If you plan to become a seller on Amazon, working with customers from different countries, you will have to deal with finances in different currencies. The conversion process, commissions, and moving funds between accounts can be a real headache. In such cases, a multi-currency account becomes an integral part of your financial strategy. And in this context, Wise offers a great solution for those who want to effectively manage their finances in different currencies. Moreover, it is an ideal solution for non-US residents who use the American platform Amazon to conduct business. In this article, we'll take a look at the benefits of using Wise for your business or startup on Amazon and explain how it can greatly simplify your financial transactions.

What is Wise?

Wise (formerly known as Transferwise) is a UK-based online service for international money transfers that is hugely popular among Eastern Europeans. Let's take a closer look at what Wise is and why it's worth a look.

Founders and success story

Wise was founded in 2011 by two enterprising Estonians: Taavet Hinrikus, a former strategy director at Skype, and Kristo Käermann, a management expert. The interesting fact is that they started their project with their own funds. However, they soon managed to raise an investment of $1.3 million, followed by another $6 million and separately $26 million from Richard Branson.

In its first year, Wise spent €10 million in international transfers. In 2012, Wise was recognized as one of the "20 Most Promising East London Tech Startups" by The Guardian, Startup of the Week by Wired UK and one of five "startups to watch out for" at the Demo Day Seedcamp event in the US, according to TechCrunch.

In May 2017, the company announced that its customers send more than £1 billion every month, and has become profitable just six years after it was founded.

On February 22, 2021, the service rebranded as Wise (which translates to "wise") and moved to a new domain.

Benefits of Wise

Wise provides the ability to send money abroad quickly, with minimal additional costs and easily. In particular, Wise is popular in many countries due to the lowest rates in the foreign exchange industry. This, combined with a vibrant brand, has made the company one of the leading international money transfer providers in the world. Wise's rates are lower than popular competitors such as Western Union or PayPal.

Today, Wise has an audience of more than 12 million users, including individuals who occasionally send relatively small amounts of money, as well as companies whose transfers exceed several million dollars per month.

Why use Wise for business on Amazon?

More and more businesses operating on the Amazon platform are turning to Wise as a trusted partner for their international financial transactions. Wise provides a number of benefits that make it an ideal choice for Amazon business owners. Let's take a look at why using Wise can significantly improve your business operations.

Multi-currency account for the convenience of your business

One of the key reasons to choose Wise for your Amazon business is the availability of a multi-currency account. Wise specializes in direct transfers to bank accounts and provides a fair mid-market exchange rate. This means you'll always get the best exchange rate, which is important for saving money in your business. Wise also provides a multi-currency account linked to an international debit card, making managing your finances even more convenient.

Low commissions to save your budget

Wise offers some of the lowest fees in the international money transfer industry. Send and receive money in over 55 currencies with minimal, fully transparent fees and no hidden charges. When you use Wise for international payments, you can save up to 6x over traditional methods. 

Competitive exchange rates for your benefit

Wise always uses mid-market exchange rates, ensuring you get a fair exchange rate for your money. Unlike some competitors, Wise does not charge additional surcharges for currency conversion. This is especially important for businesses that regularly make international payments or need currency conversion. With Wise you get real value for money.

Fast transfers for business agility

With Wise you can be sure that your money will be transferred quickly and efficiently. 49% of transfers are instant and 80% arrive in the recipient's bank account within 24 hours. This means you can receive your money without unnecessary delays, which is especially important for businesses on Amazon where speed is key.

Ease of use for easy financial management

The Wise platform is designed with usability in mind. It has a simple and intuitive interface that makes it easy to manage payments and track transactions. In addition, Wise offers many useful tools such as a commission and exchange rate calculator, a rate tracker for currency rate notifications, and much more. All this makes working with Wise as convenient and efficient as possible.

Wise and Amazon: A Partnership for Your Success

Importantly, Wise has joined the Amazon Payment Service Providers (PSP) program in early 2023. This means that sellers on Amazon can easily integrate Wise accounts into Amazon Seller Central, connecting as a Deposit Method, and withdraw money quickly and efficiently.

Wise opportunities for sellers on Amazon

International money transfers

With Wise, you can transfer money to over 90 countries using more than 55 currencies. Whether your business is based on the Amazon platform in the US, Europe, UK or Australia, Wise account details are perfect for your needs.

Wise Business

For businesses on Amazon, Wise offers an array of payment solutions. These tools include international payments, currency exchange, and multi-currency accounts. If your company trades internationally on Amazon, Wise can help you save money on fees and manage your finances efficiently.

Wise API

If your company is looking to optimize payment processes, Wise provides an API that allows you to integrate payment solutions directly into your own platform. This opens up new opportunities to manage finances and provide additional payment methods to your customers. Wise is also compatible with popular accounting programs such as Xero, QuickBooks, FreeAgent and many others.

Wise debit card

For convenient payments, Wise offers a debit card that can be used wherever Mastercard is accepted. With the card you will be able to spend in any currency at the real exchange rate, without hidden fees and unpleasant surprises.

How do I use Wise for non-resident Amazon users who want to sell on the US marketplace?

Opening a bank account in the United States for a non-resident who plans to sell on Amazon can be quite a challenge. Non-residents face restrictions when opening bank accounts in the United States. However, there are alternatives that can be considered. Wise, for example, provides a fast and cost-effective way to send and receive US dollars. 

Wise account holders can efficiently manage their finances from anywhere in the world. They have a routing number and US account number that can be used to make payments as if it were a local account. And, as mentioned earlier, Wise provides up-to-date exchange rates comparable to those found on Google. This allows users to know the exact cost of a transaction, with no unexpected or hidden fees.

Regarding pricing, the commission for using Wise varies depending on currency, amount and payment method. Typically, Wise charges a small percentage of the total amount sent as a commission, which can range from 0.35% to 2.85%. The fee varies depending on the currencies being exchanged and the payment method.

The cost of maintaining a Wise multicurrency account:

• Opening or holding a Wise multicurrency account is free of charge.
• Spending from the currencies in your account is free of charge.
• Receiving payments via virtual bank details is free of charge.
• Sending money between Wise multi-currency accounts is free of charge.
• Currency exchange fees range from 0.35% to 2.85% of the conversion amount.
• The fee for funding a multi-currency account is 0.35% in the U.S. and free in British pounds sterling.
• Fixed fees for sending money from Wise multi-currency accounts to international bank accounts.

Conclusion

Using Wise for your Amazon business can help you save time and money by making international payments easier to manage. Wise offers a range of financial solutions to help Amazon sellers and businesses reduce international transaction costs and manage their finances more efficiently.