When it comes to sending money internationally, finding a service that’s fast, reliable, and affordable can feel overwhelming. I’ve often heard people ask whether TransferWise, now known as Wise, works in the Philippines. With its promise of low fees and real exchange rates, it’s no wonder so many are curious about using it in this region.

The Philippines is a hub for remittances, with millions of Filipinos relying on money transfers from abroad. Whether you’re supporting family or managing business transactions, knowing if Wise is a viable option could save you time and money. Let’s explore how it works and whether it’s the right choice for your needs.

Understanding TransferWise

Wise, formerly known as TransferWise, is an international money transfer service designed to provide low-cost and transparent cross-border transactions. It has gained popularity for its competitive exchange rates and user-friendly platform.

What Is TransferWise?

TransferWise is a fintech company that facilitates international transfers at mid-market exchange rates without hidden fees. Founded in 2011, it aims to offer a cost-effective alternative to traditional bank transfers. Known for transparency, Wise displays the exact fees upfront and guarantees locked-in rates for a specified period. It serves individuals and businesses in over 170 countries, including the Philippines, for sending or receiving money abroad.

How TransferWise Operates

Wise uses a peer-to-peer system to match currency transfers locally, enabling reduced costs compared to traditional banks. Instead of physically moving money across borders, it reroutes equivalent amounts in local currencies. For instance, if I send USD to someone in the Philippines, Wise uses its local USD pool to pay out the PHP amount from its Philippine pool. This approach eliminates high conversion fees and speeds up the process. Wise also supports user-friendly tools such as apps and web interfaces for efficient transfers.

TransferWise Services In The Philippines

Wise offers secure, fast, and cost-effective international money transfers to and from the Philippines. It’s an efficient way for individuals and businesses to manage cross-border transactions.

Availability And Coverage

Wise operates in the Philippines, enabling users to transfer money locally and internationally. The service caters to Filipinos sending or receiving funds across 170+ countries. Wise’s platform is accessible online through its website and mobile app, allowing users to create accounts, track transfers, and manage transactions seamlessly.

Supported Currencies And Banks

Wise supports transferring funds to the Philippine Peso (PHP) while allowing users to send money in numerous currencies, including USD, GBP, EUR, AUD, and more. Bank accounts in the Philippines, such as BPI, Metrobank, and BDO, are compatible with Wise for direct deposits. Funds typically arrive in 24 hours for local banks after the transfer is processed.

Wide currency options and established banking connections enhance the platform’s usability for Filipinos handling global remittances.

How To Use TransferWise In The Philippines

Using Wise in the Philippines is straightforward and efficient. The platform enables seamless setup, transfers, and management of international transactions.

Setting Up An Account

Creating a Wise account takes a few minutes. I visit the Wise website or download the Wise mobile app and sign up using my email address, Google, or Facebook account. I provide basic details like my full name, date of birth, and contact information. To ensure compliance with local regulations, Wise verifies my identity by requesting a valid government-issued ID, such as a passport or driver’s license. Once verified, my account becomes fully operational.

For added security, I can enable two-factor authentication to protect my transactions and account information. The platform’s simple interface allows me to complete this process easily.

Sending Money To And From The Philippines

To send money to the Philippines, I log in to my Wise account and select the currency and amount to transfer. Wise shows the exact fees upfront and provides the mid-market exchange rate. I enter the recipient’s bank details, including the bank name, branch code, account number, and full name. The system supports major banks in the Philippines like BPI, Metrobank, and BDO.

For receiving money in the Philippines, I provide my bank details to the sender. Wise deposits the funds directly into my nominated bank account, with transfers typically arriving within 24 hours for local banks. Users outside the Philippines can send remittances in currencies like USD, GBP, or AUD, which the system converts to PHP during deposit. The app tracks the transaction’s progress for assured delivery.

Pros And Cons Of Using TransferWise In The Philippines

Using TransferWise in the Philippines can offer distinct advantages and some limitations. Here’s a closer look at its benefits and potential drawbacks.

Benefits

1. Low Fees

TransferWise charges lower fees than traditional banks. For example, sending $1,000 from the US to the Philippines often costs under $10, depending on the payment method you choose.

1. Transparent Rates

The platform offers mid-market exchange rates without marked-up margins. You always see the exact fees before confirming the transfer.

1. Fast Transfers

Transfers to the Philippines typically arrive within 24 hours for most major banks, such as BPI and Metrobank. During peak hours, some transfers may process within several minutes.

1. User-Friendly Platform

Both the website and mobile app are easy to navigate. Features like transaction tracking, stored recipient details, and built-in calculators enhance user experience.

1. Highly Secure

With two-factor authentication and encryption, Wise ensures account safety, reducing the chance of fraud or unauthorized access.

Potential Drawbacks

1. Bank Limitation

While Wise supports leading banks in the Philippines, smaller banks or rural institutions may not be fully integrated, requiring alternative methods for some recipients.

1. Currency Conversion Requirements

Transfers require users to convert funds into the recipient’s currency, such as PHP, instead of a direct USD-to-USD transfer within the Philippines.

