In the age of globalization, one of the biggest challenges businesses face is cross-border payments and international financial management. Today, even the smallest startup may employ a software developer in India, serve a customer in Germany, and source materials from a supplier in China. In such a distributed business model, international money transfers, currency management, and low-cost payment solutions become crucial. This is where the Wise Business Account comes in.
Wise (formerly TransferWise) has become a fintech giant by offering transparent and low-cost international money transfers to millions of users. Today, with its Wise Business service, it provides an alternative to a global bank account for startups, SMEs, and freelancers.
In this article, we will examine Wise Business account from every angle: how to open it, its features, costs, advantages and disadvantages, and how startups can use this account most effectively.
What Is a Wise Business Account?
The Wise Business account allows companies to receive, send, and convert money in multiple currencies at real-time market rates. Unlike traditional banks, it offers:
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Fast setup: Can be done entirely online.
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Transparent exchange rates: Uses the mid-market rate with no hidden fees.
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Global coverage: Transfers to over 170 countries.
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Multi-currency support: Hold balances in over 40 currencies.
This makes Wise a powerful solution for businesses operating globally with lower costs and higher transparency.
Features of Wise Business Account
1. Multi-Currency Accounts
Businesses can hold local bank details in major currencies like EUR, USD, GBP, and AUD at the same time. This means they can receive payments from customers abroad as if they had a local account in those countries.
2. Local Bank Details
Wise provides IBAN for Europe, routing number and account number for the US, sort code for the UK, and BSB number for Australia. This allows international customers to pay businesses easily, as if making a domestic transfer.
3. Low Transfer Fees
Banks often charge 3–5% hidden fees and markups on exchange rates. Wise, on the other hand, applies a small fixed fee plus a transparent conversion fee (usually 0.3–0.6%). For businesses handling high transaction volumes, this results in substantial savings.
4. Global Payment Network
Wise Business allows payments to more than 170 countries, making it a convenient solution for suppliers, contractors, and remote teams.
5. Integrations
Wise integrates with accounting software like Xero and QuickBooks, reducing bookkeeping workload. For e-commerce, it also integrates with Shopify and WooCommerce.
6. Employee Payroll
Wise enables batch salary payments to teams in different countries quickly and affordably.
How to Open a Wise Business Account
1. Application
Apply through the official Wise website under the Business Account section.
2. Required Documents
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Company incorporation documents
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IDs of directors and shareholders
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Tax identification number
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Company activity and address details
3. Verification
Wise follows KYC (Know Your Customer) procedures. If all documents are provided correctly, verification usually takes a few business days.
4. Account Activation
Once approved, businesses can immediately open multi-currency accounts and start receiving and sending payments.
Advantages of Wise Business Account
1. Cost Savings
By using the mid-market exchange rate, businesses avoid losses due to poor bank conversion rates. This is a major advantage for startups handling frequent currency conversions.
2. Global Credibility
Wise is regulated by financial authorities in the EU and the UK, providing trust and credibility for investors and international partners.
3. Flexibility
The account is fully managed online, making it perfect for remote-first startups and entrepreneurs worldwide.
4. Multi-User Access
Different access levels can be assigned to co-founders, accountants, or finance managers.
5. Seamless Integrations
Ideal for SaaS and e-commerce companies thanks to easy integration with payment processors and accounting tools.
Costs of Wise Business Account
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Account Opening: Free.
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Receiving Payments: Free in major currencies.
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Sending Payments: Low flat fee + conversion fee (around 0.3–0.6%).
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Debit Card: Wise Business card can be used worldwide; low fees for ATM withdrawals.
Overall, costs are up to 70% cheaper than traditional banks.
Disadvantages of Wise Business Account
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Cash Handling: Limited options for depositing or withdrawing cash.
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Credit Services: No traditional banking services like loans or overdrafts.
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Local Bank Requirement: In some countries, a local bank account may still be needed for tax compliance.
Who Should Use a Wise Business Account?
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Startups: Especially those with global investors and customers.
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E-commerce Companies: Businesses selling on Amazon, eBay, Shopify, or other platforms.
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Freelancers: Independent professionals receiving payments from abroad.
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Remote Teams: Companies paying employees in different countries.
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SaaS Businesses: Software companies serving global subscription customers.
How Startups Can Maximize Wise Business
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Subscription Payments: Integrate with Stripe or PayPal for recurring revenue.
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Currency Savings: Hold USD payments in the USD account and use them for USD expenses directly to avoid conversion fees.
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Investor Confidence: EU-licensed Wise accounts provide financial transparency.
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Automation: Use integrations for automated financial reporting and streamlined accounting.
Final Thoughts
The Wise Business account is an excellent global banking alternative for startups and SMEs. With low fees, transparency, multi-currency support, and global access, it is a powerful tool for companies aiming for international growth.
Although it does not offer traditional banking services like credit or cash deposits, for digital-first businesses its flexibility, speed, and cost efficiency are unmatched.
