When TransferWise first came into the money transfer market, there were a few well-established names that provided the same services. However, through its services and low costs, the platform made a name for itself in the market and attracted millions of users worldwide. The quality of the services that TransferWise provides its user with has played a critical role in its success.
TransferWise’s primary service is that of online money transfers, for which it has a unique system. This system allows the platform to transfer money with low charges and quick delivery times.
Similarly, the platform serves users with different tools based on their account type. These may include debit cards, business tools, and an API. Through all these features, the company has established itself as a prime choice for users.
Despite the many advantages that TransferWise provides, it also has some disadvantages. These disadvantages are the reason why the company has not grown at the same rate as many experts believed it would. While these disadvantages may create hassles or annoyances for users of the platform, they do not render TransferWise useless.
5 Reason Why Should Not Use TransferWise
Among the many disadvantages of using TransferWise, the top 5 reasons consist of the following.
1) Limited payment options
When it comes to transferring money online, TransferWise has limited options from which users can choose. These options include bank transfer, debit card, or credit card.
Except for these options, the platform does not allow users to pay through other relevant payment options such as cash, cheque, PayPal, etc. It significantly limits the users and makes them switch to other platforms.
For a platform that deals with payments, these options are critical. Similarly, the more options that users have, the better the chances are for TransferWise to gain more users. Overall, many users consider this a disadvantage of using TransferWise.
2) Limited supported countries
As of now, TransferWise only supports transfers to approximately 60 countries. While this is a great number, it is still insignificant compared to some of its other competitors.
For example, PayPal supports transactions in over 200 countries. Similarly, Western Union, although not a direct competitor, supports money transfers in almost all countries around the world.
While TransferWise does support almost all major countries around the world, it falls short on the countries to which users can transfer funds. The platform expects the number to increase soon. However, for now, users are stuck with limited options for transfers.
3) Transfer to bank account only
Another disadvantage of using TransferWise is that users can only transfer money to the recipient’s bank account. It also limits users from transferring their money to others through the platform.
It can be difficult for the recipient to receive any transferred amount if they don’t have access to a bank account. In contrast, PayPal allows users to receive funds to their PayPal account directly. Similarly, Western Union helps users get funds through cash.
As mentioned above, for a company such as TransferWise which deals with money matters, having more options is critical. By limiting these options, the company limits its number of users. Similarly, many users may consider using other alternatives despite the lower prices of the platform.
4) Not suitable for high-value transfers
TransferWise allows its users to benefit from significantly low prices as compared to some other alternatives. Despite that, the platform is not suitable for high-value transfers.
It is because the platform charges users a commission-based fee, which although low, can add up for high-value transfers. The company also lowers its commissions for high-value transfers. However, that does not compensate for its high charges.
For users who want to use TransferWise for high-value transfers, the charges may not be suitable. Therefore, they may switch to other options or alternatives. Overall, the fee is a reason why users with frequent high-value transfers should consider not using the platform.
5) Lacks advanced tools
Apart from its primary money transfer service, TransferWise also provides other tools they can use to enhance their experience. These may come in the form of some limited tools, such as balance or invoice management for businesses. However, the platform lacks some more advanced tools that users may need for their transfers.
These include tools such as the option of direct debits or standing orders that users can utilize to automate their transfers. Similarly, it does not have a budgeting tool for users to use for their transfers. Overall, the TransferWise could do with a few extra tools to make it a complete platform for transfers.
Despite entering a market with well-established competitors, TransferWise made a name for itself among users. The platform provides users with many benefits. However, it may also have some disadvantages. Given above is a detailed analysis of the top 5 reasons why users should not use TransferWise.