1. Ineligible Payment Methods

Some payment options, like cash pickups or credit card payments, may not be available in the Philippines.

1. Verification Delays

Account verification may take longer if additional document checks are needed during setup, slowing down initial transfers.

1. Fee Variations

Fees can vary based on the payment method, with credit card payments incurring higher charges compared to bank transfers or ACH debits.

Comparing TransferWise To Other Options

Understanding how Wise stacks up against traditional banks and competing platforms helps make informed decisions about international money transfers in the Philippines.

TransferWise Vs. Traditional Banks

Wise provides lower fees and better transparency than traditional banks for international transfers. Banks often include hidden charges in their exchange rates, while Wise uses mid-market rates with no markups. For example, converting USD to PHP through a bank may result in up to 2-3% losses in hidden fees, while Wise charges as low as 0.6-2.0% depending on the transfer amount and method.

Transfer speeds are also faster with Wise. Bank wire transfers can take up to five business days, but Wise completes transfers within 24 hours for most transactions. Banks often require extensive paperwork and manual approvals, whereas Wise operates entirely online, simplifying the process.

Additionally, Wise’s user-friendly mobile app and website provide real-time tracking, unlike banks that generally offer limited transaction visibility. This ensures convenience and transparency, especially for time-sensitive remittances.

TransferWise Vs. Other Money Transfer Platforms

Wise outperforms competitors like PayPal and Western Union in key areas, including cost and transparency. PayPal charges higher transfer fees, between 4-6% in total costs, after applying marked-up exchange rates. Western Union fees vary widely, often exceeding $10 for small transfers, with less favorable currency conversion rates.

Wise guarantees mid-market rates, enabling users to save significantly compared to platforms like Remitly and Xoom, which factor exchange rate markups into their total costs. For example, sending $1,000 to the Philippines with Wise costs around $9.50-18 depending on payment methods, compared to $20+ with most of these alternatives.

Wise processes transfers faster than Remitly’s Economy option, which takes 3-5 days. Most Wise transfers to Philippine bank accounts are completed within 24 hours. The straightforward platform interface also gives Wise an advantage in usability, while competitors may overwhelm users with additional product offerings unrelated to money transfers.

Conclusion

Wise proves to be a reliable and cost-effective solution for international money transfers in the Philippines. With its transparent fees, competitive exchange rates, and user-friendly platform, it simplifies the process for both individuals and businesses. The ability to send and receive funds quickly while maintaining high security makes it a strong contender in the money transfer market.

While there are some limitations to consider, Wise’s overall benefits outweigh the drawbacks for most users. It’s an excellent choice for those seeking a hassle-free way to manage global remittances or cross-border transactions.

Frequently Asked Questions

1. What is Wise, and how does it work?

Wise is an international money transfer service that offers low fees, transparent rates, and fast transfers. It uses mid-market exchange rates and a peer-to-peer system to minimize costs. Users can send and receive money globally via its website or mobile app, with funds usually delivered within 24 hours.

2. Is Wise available in the Philippines?

Yes, Wise is available in the Philippines. It supports transfers in Philippine Peso (PHP) and works with major local banks like BPI, Metrobank, and BDO for seamless transactions.

3. How long does it take for money to arrive in the Philippines using Wise?

Transfers to the Philippines through Wise typically take less than 24 hours to reach the recipient’s bank account, depending on payment methods and processing times.

4. Are there hidden fees when using Wise in the Philippines?

No, Wise is transparent about its fees, which are shown upfront before confirming a transaction. It uses mid-market exchange rates without any hidden charges.

5. How do I sign up for a Wise account?

You can create a Wise account on their website or mobile app by providing basic personal details and verifying your identity with a government ID.

6. Can I send money to other currencies using Wise in the Philippines?

Yes, Wise supports sending money to various currencies, including USD, GBP, EUR, AUD, and more, making it convenient for global transactions.

7. What are the advantages of using Wise in the Philippines?

Wise offers low fees, competitive exchange rates, fast transfer speeds, a user-friendly interface, and secure transactions.

8. Are there any disadvantages of Wise in the Philippines?

Disadvantages include potential delays in ID verification, limited support for smaller banks, ineligible payment methods, and fee variations based on how you fund the transfer.

9. How does Wise compare to traditional banks for international transfers?

Wise is typically faster and cheaper than traditional banks, offering lower fees and mid-market exchange rates, whereas banks often include hidden charges and take longer (up to five business days) for transfers.

10. Is Wise cheaper than PayPal and Western Union?

Yes, Wise is generally cheaper than PayPal and Western Union due to its low, transparent fees and better exchange rates, making it a more cost-effective option for money transfers.

11. What security measures does Wise use to protect transactions?

Wise uses advanced encryption, strict identity verification, and optional two-factor authentication to ensure secure and reliable transactions.

12. Can I track my Wise transactions?

Yes, Wise allows you to track your transaction’s status in real-time via its website or mobile app, providing updates until the transfer is completed.