Wise Business Review: an account for the modern business?

If you're looking for a modern business account option for your company, Wise Business is an online business account that provides a range of services. From global payments to online invoicing, the Wise Business Account gives you the flexibility to manage your finances in one place.

If having an international payments-ready business account sounds like a good fit, read on to learn more about the benefits of opening a Wise Business account.

Wise offers a variety of features to assist you with your finances.

Pros

• Global payments in 50+ currencies: Wise allows you to make international payments quickly and easily.

• Free to open and hold an account: You won't pay any fees to maintain your account, though there is a £45 one-off charge to get verified.

• Access to invoicing tools via app/website: Invoicing, reports, and other features are all accessible via the website or app.

Cons

• Fees to transfer and exchange money: You will incur fees when moving money between accounts or exchanging currencies, albeit comparatively low ones. On the plus side, Wise will tell you exactly how much you are being charged and won’t hide fees in the exchange rate.

• No overdraft options: Wise does not offer overdrafts, so you will need to stay within your account balance.

Source: Exiap

Originally known as "TransferWise,"  Wise  is a digital banking platform founded in 2011 by Taavet Hinrikus and Kristo Käärmann. The company's mission is " money without borders” - making international payments easy and cheap.

The company was listed on the London Stock Exchange in 2021 and is regulated by the Financial Conduct Authority (FCA) in the UK.

Taken together, Wise has an average rating of 4.4 / 5 across five review platforms and 518,600+ reviews (correct as of 4 April 2023).

Anyone who is 18 years or older can open a Wise Business Account. You'll need to provide your name, address, and date of birth, as well as proof of address. You can then get started with the account set-up process, which involves agreeing to the terms & conditions and setting up security questions.

Wise Business accounts are specifically for:

Limited and public companies

If you’re part of a larger organisation, you can use Wise to manage your complex payments and invoices in one place.

Partnerships

Limited, limited liability and general partnerships are all eligible for a Wise Business account. A copy of the General Partnership Agreement or identification of the managing partner will be required.

Charities/trusts

This is only available in the European Economic Area (EEA), Canada, US, UK, Switzerland, Australia, and New Zealand.

Sole traders and freelancers

Freelancers and sole traders will find Wise useful if they travel abroad, or coordinate with businesses in other countries.

Note: Businesses that operate outside of supported regions – or are involved in cryptocurrency, tobacco, adult content, and/or other prohibited activities – will likely need to utilise an alternative banking service.

Setting up a Wise Business account is quite easy. You will need to submit several details and submit a few documents, including (but not limited to):

• Country of operation

• Industry

• Online or social presence

• Name, date of birth, and country of residence for all stakeholders

• Ownership or control agreement

The person who opens the account will also need to submit personal details, and prove that they are authorised to act on behalf of the company.

Will Wise do a credit check?

No, Wise will not check your credit score when you apply for a business account. You can start using your Wise Business account as soon as your application has been verified and accepted. However, it is important to note that Wise reserves the right to assess the risk of any transaction or activity on its platform.

How long does it take to open an account?

Once you have submitted all the required information, you’ll be asked to set up a transfer and pay a one-time set-up fee of £45 (in the EEA or UK). This starts the verification process, which usually takes fewer than ten days.

If Wise is unable to verify your business for any reason, the fee will be refunded. Once verified, you will be able to view all of your account details.

With the Wise Business account, you can access various features that make for a seamless banking experience.

Multi-currency account

You can open a multi-currency account with Wise, which allows you to convert into 50 different currencies. You can take advantage of real-time exchange rates when converting between currencies, with low and transparent fees.

API

You can connect your Wise Business account to third-party business applications via a secure API. This allows you to integrate Wise into the financial tools that your business already uses, making for easier, automated payments.

Business debit cards

Throw out the expense receipts by distributing international debit cards to your teammates worldwide. The card is tied directly to business accounts with pre-set spending limits and real-time tracking. Users will earn 0.5% cashback and enjoy no foreign transaction charges.

Significant interest rate

With Wise Interest accounts, you can enjoy a 4.54% variable rate to get your money working for you. The government-backed fund doesn’t lock your money away either –you’ll have full access to spend, send, and receive just like normal.

The Wise Business Account has no monthly fees, though there is a one-time startup fee. For companies in the EEA or UK, it is £45. Other regions have variable startup fees that usually range between 16-42 GBP.

You will incur a fee when transferring money between accounts or exchanging currencies, but the exact amounts vary depending on your country and payment method. Remember that some features – like the multi-currency account – may be subject to additional costs depending on usage.

For UK and Singapore customers, Wise offers an Assets account to invest and make your money work for you. There is a .55% annual fee to hold the account, with a 3.48% variable rate return to users.

Here is a breakdown of Wise's fees for account holders:

Customers considering a business account with Wise will want verification that they will be able to access their money at a moment’s notice and transfer large sums without worry. Here’s a look at some of the ways Wise keeps your money safe.

