Wise, originally TransferWise, was founded with the vision of making international money transfers cheap, fair, and simple. Today, Wise’s multi-currency account helps millions of people and businesses manage their money globally. With the mission of creating “money without borders,” Wise aims to make financial transactions faster, more convenient, and eventually free.

As businesses increasingly operate on a global scale, the need for efficient, cost-effective international banking solutions has never been greater. We evaluate the advantages and disadvantages of Wise business bank accounts to help you decide if they’re the right provider to help you manage your business banking needs.

Wise Business Account Features

The best business bank accounts offer essential features like mobile access, competitive interest rates and service fees, branch and ATM access, generous transaction limits and integration with financial software. When choosing any bank account, ensure the bank aligns with your business needs to avoid unnecessary fees and complications.

Wise Business accounts check many of these boxes. Here’s a closer look at the account features they offer:

  • Multi-currency accounts: With a Wise account, you can set up local account details in eight different currencies. This allows you to receive payments from international customers just as quickly as local ones. The feature enables businesses to manage multiple currencies in one account, simplifying financial management and enhancing operational efficiency.
  • International money transfers: The transparent fee structure of Wise accounts ensures you know exactly what you’re paying for, and Wise’s competitive exchange rates help you save on each transaction. Transaction speeds can vary depending on the currency, country of origin, holidays, payment method and security checks.
  • Debit card options: Wise offers debit card options that allow you to spend directly from your multi-currency account. This feature is perfect for businesses with international expenses, as it eliminates the need for costly currency conversions. With the Wise debit card, you can spend in any currency, providing flexibility and control over your business finances.
  • Online and mobile banking capabilities: Like many online money services businesses, Wise has a user-friendly app and website to make financial management easy and stress-free, whether sending money, receiving payments, or converting currencies. They also use features like 2-factor authentication to ensure your account is secure.
  • Integration with accounting software: Another advantage of Wise account features is its seamless connection with Xero, QuickBooks, FreeAgent and more. This integration keeps your financial records up-to-date and accurate, allowing you to spend less time on bookkeeping.

Fees and Pricing

Understanding your bank’s fee structure is crucial to ensuring you have the best account for your needs. Wise Business offers a streamlined fee structure with exceptional conversion rates for their business accounts compared to traditional banks. Here’s a closer look:

  • Account opening and maintenance fees: For a one-time fee of just $31, you can open a Wise Business account. The best part? There are no ongoing monthly maintenance fees. 
  • Currency conversion fees: One of Wise’s standout features is their transparent currency conversion. They use the mid-market exchange rate, which is the fairest rate you can get. The fees for converting currencies are low and straightforward, starting from 0.43%. 
  • International transfer fees: International transfers come with a small fixed fee (around $4.20 to $4.40 for a wire transfer from the US) and a variable fee starting from 0.43%. This model often results in lower overall costs compared to traditional banks, which typically add a markup to the exchange rate and charge higher fixed fees.
  • ATM withdrawal fees: With the Wise Business debit card, you can make ATM withdrawals with minimal fees. Your first two withdrawals up to $100 each month are free. Beyond this, there’s a fee of $1.50 plus 2% per withdrawal. 

Traditional banks often come with hidden fees, including monthly maintenance charges, higher currency conversion rates and international transfer fees. For instance, many banks charge upwards of $10 to $30 for international transfers and add a 1-3% markup on the exchange rate. Additionally, monthly maintenance fees can range from $10 to $30, and ATM fees can be significantly higher.

Accessibility and User Experience

Easy access and a seamless user experience are as important as other business bank account costs and features. Here’s what you can expect when you open an account with Wise.

Opening A Wise Business Account

Opening a business account with Wise can be completed online with just a few steps:

  • Sign up on the Wise website by providing basic business details, including the business name, legal type, registration number and address.
  • Submit verification documents, which typically include a colored scan of an ID document, information on ultimate beneficial owners, shareholders and directors and business details. 
  • Once you submit your documents, Wise will review and approve the account, usually within a few business days. 

Mobile App Functionality

The Wise mobile app allows users to hold, convert, send and receive money in over 40 currencies directly from the app. Real-time tracking features enable you to monitor pending transactions, track international payments and convert money at the mid-market rate.

The app also includes expense management capabilities, allowing you to manage physical and virtual debit cards, control spending limits and set payment methods. It even integrates with accounting software and supports Google Pay and Apple Pay for convenient payments. 

Security features such as the ability to instantly freeze your card, create unlimited virtual cards and monitor transactions in real-time enhance the safety of your business finances.

Customer Support Options

Wise offers several customer support channels, although Wise limits access to primarily existing customers. The Wise Help Center provides a comprehensive range of articles and FAQs to help users troubleshoot common issues and understand account features. Customers can reach out via phone, email or the contact form available on the Wise website for more specific queries. 

