Smart Ways to Utilize Wise

• This article is for reference only as it is merely a translated version of the Japanese article below.
  Wiseの賢い活用方法 (Japanese version)

“Want to make better use of Wise but don’t know how?”

Some might find themselves in this situation.

Wise offers an international money transfer service that is up to 16 times cheaper than Japanese banks. In addition, there is the Wise debit card, which allows foreign currency transactions at rates up to 2.4 times cheaper than those offered by Japanese banks. Moreover, Wise provides convenient services such as a multi-currency account that can hold and manage approximately 50 currencies.

Wise is not only beneficial for international money transfers but also offers advantageous features for those who handle foreign currencies, even for those who do not travel abroad.

This article will explain four smart and convenient ways to use Wise effectively.

About Wise (formerly TransferWise)

Wise, formerly known as TransferWise, offers international money transfer services at significantly lower fees compared to traditional methods.

Founded in London in 2011 as TransferWise, the company was renamed Wise in 2021 and is listed on the London Stock Exchange. With a market capitalization exceeding 1 trillion JPY, it is considered a highly reliable company.

Recommended Uses for Wise

１. Holding and Managing Multiple Currencies

About Multi-Currency Accounts

A “multi-currency account” allows the management of approximately 50 different currencies simultaneously in one account.

This means that not only Japanese yen but also US dollars, British pounds, euros, and other various currencies can be managed under a single Wise account. By setting up, you can access account information for foreign currencies, primarily focusing on the top 10 currencies. This facilitates convenient methods for sending and receiving international transfers.

Moreover, holding various currencies serves as a hedge against risk.

Recently, as the value of the Japanese yen has declined, maintaining assets in foreign currencies can help mitigate the risk of loss in asset value due to yen depreciation.

Specifically, if the value of the Japanese yen falls, the asset value denominated in yen decreases. However, if you hold assets in foreign currencies, their value relative to the Japanese yen increases, thereby not only preserving but potentially increasing your asset value through exchange rate gains.

By utilizing Wise’s multi-currency account, you can prepare for the exchange rate volatility of the Japanese yen.

Furthermore, you can exchange currencies freely at any time via the app, always at the mid-market rate, with only a minimal exchange fee involved, allowing for easy and worry-free currency conversion.

２. Receiving International Transfers into a Wise Account

If you wish to receive international transfers in foreign currency without converting it, you can obtain bank account information for the following ten currencies and receive the money without any fees.

The ten currencies for which account information can be obtained are:

• US Dollar
• British Pound
• Euro
• Australian Dollar
• New Zealand Dollar
• Singapore Dollar
• Romanian Leu
• Canadian Dollar
• Hungarian Forint
• Turkish Lira

For these currencies, you can obtain account information as if you had a bank account in those respective countries. In other words, having just one Wise account is equivalent to owning a bank account in each of these foreign countries.

Obtaining this account information enables a very convenient feature: receiving foreign currency transfers without any fees.

For example, if you receive a payment in US dollars from the United States, having the US dollar local account information with Wise allows you to receive the money in US dollars, just as if it were a domestic transfer in the USA, with no fees.

Similarly, when receiving transfers in euros from France or Germany, or pounds from the United Kingdom, if the currency is one of the specified ten, you can use the account information to receive the money in the original currency without any fees.

This feature is essential for freelancers and nomadic workers who receive payments in foreign currencies from clients worldwide.

By setting up just one Wise account, you can enjoy these substantial benefits.

3. Shopping with Foreign Currency Using the Wise Debit Card

Funds in your Wise multi-currency account can also be used for online shopping payments directly in foreign currency using the Wise debit card.

If you have US dollars in your account, you can make payments in US dollars using the Wise debit card. This card also simplifies payments in other currencies with just one card.

You can convert Japanese yen to US dollars at a favorable exchange rate and use it for various purposes, such as traveling or business trips to the USA, or when shopping on foreign websites.

Moreover, even if you do not have the currency needed for a payment, the card can automatically convert from other currencies in your account at the real exchange rate.

This card is truly convenient and cost-effective, so it is highly recommended to obtain one.

For more details about the Wise debit card, please refer to the following article.

• How to Make and the Benefits of a Wise Debit Card for Use Abroad

4. Withdrawing from International ATMs with the Wise Debit Card (No Fee)

Using the Wise debit card allows for free ATM withdrawals twice a month, up to a limit of JPY 30,000.

Typically, when withdrawing local currency from international ATMs with standard cards, the exchange rate set by the international brand is applied. Additionally, a foreign transaction fee of 2-3% is usually deducted.

However, using the Wise debit card applies the real exchange rate, eliminating fees associated with rate differences. Furthermore, converting yen to foreign currency incurs only a minimal fee, making it substantially more cost-effective compared to regular cards.

It is important to note, however, that from the third ATM use onwards in the same month, a fee of JPY 70 per transaction is charged. For withdrawals exceeding JPY 30,000 in a month, an additional fee of 1.75% and a fixed charge of JPY 70 apply, yet this is still more advantageous compared to standard cards.

Summary

This article explained clever and convenient ways to use the international money transfer service Wise.

The main methods introduced are as follows:

• Holding and managing multiple currencies
• Receiving international transfers into a Wise account
• Shopping with foreign currency using the Wise debit card
• Withdrawing from international ATMs with the Wise debit card (no fee)

For those who want to hold and settle in foreign currencies, exchange currencies, and manage international transfers and receipts both cost-effectively and efficiently, using Wise is strongly recommended.