Customers of DELTAone Hong Kong living outside of Hong Kong may experience high transaction fees for bank transfers.
We recommend you using TransferWise, a money transfer service that significantly reduces fees for international bank transfer.
This service offers up to 8 times lower fees for overseas remittance and faster transaction compared to other overseas remittance providers.
TransferWise's unique mechanism makes this achievable.
In this article, we will look into what TransferWise is, how it works, and the benefits of using it.
Table of Contents
・What is TransferWise?
・The benefits of using TransferWise
・How TransferWise works
What is TransferWise?
TransferWise is an online remittance service that allows you to transfer money easily, quickly, and cheaply at actual exchange rates.
It was founded in January 2011 by Estonians Taavet Hinrikus, Skype's first employee, and Kristo Käärmann.
It is based in London and has 12 offices, including those in New York, Sydney, Singapore and Estonia. More than 6 million users are registered, more than $4 billion is processed every month, and it covers over 645 currency routes.
The Benefits of TransferWise: Fast and Cheap
TransferWise charges only 0.66% for international transfers and offers up to 8 times less in handling fee. Furthermore, the account opening fee and the account maintenance fee are free of charge.
While it generally takes few days after account registration for you to be able to make international transfer with most providers, TransferWise allows you to send money overseas in less than a day.
How TransferWise Works
Why is TransferWise "fast and cheap"? TransferWise’s unique mechanism enables it.
In general, international remittances between two banks are carried out through a network called the "SWIFT". This is like a joint network that connects banks around the world, and transfers are transacted by relaying intermediary banks (e.g. remittance banks → intermediary banks → … → intermediary banks → receiving banks). Therefore, the handling fee is expensive and it takes a very long time to transfer money.
On the other hand, TransferWise works differently. The sender will transfer the money to TransferWise’s bank account in its country. Then, the equivalent amount will be transferred to the recipient from TransferWise’s bank account in their country. For example, a transaction between the USA and Hong Kong will be processed accordingly.
1. The sender will send the money to TransferWise’s bank account in the USA.
2. TransferWise will calculate the equivalent value in HKD.
3. Using the TransferWise’s bank account in Hong Kong, they will send the money to the recipient's bank account in Hong Kong.
TransferWise does not go through the intermediary bank. As soon as the sender completes the transfer to TransferWise’s bank account in their home country, TransferWise will transfer the money to the recipient’s account in the recipient’s country.
This process can save you up to eight times as much as fees, while achieving the same processing time.
The following example compares remittances sent from the United States and Singapore to Hong Kong with other remittance providers.
For all the other countries for comparison, you can check here.
TransferWise Makes Signing Up Easy
Signing up process on TransferWise is all processed online.
You can make your first transfer immediately after the account registration.
All operations are completed in the following six steps.
1.Create a free account
Register for free via app or website. You need an email address or a Google or Facebook account.
2.Select Remittance Amount
Please decide the amount of money to be remitted and check TransferWise's handling fee and estimated arrival date.
3.Enter Recipient Information
Enter recipient information. If you don't know, you can send money to an email address.
4.Identity Verification Completed
Depending on the currency and the amount of money to be transferred, customer identification is required. At this time, an identification document such as a passport is required.
Bank Debit (ACH), wire transfers, debit/credit card transfers.
6.Remittance Procedure Completed, Status Confirmed
Once the process is completed, the remittance status can be checked on your account. As soon as the remittance is completed, the recipient will be notified by email.
Today, TransferWise is used by millions of people worldwide and has received regulatory approval in Canada, Australia, New Zealand, Hong Kong, Singapore, the US, the UK and the European Economic Area (EEA).
If you plan to purchase from DELTAone Hong Kong, consider using the "fast and cheap" TransferWise, the world's trusted money transfer service!