With the increasing development in technology in the globalizing world, economic relations with companies or individuals from different countries allow development and maintenance easier. These transactions, such as sending and receiving money, lead us to the most profitable choices.
The article is written by a Turkish expat who lives in Germany. It originally published in Turkish version of Yurtdisindayiz website. Transferwise review is dependent on personal experience with Transferwise for sending money to Turkey.
In this article, we are trying to answer the question of what is Transferwise and trying to help people who want to make money transfer with lower commissions.
What is Transferwise? What is the purpose, and how does it work? We’ll talk about briefly.
Who is Transferwise’s Owner? Founding Story
Transferwise is a company with 6 million users worldwide as of 2020, was founded in 2011 by two Estonians, Kristo Käärmann and Taavet Hinrikus, who live in London and want to find a solution to the cuts made by banks when sending money to their country.
Taavet Hinrikus, who worked as Skype’s strategy manager until 2008, complained that he lost who served as Skype’s strategy manager until 2008.
He complained that he lost %5 of that money when he was sending money to Estonia. Likewise, Kristo Käärmann wasn’t satisfied that there were cuts in the money he sent to Estonia for mortgages. To find a solution to this situation, they developed a system that eliminates borders.
The answer to the question of what is Transferwise and how does it work is very simple: people who want to transfer money where they are located to reduce the commission by ensuring the money doesn’t leave the country where it’s located.
In 2020 Transferwise has 13 offices worldwide, and more than 6 million members are using Transferwise. The amount of money send each month is 5 billion €. The amount of saving in these international money shipments is €1.5 billion!
So when you use Transferwise to transfer money to Germany, you don’t actually send money to Germany. You are using the money of someone who wants to send money from Germany to Turkey.
In normal conditions, when you transfer international money through banks, the receiving bank, the sending bank, the intermediary bank in the form of three institutions that want to make a profit comes into play; Transferwise has wholly eliminated these agents.
In fact, the process of sending money abroad, which seems to be international, occurs like a local money transfer in two different countries.
Let’s give an example through names to embody the working logic:
Hans, who is working in Germany, wants to send 1000€ to his business partner Yusuf in Turkey. Faruk, who lives in Turkey, wants to send 1000€ to his daughter Rana who studies in Germany.
When they transfer this with Transferwise, the 1000€ Hans sent to the system are transferred to Rana’s account, and the 1000€ in Faruk’s system are transferred to Yusuf’s account. Although it’s not something that has changed for you, you get rid of banks’ high commission fees because this is the logic of the transaction in the background.
Because the money stays in the same country, the transfer is eight times cheaper than the bank, and both sides easily handle money transfer.
Learning how the system works can bring the question of whether Transferwise is safe. But there is nothing to wonder about; Transferwise, which is %100 legal. It has international certificates such as FCA (financial executive board) is no different from any bank when it comes to safety. If we look at the event from the perspective of Turkey:
With the decision of BRSA banking regulation and Supervision Agency(BRSA) by United payment services and electronic money and payment services by Electronic Money Inc, a provider authorized as ”financial service provide”.
The video that answers the question of what is Transferwise. The video is prepared by themselves so we can’t see as a Transferwise review.
How to Use Transferwise?
You can open an individual or corporate Transferwise account for free. You can create an account through an app or website, and you can easily register through your Facebook or Google accounts too.
Before you start your transfers, you will have to upload an ID, passport, or driver’s license to confirm your identity and an officially valid bill or a photo of the residence document to verify your address. This step can take 2-3 working days to complete. Other approvals other than identity confirmation will be requested if necessary. No further approval is required as standard.
By entering the transaction details, you can see how much other people will receive in their currency and how many days to take. There is a help center on the site, and you will answer all your questions; you can also send an e-mail to ask questions. Unfortunately, the Turkish site does not have live support and a contact number that you can call by phone.
If you register through a reference code, there is no fee at your first transfer up to 500€. You can also register using the link below.
Is Transferwise Reliable?
The brief answer to this question is yes. Transferwise is reliable. Let’s explain the reasons.
- Since 2011, 6 million users have safely used this system to transfer money between 74 countries.
- An institution controlled by BRSA in Turkey, FCA in England, and FinCen in the USA, just like a bank.
- Transferwise is a system that has published many positive reviews on sites such as world-famous Forbes, Telegraph, Nerdwallet.
- Trustpilot, which scores users’ experiences around the world, has a very high score of 4.6 out of 5 in 88 thousand reviews.
We wanted to list Transferwise’s advantages over bank transfers.
- Lower commission rates on international transfers over banks.
- You can send money to the receiver’s local currency account with the most reasonable exchange rate for international transfers.
- International money transfers are faster than banks.
- There are no hidden fees, like bank transfers.
- You can use the bank transfer method or the debit/credit card method when transferring money.
Are There Any Transferwise Contracted Banks?
Based on What we described above, the Transferwise method doesn’t need any special agreements with the bank. No matter which bank you use, you can send money through Transferwise. For this reason, you don’t need to look at Transferwise contracted banks. All banks are on the Transferwise contracted bank’s list.
Transferwise Review: Transferwise Alternatives
Transferwise is not your only alternative when you are sending money from Turkey or transferring money to Turkey. You can use Transfergo, where the system works similarly and is also an alternative method. In our article – Best ways to send money from abroad -, we discussed which methods you can send money more advantageously. We list all popular techniques along with more traditional methods:
- Western Union
Transferwise Turkey – Receiving Money
We have an answer to what is the Transferwise question, now, let’s look at it what is happening if you are on the receiving side when the money transfer takes place. If you receive payment with Transferwise from abroad, you have to share your name-surname and IBAN information with other parties. This actually makes the transaction no different from a domestic money transfer for you.
This transaction is usually completed within 1 business day after all the necessary items are completed step by step. – If I speak for my personal experience, my money transactions from Turkey to European countries took place within 24 hours.
Short Questions – Short Answers
Transferwise is a company that has been operating for more than 10 years so that you can complete your international money transfer transactions faster, smoother, and inexpensive. In our article, we explained how you could do your transactions in more detail.
Transferwise gives you a much easier experience than many other methods of sending money. All you have to do is complete your transaction safely by following the steps we explained in our article and without missing the essential points we mentioned and wait for the money to arrive at the buyer within 24 hours.
Transferwise is a company with a value of more than 5 billion dollars with its recent investments. It has a rating of 4.6 out of 5 on the Trustpilot site, which consists of user evaluations, and it has a rating well above the site’s overall ratings. Transferwise is a highly reliable company that is audited like a bank. You can find answers to your questions in more detail in our article.
The recipient doesn’t need to have a Transferwise account when sending money with Transferwise. For this reason, you don’t need to look for Transferwise contracted banks. The recipient won’t even know that this transaction took place through Transferwise.