In today’s fast-paced world, transferring money across borders can often be slow, costly, and confusing. However, Wise, a global technology company, is changing the game by building a network that makes international money transfers faster, cheaper, and more convenient. In this interview, Shrawan Saraogi, APAC Head of Expansion at Wise, discusses how their innovative approach is setting them apart in the market, helping Indian customers save time and money while ensuring transparency in every transaction. Saraogi also shares insights on Wise’s mission to eliminate hidden fees and offer the best possible exchange rates, empowering Indian users to manage their international money transfers with ease.
1. What is the most common reasons Indians use Wise for international money transfers?
Wise is a global technology company, building the best way to move and manage the world’s money. The most common reasons we see customers in India using us include paying for children’s education, medical expenses or funding travel-related expenses.
2. How does wise make it easier and more affordable for Indians to send money abroad for education expenses?
The network that Wise built to move money across the world cheaply, quickly and conveniently sets us apart. When sending money internationally through traditional providers, money typically goes through a network of correspondent banks, which makes cross-border transactions slow and expensive. Rather than relying on this outdated network, Wise built a network to make moving money across borders faster, cost-effective, easier and more transparent.
For example, if you’re sending Indian rupees to US dollars, you pay rupees into Wise’s local India account, and Wise pays out to your recipient from our US account. Under the hood, our system matches the currency flows and uses the mid-market exchange rate to convert money and balance money in our respective local accounts.
Our approach is built on transparency — we show all exchange rates and fees upfront, eliminating hidden costs. We also use the mid-market rate (the same you'd see on Google) which means there are no markups. Plus, customers can track their transfer status any time in the app. Our infrastructure also ensures that the recipient will receive the exact amount sent, without intermediary fees or surprise costs along the way which are often common issues with traditional money transfer methods.
3. In what ways can Wise benefit Indian travellers managing their money while abroad?
Wise is a good solution for Indian travellers who need to pay overseas merchants via money transfer. With Wise, people can send money quickly and at a low cost, using the mid-market exchange rate ensuring they get a fair deal without hidden fees.
4. What makes Wise's approach to fees and exchange rates different from traditional banks for international transfers?
People are often unaware of the hidden charges associated with foreign currency transactions. Consumers think they’re getting a better deal than they actually are, or they don’t realise how much costs they pay for exchange rate mark-ups. With foreign currency transactions, there are typically two costs:
• The upfront fee (the advertised cost). Fees vary but can often be portrayed as low-fee or even “free international transfers”. But be aware that the upfront fee may not represent the total cost of the transfer.
• The exchange rate (the hidden cost). When you look up an exchange rate on Google, you are shown one figure: the mid-market exchange rate. This is the mid-point between the “buy” and “sell” rates on the global currency markets. The mid-market rate is considered the fairest exchange rate and it’s the same one you will find on finance authorities like Google.
Traditional providers are not obligated to use the mid-market exchange rate — in fact, many don’t. Often, you will find that an undisclosed markup has been added to the exchange rate. The difference between the rates results in a hidden fee, costing people extra unknowingly when they send money. Indeed, Wise research found that Indians paid over a whopping ₹26300 crores on foreign exchange fees in 2020, of which roughly ₹9700 crores were hidden as exchange rate markups on currency conversions, payments and card purchases. This is an enormous problem and is largely due to the low awareness about costs associated with foreign currency transactions.
Wise doesn’t markup the exchange rate. We use the mid-market rate which anyone can look up on Google, always show our fees upfront and only charge customers a low, upfront fee. No hidden charges, no surprises.
5. Can you share an example of how much an Indian customer might save using Wise for a typical international transfer?
The fees vary depending on a few factors including the currency route and transfer method, but generally speaking, Wise’s average fee is around 0.67% of a transaction. When compared to the global average of 6.35% (according to World Bank data), this is a significant difference, allowing customers to save on international transaction fees. In addition, Wise also saves customers time with our fast transactions. Unlike traditional providers where transactions can take multiple days, transactions with Wise moves much quicker. Plus, the recipient will receive the exact amount sent without hidden fees eating into the amount. This means customers benefit from cost and time savings, as well as a greater peace of mind when sending money internationally with Wise.
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