borderless™ vs. TransferWise (Now Wise): A Closer Look

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The only US based international and local direct debit solution.

borderless™ vs. TransferWise (Now Wise): A Closer Look

6 MINUTE READ

Learn more about borderless™ and TransferWise (now Wise), and how these two international payments solutions compare for you and your business.


borderless™ and TransferWise (Wise)

borderless™ is a US-based global direct bank payment solution, and Wise (formerly known as TransferWise) is a UK-based global money transfer service.

borderless™ is a payment processor, while Wise is better described as a neo-bank. A neo-bank is a direct bank that operates exclusively online without traditional physical branch networks.

Wondering how are we similar? How are we different? Which one is the right solution for your business?

We’ll go over these two services in a number of key categories, including pricing, security, transfer time, types of transfers allowed, and more.

Check out our blog series about how borderless™ compares to other payment processing solutions like PayPal and Stripe.


borderless™ and Wise Comparison Charts >>>


Similarities Between borderless and Wise (ex TransferWise)


International Transfer of Money

Users of both borderless™ and Wise (ex TransferWise) can make international money transfers without having to create a foreign bank account, not including signing up for the neo-bank that a Wise account entails. 

Unlike some P2P services like Venmo or Zelle, which only allow transfers between US bank accounts, both of these services allow for easy global payments.

Here is a list of all the 60 countries to which you can make payments using Wise. Similarly, borderless™ covers over 50+ countries and plans to expand to 80+ countries in 2021.


Secure & Trusted Payment Process

borderless™ uses bank-grade security protocols and highly sophisticated data encryption tools to keep your information and transactions secured

Wise similarly has a secure payment process, using “the latest Transport Layer Security to keep your data safely encrypted in transit and encrypt data at rest.”

Both borderless™ and Wise are trusted by financial institutions and banks worldwide, so you can rest assured that making transfers with both services is secure


Real-Time Payment Tracking

Another shared, useful feature of both is real-time payment tracking. 

Traditional methods of international money transfer like wire transfer are infamous for their lack of transparency. You never know where your funds are, which is disruptive for your cash flow in addition to being inconvenient and frustrating.

Both services offer real-time payment tracking that give you an estimated time of arrival and allow you to always know where your funds are, giving you peace of mind and allowing you to take better control over your payment process.


9 Key Differences Between borderless and TransferWise (Wise)

Although borderless™ and Wise share many similarities, there are a number of differences between them. Here are 6 of these key differences.


1. How Users Can Pay

borderless™ is a direct bank-to-bank payment processor, which allows users to pay with their bank via our direct debit (ACH) solution. borderless™ does not process credit/debit card payments or wire transfers.

borderless™ lets you keep your money where you trust it most, with your bank, while avoiding fees. Instead of creating an intermediary bank account, this setup allows for seamless integration without the hassle or bank fees.

This is in contrast to Wise, which is a neo-bank; signing up for TransferWise essentially entails creating another bank account that you or your business needs to manage.

As a neo-bank, Wise offers several options to make payments:  wire transfer, direct bank debit (ACH), and credit or debit cards. Wise also offers users the option to sign up for a Wise credit card that they can use to make payments both domestically and internationally.

While more options might seem intrinsically better, credit cards and wire transfers actually drive up the cost of making payments, increase transfer time, and exacerbate security risks for international payments. See the Pricing & Fees section below for specific information.


2. Types of Transfers

Another distinction is that borderless™ is primarily a solution for business payments, while Wise is primarily a solution for individuals.

While you can create a business and personal account on both platforms, borderless™ specializes in business payments, whether business-to-business (B2B) or person-to-business (P2B) payments. 

Some examples from the suite of features for business payments that  borderless™ offers include automated international transfers, subscription payments, recurring invoicing, mass payouts, contractor payments, and more.

On the other hand, Wise focuses on person-to-person (P2P) payments, which borderless™ does not currently offer. You can still make payments as a business or to a business on Wise, however.


3. Pricing & Fees 

borderless™ and Wise have very different pricing models, so it is important for you and your business to understand this difference when comparing the two products. 


What You Are Charged For

With borderless™, making payments (with either a personal or business account) is always free. There is no fee for sending money domestically or internationally. You only pay a payment processing fee when you collect a payment however we do provide you the flexibility as a payor to take on the fees. This feature can be used if you are paying out contractors, vendors or payroll.

Wise has the opposite pricing model. Collecting a payment with Wise is almost always free*. However, Wise charges money for when you make a payment on their platform. It does not provide you with the flexibility for your business like borderless™ does.

*The only exception is collecting money via a wire transfer in USD, which comes with a fixed fee of $7.50 USD.


Actual Fee Comparison


borderless™

For both business-to-business (B2B) and personal-to-business (P2B) international payments, borderless™ charges a small fixed fee* that varies by country (e.g. $0.30 for the US, $0.60 for Australia) as well as a variable fee of 2%. International fees are capped at $30 USD or the equivalent in other currencies.

 This maximum is extremely helpful for payments larger than $1,500-$2,000 where the fee is fixed unlike other solutions that have uncapped fees.

Check out the borderless™ pricing page for more information relating to our pricing model.


Wise (Ex TransferWise)

In contrast, Wise charges a fixed fee plus a variable fee for each payment that users send. Both the fixed fee and the variable fee change depending on (1) the country to which the payment is being sent and (2) how the user elects to make the payment: direct debit (ACH), credit or debit card, or wire transfer.

This makes their pricing less transparent and less simple to calculate.

Fixed fees for sending wire transfers are bigger than the other options, and variable fees for sending a payment via credit card are similarly bigger. Businesses and individuals using Wise thus have several options when it comes to making payments as the fees vary greatly by payment method.