International Availability

Wise operates in 160 countries, making it a highly accessible option for businesses with international operations. This includes regions like Australia, Belgium, Brazil, Canada, Hong Kong, India, Indonesia, Israel, Japan, Malaysia, New Zealand, the Philippines, Singapore, the UK and the US. 

Businesses can access local currency account details in up to 10 currencies, including major ones like GBP, EUR, USD, AUD, CAD and SGD. The platform also allows businesses to send and receive money in over 40 currencies, benefiting from mid-market exchange rates and no foreign transaction fees, although a currency conversion fee may apply.

Despite its extensive global reach, the availability of certain features, such as business cards, can vary by country. For example, business cards are primarily available in the EEA, UK and US, with limited availability in other regions.

Pros and Cons of a Wise Business Account

With impressive features for global businesses, Wise Business accounts offer a range of unique benefits. But they also come with some drawbacks. Here’s a look at the advantages and disadvantages of using Wise for your business banking needs:

Pros

  • Affordable cross-border transactions: Unlike traditional banks that often charge significant fees for cross-border transactions, Wise offers a cost-effective alternative with transparent and competitive pricing. Businesses can send money internationally at a fraction of the cost, making it an attractive option for companies that frequently deal with overseas clients or suppliers.
  • Competitive exchange rates: Wise uses mid-market rates, the fairest exchange rates available and typically more favorable than those offered by banks. This ensures that businesses get more value when converting currencies, which is particularly beneficial for companies that operate in multiple countries and need to manage funds in various currencies.
  • Multi-Currency Management: Businesses can hold and manage money in over 40 currencies, making it easier to conduct transactions and manage finances globally. This feature is complemented by the ability to receive local account details in up to 10 different currencies. This functionality allows businesses to operate across borders without the hassle of opening multiple local bank accounts.
  • User-friendly interface: Wise designed its online dashboard and mobile app to be intuitive and easy to navigate, allowing users to manage their accounts, make transfers, and monitor transactions with ease.
  • Transparent pricing: Wise clearly outlines all fees before transactions are made, and there are no hidden charges. This transparency allows businesses to manage their budgets more effectively, knowing exactly what costs they will incur.

Cons

  • No in-person branches: One significant limitation of Wise is the lack of a physical branch network. Wise operates entirely online, which means there is no physical presence for in-person banking services. 
  • No lending options: Another downside is that Wise’s services are limited to payments and currency exchange; they don’t offer credit facilities or lending options. This can be a drawback for businesses because it limits their ability to access credit and financing solutions directly through the platform, potentially requiring them to seek separate financial institutions for loans and other credit needs, which can complicate their financial management and increase administrative overhead.
  • Limited investment options: Although Wise provides some features to enhance your management of funds, such as the ability to invest in interest-earning funds, these options are relatively basic compared to the comprehensive investment services offered by traditional banks and financial institutions.
  • Not Insured by the Federal Deposit Insurance Corporation: For US customers, it’s important to note that Wise is not FDIC insured. This means that funds held in Wise accounts are not protected by the FDIC, which can be a concern for businesses that prioritize the security of their deposits.

Is Wise Right for My Business?

Wise Business accounts are well-suited for small businesses and freelancers who need a cost-effective solution for managing their finances. With low fees for international transfers and competitive exchange rates, these accounts help small enterprises and independent professionals save money while conducting global transactions. 

E-commerce businesses can also greatly benefit from Wise’s multi-currency capabilities. By holding and converting funds in over 40 currencies, e-commerce companies can operate in multiple markets, receive payments in local currencies and avoid hefty conversion fees. 

For companies with international operations, Wise offers a platform to manage cross-border transactions effectively. With access to local account details in up to 10 different currencies, businesses can conduct international business as if they were local, enhancing their global reach. 

North One: An Alternative to Wise

North One is a financial technology company offering an online-only banking solution tailored for small businesses and freelancers. Key features of North One business accounts include integration with popular accounting software, real-time transaction tracking and unlimited free transactions. Additionally, North One offers customizable sub-accounts for budgeting and robust customer support available through its mobile app. These features make it an attractive option for business owners seeking a straightforward and comprehensive banking experience.

When compared to Wise, North One excels in providing a more traditional banking experience with features such as FDIC insurance, which is crucial for US-based businesses. While Wise offers good multi-currency capabilities and lower international transfer fees, North One stands out with its user-friendly budgeting tools and seamless integrations, making it a compelling alternative to Wise for businesses that prioritize domestic operations and need comprehensive banking support within the US.

You Deserve the Best Business Bank Account

In review, Wise excels with its low fees for international transfers, competitive exchange rates, multi-currency account capabilities, user-friendly interface, and transparent pricing structure. However, it falls short in areas like limited physical presence, lack of credit facilities or lending options, limited investment options and the absence of FDIC insurance for US customers. 

Wise is a strong choice for small businesses, freelancers, e-commerce enterprises and companies with international operations that prioritize cost-effective global transactions and currency management. However, those needing traditional banking features, domestic banking security and extensive customer support may find alternatives like North One more suitable.