Investment and safeguarding

Because Wise isn’t a bank, it doesn’t loan out customer funds to other businesses. By operating a diverse portfolio of cash deposits and secure assets, it ensures your money is available whenever you need it.

The company holds safeguards in Barclays, Citibank, JPMorgan Chase, and invests primarily in UK government bonds. Only 2% of the Wise portfolio has a term greater than three years, meaning it can remain liquid.

Data security

The platform encrypts all of your information to keep it safe from hackers. You can rest assured that Wise will never share personal or financial information with third parties.

Some safety features include:

• Two-factor authentication: This adds an extra layer of security to your account, as you will need to enter a secondary code in addition to your username and password.

• Biometric authentication: For even more peace of mind, Wise also offers biometric login options like facial or fingerprint recognition.

• Auto-lock: If activated, your Wise account can automatically lock after two or ten minutes of inactivity, requiring biometric identification to unlock.

• Secure storage: While some personal and transactional data is stored, Wise deletes all unnecessary information and is on the cutting edge of server security.

• Fraud protection:  If you suspect any fraudulent activity on your account, you can reach out directly to Wise's customer service team.

For more information on how Wise is protecting your money and sensitive information, see here.

A UK Wise Business Account is regulated by the FCA (Financial Conduct Authority), with registration number 900507. For other countries, various regulatory bodies are responsible for monitoring Wise:

• Australia: ASIC

• Canada: FINTRAC

• Japan: Kanto Local Financial Bureau

• US: FinCEN

• Singapore: MAS

The company provides a full list of regulatory details on its website.

It's easy to contact Wise's customer service team directly through email or live chat. The support team is knowledgeable in a variety of topics, such as account setup, payments, currencies, and more.

You can also access the platform’s ‘Help Centre’ for answers to commonly asked questions regarding accounts and services.

• Email: Sent via Wise account

Live chat: contact Wise here

Wise does not offer loans or overdrafts.

International payments

As mentioned earlier, a Wise Business Account allows you to make international payments in up to 50 currencies. The platform has partnered with a number of payment networks around the globe, so you can easily transfer funds from your account in one country to an account in another.

The fees for these transfers depend on the currency being sent and the payment method used; however, some are free or charged at a lower rate than bank-to-bank transfers.

Plus, you get access to real-time exchange rates when converting between currencies, so you can be sure your transactions are competitively priced.

Batch payments

Batch payments are supported by Wise, requiring minimal time or effort from the business account holder. After uploading a file containing payment details, users only have to make a single payment, and Wise's batch payment tool will automatically distribute funds as needed.

The tool can support up to 1,000 transfers from one .CSV or .XLSX file.

Starling Bank

For businesses based in the U.K., Starling Bank is a solid alternative if you're looking for an affordable, digital bank. Starling's won several  awards for their innovative approach to online banking, and offer large loans at competitively low interest rates.

Something to factor into your decision is the region that Starling Bank primarily serves. If you need to make international payments regularly, or would prefer to interact with representatives in a brick-and-mortar establishment, Starling is likely not for you.

Why it's a good alternative: Starling's 24/7 support and quick account activation are extremely efficient, and their loan and overdraft options are highly competitive.

N26

For customers based in the E.U., N26 is a great alternative to Wise.  N26 is a challenger bank that offers an intuitive mobile banking app, free of charge. You won't incur any fees when making international payments or exchanging currencies with the N26 Mastercard, and supports Wise API (if you're already using the service).

Similar to Starling Bank, it's important to note the region that N26 primarily serves; if you need access to more than 19 different countries for payment transfers, this may not be the best option.

Why it's a good alternative: For shared accounts, N26's Spaces feature allows users to organise and allocate their funds. Additionally, the N26 app is slowly developing support for cryptocurrencies.

In conclusion, Wise Business Accounts is a great choice for businesses of all sizes. It's free to open and hold an account, and you get access to features such as invoicing tools, API integration, and international payments in up to 50 currencies.

That said, if you're looking for services like loans or overdrafts, or you typically make larger withdrawals throughout the month, Wise may not be for you. The bank also does not support cheques, which can be a setback if your company doesn't use direct deposit.

Overall, Wise Business accounts are a great digital banking platform for businesses of all sizes. You get access to a range of features that make managing finances easier, and the platform is backed by security measures to keep your data safe.

Whether you're looking for an international payments solution or need an invoicing tool for clients, the Wise Business Account is a reliable, cost-effective choice.

Check out our other reviews

Researching all the options available to you as a business person is vital to making the right decision. Our expert team has written in-depth reviews of various business accounts and platforms - check them out below:

• Revolut Review
• Airwallex Review
• Cashplus Review
• Tide Review
• Wise Review
• Starling Review
• GoCardless Review
• Soldo Review