For example, for a credit card payment of $3,000 from the United States to Europe, Wise charges a fixed fee of $0.89 and a variable fee of 4.32%, which amounts to $124.69, for a total fee of $125.58 (not including currency conversion). 

But for a wire transfer payment of the same amount, Wise charges a fixed fee of $6.23 and a variable fee of 0.43%, which amounts to $12.82, for a total fee of $19.05 (not including currency conversion).

Check out the Wise pricing page for more information relating to their pricing model.



Direct Comparison

To directly compare the two companies’ pricing, consider a business payment of $10,000 from the United States to Canada. 

With Wise, using a credit card to pay, the total fee is $420.41. If you use a wire transfer to pay, the total fee is $53.05. Using ACH, the total fee would be $78.49. 
With borderless™, the total fee is just $30

No matter which payment method you choose on Wise, borderless™ is the more affordable option, with nearly double the savings if you pay via wire transfer and more than 14x the savings if you pay with a card!

*There are two types of fees that payment processors generally charge: fixed and variable. Fixed fees are usually small amounts that are charged for every payment, while variable fees are a percentage of the amount that is sent or received.



Currency Conversion

borderless™ does not charge users for currency conversion; it is included automatically for international transactions. We also offer volume discounts for businesses who collect or pay more than $1M USD annually giving you an even more competitive exchange rate.

Wise, on the other hand, charges a variable fee. for currency conversion when making an international payment. This fee depends on the currencies that are being converted and is constantly changing based on the mid-market rate. 

For example, converting US dollar (USD) to Euro (EUR) incurs a fee of 0.43%, while converting Euro (EUR) to Chinese yuan (CNY) incurs a fee of 1.13%. Wise’s pricing page provides the exact up-to-date exchange rate for all of their currencies.


4. Data Liability

borderless™ users do not need to collect or share bank information when making payments. 

However, when making payments with Wise, since it is a neo-bank, you must collect banking information such as SWIFT codes or IBANs when making payments.

This impedes the user experience and payment process as you have to manually collect and input that information, which is prone to human error.

borderless™ securely and automatically detects a recipient’s currency and retrieves banking information stored in an encrypted database. All you need to do is enter an email or “@Handle,” which is a unique identifier. 

This amounts to significant data security/liability risks that businesses are exposed to which might cost a hefty amount as a result of this exposure when using Wise.


5. Subscriptions With Rates As Low As 0.1%: Automated Payments

Another key difference between the two solutions is that borderless™ allows for automatic local and international payments to automate subscriptions or recurring invoices while Wise does not. Here is a video of how it works.

borderless™ is built and designed for businesses, and we know that the ability to set up recurring payments is essential for many businesses.

Wise’s lack of this functionality is an important differentiating factor to consider. With this lack of automation, using TransferWise for international payments is a manual process that takes up unnecessary time for your businesses, which has a direct negative impact on your bottom line.


6. Mass Payouts Feature

Lastly, borderless™ allows users to make several payments at once with the Mass Payouts feature, while Wise lacks this feature. 

Businesses that conduct international commerce often need to execute many payments to both individuals (contractors, payroll, commission, etc.) and businesses, and if you can only make one payment at a time, this impedes the efficiency of the payment process.

borderless™ is thus more convenient than Wise when it comes to making several global bank payments at once with $0 wire fees, saving you time and money.


7. E-Commerce

As a payment processor and not a neo-bank, borderless™ offers users the ability to automate your account receivables and get paid in seconds.

Whether it is selling to consumers or businesses via e-commerce, borderless™ provides an e-commerce plugin that can increase businesses’ conversion rates and simplify the payment process for your clients. The funds are directly deposited in your bank account making B2B e-commerce easy, affordable and accessible for payments up to $500,000 USD. You can get paid immediately online or attach a payment link to a quote streamlining your sales operations.

Wise, as a neo-bank, does not have this functionality and cannot assist your business with conducting simple and affordable e-commerce.


8. On-Demand Direct Debit

With borderless™’ On-Demand Direct Debit feature, we allow our users to set up a payment plan with their customers that allows for on-demand debiting of funds.

The process is intuitive and simple, with just four easy steps: Opt-in or Get Invited, Create a Free Account, Subscribe, and Track & Cancel Anytime.

Essentially, users subscribe to a plan with a maximum amount, allowing the recipient company to debit their account at any time without exceeding a maximum agreed-upon amount.

In contrast, Wise does not have an on-demand direct debit feature.

The ability to streamline your business’ payment process is very important. With less hassle and unneeded reconciliation time, this feature makes borderless™ the clear winner in this category.


9. Ability to Make Payments to Non-Users

borderless™’  Claim Payment feature allows you to make payments to non-borderless™  users in just 3 easy steps. Check out this tutorial video to learn more:

Conversely, Wise does not have a claim payment feature.

Only borderless™ allows you to make payments to non-users, greatly expanding the use cases and flexibility of the payment solution.


Final Thoughts

borderless™ and TransferWise are two possible solutions for making and accepting international business payments. In summary, borderless™ has been designed with businesses in mind developing the right tool set for them to grow and expand while saving time and money.

borderless™ is created by dreamers, for dreamers. That’s why we care about what matters most to your company: your bottom line, ease of use, and innovative features to boost your efficiency. 

Have specific questions about your business? Want to migrate from Wise? Talk to one of our payments experts today or email sales@getborderless.com.

It’s time for peace of mind with simple, cost-effective, and secure local and international payments. 

Get borderless.

For more information about specific differences between borderless™ and Wise, check out our helpful comparative charts below.


General

borderless vs wise general comparison chart


Payments & Transfers

borderless vs wise payments transfers comparison chart


Capabilities

borderless vs wise capabilities comparison chart

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