4 Wise Alternatives In Canada

Wise: Overview

Wise is a foreign exchange financial technology company founded in 2011 and based in the United Kingdom. Wise typically offers foreign exchange services and cash transfers (online and cash pick-up) to customers, and they have now included card services (debit and expense) accepted in over 175 countries. Users can also hold multi-currency accounts to hold or exchange over 50 currencies.

Formerly known as TransferWise and also being compared to the “Hawala money system” in 2011, Wise went on to be valued at $11 billion at IPO in 2021. This financial disruptor claims to offer mid-market exchange rates that include markup, then a transfer fee based on the transfer method selected by the user, and finally has its transfer fee–which is also dependent on the locations of the sender and receiver.

An example of this fee structure is shown below when sending 1000 CAD to a friend in the United Kingdom. Wise will charge 6.58 CAD for this transfer, while the user will be charged the following based on their preferred transfer method.

Also, note that there is still a markup in the exchange rate Wise offers users while it makes bold claims of no hidden fees.

There are other alternatives to Wise you can use in Canada for both foreign exchange and cross-border payment needs you may have–be it of a personal or business nature.

Pesa: Your Free and Secure International Money Transfer App

Pesa (formerly pesapeer) provides instant and safe money transfers or remittances in over 35 countries for free and offers foreign exchange services in over 15 currencies at a mid-market rate.

Like Wise, Pesa offers a multi-Currency wallet that allows users to hold, exchange currency, and transfer (local and international), while the Pesa card is still a product in its development stages. Pesa has no fees and high markups tucked away in their exchange rates like Wise and other alternatives. Peso multi-currency wallet users can only hold money in 5 currencies, while Borderless Wallet users can send and exchange money in over 15 currencies.

Pesa not only provides users in Canada with fast and secure foreign exchange and remittance, but it is also free to use and helps users save money on using their cross-border payment and currency exchange services (with their awesome exchange rates).

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Alternatives To Wise In Canada

If by some weird chance, our offerings at Pesa do not work for you either due to location limitations and transfer options or methods for your remittance and foreign exchange needs, here are other Wise alternatives in Canada.

Western Union

Western Union remains a great alternative to Wise if you prefer cash as a pay-in or pay-out option. Western Union is the oldest established and one of the largest money transfer and currency exchange services in the world. The United States-based company offers customers a variety of payment options as well as a strong network of agents and location for users who wish to send cash from, and location where receipient can pick up the cash in local currency. One of the payment options include transfer from sender’s bank account. Western Union transfer charge fees may vary based on senders' location and payment options, while they have markup added to their exchange rates.

OFX

OFX offers a range of foreign exchange and remittance services for personal and business user needs. OFX offers several international money transfer options that can be made either online, via mobile app or by phone. The platform has 24/7 dedicated brokers who talk customers through their foreign exchange or money transfer via phone call.

Usually, there’s no transfer fee to pay, but OFX’s exchange rate you get to convert your CAD to the required currency will include a markup.

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Remitly

Remitly is another Wise alternative that provides remittance and foreign exchange services. The Remitly transfer can be set up online or via Remitly mobile app with user choosing preferred payment method and delivery speed. Users can either choose between a cheaper economy delivery speed or the pricey, express payments. Remitly pay-out options include deposits to mobile money and bank accounts, and cash collections.

Remitly fees also vary based on user needs and preferences, and their exchange rates include markups.

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Conclusion

When picking a Wise alternative in Canada, a number of factors are to be considered in other to get deal for yourself in every transaction. The best alternative for Wise in Canada should not have a complicate fee system, should not be limited to receiver location, pay-in and pay-out options, high minimum transfer amount (e.g 1,00 USD transfer minimum on OFX), delivery or transfer speed, and should have exchange rate that saves user money on each and every money transfer or currency exchange.

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Create a PESA account today - and start sending and receiving money globally.

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