Is Wise (TransferWise) a British bank?
Wise (formerly TransferWise) is not a bank — it is a UK-founded electronic money institution (EMI) regulated by the FCA. Founded in London in 2011 by Estonian entrepreneurs, Wise is headquartered in the UK and is listed on the London Stock Exchange. It is authorised by the FCA as an EMI, meaning customer funds are safeguarded rather than protected by FSCS deposit insurance.
How does Wise work and is it safe to use?
Wise provides international money transfers and multi-currency accounts, using mid-market exchange rates to offer cheaper transfers than traditional banks. Customer funds are held in safeguarded accounts, separated from Wise’s own operating funds — meaning if Wise fails, your money is ring-fenced. Wise is also regulated in the EU, US, Australia, and other jurisdictions, and processes over £10 billion in transfers each month.
Why is Wise refunding money and is this normal?
Wise sometimes issues refunds when a transfer cannot be completed — for example, if the recipient bank rejects the payment, if there is a compliance hold, or if the exchange rate moved outside the locked rate period. Refunds are processed back to your original payment method, typically within 3 to 5 working days. If you receive an unexpected refund, check your Wise app for the reason under the transaction details.
Open Banking in Practice: Wise is legal in the UK and widely used by individuals, freelancers, and businesses for international transfers and multi-currency banking. It is not the same as a UK bank — deposits are not FSCS-protected — but the FCA safeguarding requirement provides meaningful protection. Wise uses open banking APIs to allow customers to pay for transfers directly from their UK bank account. Read more about money transfer services on openfuture.world.
FAQ
Is Wise the same as PayPal?
No — Wise specialises in international bank transfers using mid-market exchange rates; PayPal is primarily a digital wallet and payment platform with higher fees for FX.
Is my money safe with Wise?
Wise holds customer funds in safeguarded accounts; your money is ring-fenced from Wise’s operations, but is not FSCS-protected as with a licensed UK bank.
Can I use Wise as a main UK bank account?
Wise offers a UK account number and sort code but is not a bank; for FSCS-protected everyday banking, a licensed bank such as Monzo or Starling is more appropriate.