How Does Wise Work? A Complete Guide 2026:
How Does Wise Work? A Complete Guide 2026
If you are interested in international money transfers with Wise but have questions about how to use it, this guide is for you. We’ll walk through the features of a Wise account, how to use Wise, its fees and exchange rates, and a complete step by step on how Wise works to send money, locally and overseas.
Wise Key Points
It’s free to create a Wise personal account
Your recipient does not need a Wise account to receive money
Pay for your Wise transfer with a card, using your online banking, or from a Wise balance you already hold
Your funds are converted to the currency you need using the mid-market exchange rate with a small, transparent fee
Payment is deposited into your recipient’s bank account in their currency – often instantly
Use your Wise account to receive payments in 9 currencies conveniently
Hold 50+ currencies in your Wise account and manage them from your phone
Get a Wise card to spend and withdraw in 170+ countries
What is Wise?
Wise was launched in 2011 in London, and is now trusted by over 16 million users worldwide. It’s overseen by 15+ regulatory bodies in the countries and regions where it offers services, and has a 4.3 out of 5 star, Excellent rating on Trustpilot, from over 190,000 live reviews.
Which services does Wise offer in Australia?
Customers in Australia can open a Wise account online or in the Wise app. Here’s a rundown of the Wise services you can access in Australia:
Multi-currency accounts to hold and exchange 50+ currencies, with local bank details to receive payments in 9 currencies
International debit cards for convenient spending and cash withdrawals in 170+ countries
International money transfers to 70+ countries, which use the mid-market rate and low fees from 0.43%
Local money transfers in AUD to banks in Australia, with low fees and fast delivery
Business multi-currency accounts, debit and expense cards and payment services
How does Wise work?
We’ll cover more detail of the Wise services available in Australia later, but it’s helpful to know a bit upfront about how Wise works. To use Wise you’ll need to first register a Wise account. You can then access a selection of services including a multi-currency account, debit card, and one off or recurring local and international payments.
Wise offers a couple of features that are not always available through banks and other currency exchange services:
All currency conversion uses the mid-market exchange rate with low, transparent fees – this is part of Wise’s commitment to transparency and driving down service costs, and makes it far easier to check and compare the real costs of the transactions you’re making
Wise international payments are processed through Wise’s own payment network, rather than SWIFT, which can mean transfers arrive instantly – 50% arrive in seconds, and 90% in 24 hours – and which also keeps down costs compared to banks.
How does Wise make money?
So, given Wise does a couple of things many other providers don’t – how does it work and how does Wise still make money?
We mentioned that Wise uses its own payment network for transfers. This means that when you send money with Wise you pay using a local transfer in AUD, to Wise’s Australian bank account. Wise will then convert the funds at the agreed amount, and deposit this amount in the currency you need to your recipient, from the Wise account in the destination country. This cuts out the SWIFT network usually used by banks, and means your money doesn’t really need to cross any borders. That keeps costs down, and means Wise can still make money, while charging customers less.
Wise is transparent about the fees on all services they offer, so you can see exactly how they’re making money when you use them – and so you can compare their fees against other services easily.
How to use Wise
Wise has a handy range of services for anyone. With Wise you can send money to friends and family in foreign currencies, use it when you travel, when you pay bills overseas or shop online. There’s also a good selection of options for businesses, entrepreneurs and freelancers who can access all the features offered to Wise personal customers, with a few extra business friendly perks. Here’s what you can get with Wise:
Wise personal accounts to hold 50+ currencies
Wise Business accounts to hold, send, spend and receive dozens of currencies
Currency conversion which uses the mid-market exchange rate and fees from 0.43%
Personal and business debit cards for spending in 170+ countries
Easy ways to receive payments in AUD and foreign currencies
We’ll cover all of these features in more detail below. Click here to read more about Wise personal vs business.
How to open a Wise account
You can open your Wise account online or through the Wise desktop app. The process is pretty simple and can be done without leaving home.
Here’s how to open a Wise account step by step:
Open the Wise desktop site or download the Wise app
Confirm you want a personal Wise account
Register with your email address, or an Apple, Google or FaceBook account
Follow the prompts to enter your personal details
Upload your ID documents for verification
Once your account is verified you can order a debit card, send payments, and receive money to your Wise account
What documents do I need to get verified on Wise?
We mentioned you need to upload some ID documents for verification. Verification is part of how Wise keeps customers and their money safe.
Just like when you open a bank account you need to show some ID, when you set up a Wise account you’ll be asked to do the same. However, because Wise offers a fully digital service, you can do everything from home with nothing more than your phone. Just take clear pictures of the documents needed and upload them when prompted.
Usually to open a Wise personal account the documents you’ll need include:
A valid ID document like a passport, national ID document or driving licence
A proof of address like a utility bill or bank statement in your name
How to open a Wise Business account
Opening a Wise Business account is a straightforward process, but there are a few more documents, and a bit more information needed to get started. This is part of the verification process, and a legal requirement. You’ll be guided through everything step by step using onscreen prompts, and if you need extra help, you can also reach out to Wise customer support.
Here’s how to open a Wise account step by step:
Open the Wise desktop site or download the Wise app
Confirm you want a Wise Business account
Register with your email address, or an Apple, Google or FaceBook account
Enter your personal details, and the business information requested on screen
Upload your personal and business documents for verification
Pay the one time fee to access full business account features
Once your account is verified you can start to transact
How do I verify my business on Wise?
We mentioned there are a few more documents needed to open a Wise Business account. The good news is that you’ll be able to save your application progress if you don’t have everything to hand – and the entire application, verification and onboarding process can be done with your phone or laptop.
To open a Wise Business account you’ll need:
ID and address documents for the account owner
Information about the business including address, industry and registration number
Names, date of birth, and country of residence for directors and shareholders who own 25% or more of the business
How does Wise work to send money
Wise offers local transfers in AUD, as well as international payments to 70+ countries, in 50+ currencies. You can set up your payment online or in the Wise app, for deposit to your recipient’s normal bank account.
Here’s how to transfer money with Wise, step by step:
Log into your account and tap Send money
Enter how much you want to transfer, or how much you need the recipient to get
Confirm if the payment is personal or paying for goods or services
Enter the recipient’s details – bank account number or email
Fund your payment using a supported payment method like a bank transfer or card
Confirm and your money will be on the move
Transfer limits and payment methods supported by Wise
You can send a Wise payment funded in AUD, and pay using any of the following methods:
Bank transfer
Debit or credit card
POLi
PayID
Send money from your Wise balance
Wise payment limits depend on where you’re sending money to, and the way you choose to pay. Usually you can send up to 1.8 million AUD by bank transfer and POLi, up to 18,000 AUD by card, and up to 50,000 AUD by PayID.
How to send money Wise to Wise
If you and your recipient both have Wise accounts open, you can send an instant transfer Wise to Wise, and pay with your Wise balance.
Here’s how to send Wise to Wise transfers:
Log into your Wise account and select Send Money
Enter the amount you want to send, or the amount and currency you want your recipient to get