQ:
- Is Wise better than a bank?
Wise doesn’t offer all the same services a bank does. However, Wise does specialise in low cost international money transfers and multi-currency accounts which offer great solutions for managing your money across currencies.
- Is Wise a bank?
Wise is not a bank. The services available from Wise aren’t the same as a bank, but Wise is safe to use for international money transfers and multi-currency accounts.
- How does Wise work?
You can open a Wise account online or in the Wise app, to hold, send and receive international payments from around the world.
- Is Wise safe to transfer money?
Yes. Wise is a safe provider to use, with thorough verification processes and 2 factor authentication methods for additional security. If you ever have a problem you can get in touch with the Wise team easily by opening an in app chat.
- Is Wise cheaper than banks?
Wise uses the mid-market rate and transparent fees for international money transfers. Charges vary depending on where you send money to, and how you want to pay – compare the costs of your specific transfer against the charge your bank applies, to see which is cheaper for you.
