Using Wise to Send Money in Japan as Expats: A Comprehensive Guide

TOKYO – By understanding the setup process, transfer methods, and fees, you can make informed decisions and manage your finances more efficiently.

KEY TAKEAWAYS:

Wise offers low fees and transparent pricing, using real exchange rates for sending money to and from Japan.
Setting up and using Wise is straightforward, involving simple registration, identity verification, and multiple payment options.
Wise ensures secure transactions with two-factor authentication and dedicated anti-fraud measures, making it a reliable choice for expats.

Table of Contents

Introduction of Wise
Why Choose Wise?
Setting Up Your Wise Account
Making a Transfer
Receiving Money
Security and Compliance
Practical Tips for Expats
Conclusion

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Introduction of Wise

For expatriates living in Japan, managing finances across borders can be challenging. Sending money back home or receiving funds from abroad often involves high fees and poor exchange rates. Wise (formerly TransferWise) offers a solution that simplifies this process with lower costs and transparent pricing. This article provides an in-depth guide on using Wise to send money to and from Japan, covering registration, transfer processes, fees, security, and practical tips.

Why Choose Wise?

Wise stands out in the crowded field of international money transfer services for several reasons:

Low Fees: Wise charges significantly lower fees compared to traditional banks. For instance, sending USD 1,000 to Japan using a bank debit costs USD 1.60 plus a small percentage fee.
Transparent Pricing: You can always see the total cost upfront, with no hidden charges. Wise uses the real exchange rate, which is the rate you find on Google or XE, without any markups.
Speed: Transfers are usually completed within a few days, and often much faster if using debit or credit cards.
Security: Wise employs robust security measures, including two-factor authentication and dedicated anti-fraud teams, ensuring your money and data are safe.

Setting Up Your Wise Account

Registration: To start using Wise, you need to register for an account. The registration process is straightforward and can be done online or via the Wise app:

Sign Up: Visit the Wise website or download the app. You can sign up using your email, Google, or Facebook account.
Verify Your Identity: For security purposes, you may need to provide a photo of your ID, especially for large transfers or certain currencies. This step helps prevent fraud and ensures compliance with international regulations.

Adding Funds: You can fund your Wise account in several ways:

Bank Transfer: Typically the cheapest option but may take a bit longer compared to card payments.
Debit Card: Fast and generally cheaper than using a credit card.
Credit Card: Offers speed but can be more expensive due to higher processing fees.

Making a Transfer

Step-by-Step Guide

Log In: Access your Wise account on the website or app.
Start a Transaction: Select the amount you want to send and the currency.
Add Recipient Details: Enter the recipient’s bank details, including name, address, bank account number, and potentially an IBAN or SWIFT code.
Verify Your Identity: If not already done, complete the identity verification process.
Pay for Your Transfer: Choose your preferred payment method (bank transfer, debit card, or credit card) and complete the payment.
Track Your Transfer: You can track the progress of your transfer through your Wise account. The recipient will also be notified once the money is on its way.

Fees and Exchange Rates (As of July, 2024)

Wise offers competitive fees and uses the mid-market exchange rate, ensuring you get the best possible deal. Here’s a breakdown of typical fees for sending USD 1,000 to Japan:

Bank Debit: USD 1.60 + percentage fee.
Wire Transfer: USD 4.14.
Debit Card: USD 11.27.
Credit Card: USD 37.44.

These fees are significantly lower than those charged by traditional banks and other money transfer services.

Receiving Money

Setting Up Your Account

To receive money in other countries like the Philippines, Indonesia, Vietnam, Singapore or Japan, you need to provide the sender with your bank details. Wise will transfer the funds directly to your local bank account. Ensure you have the correct bank details to avoid delays.

Bank Fees in Different Countries

Philippines: In the Philippines, receiving money through Wise is often cheaper than traditional bank transfers. Banks may charge a small fee for receiving funds, but these are generally lower compared to other international money transfer services.
Indonesia: In Indonesia, Wise offers competitive rates and low fees. Local banks might charge a small fee for receiving international transfers, but these are usually minimal and clearly communicated by Wise during the transfer process.
Vietnam: Receiving money in Vietnam via Wise is straightforward, with lower fees compared to other services. Vietnamese banks typically charge a small fee for international transfers, but Wise’s transparency ensures you know the total cost upfront.
Singapore: In Singapore, Wise is a popular choice for receiving international funds due to its low fees and fast transfer times. Local banks usually charge minimal fees for receiving international transfers, making Wise a cost-effective option.
Japan: Japanese banks may charge fees for receiving international transfers. For example, JP Post Bank charges a flat fee of JPY 7,500 per transaction. Some banks, like PRESTIA, offer lower fees or fee waivers for certain customers.

Security and Compliance

Wise takes security seriously and implements several measures to protect your funds and personal information:

Two-Factor Authentication: Ensures that only you can access your account and authorise transactions.
Data Protection: Wise is committed to keeping your data safe and transparent about how they collect, process, and store it.
Anti-Fraud Measures: A dedicated team works around the clock to prevent fraud and protect your money from sophisticated scams.

Practical Tips for Expats

Use Local Banks Wisely: While Wise offers excellent rates, you may sometimes need to use local banks for certain transactions. Be aware of the fees and exchange rates offered by Japanese banks.
Understand Local Regulations: Familiarise yourself with Japan’s financial regulations, such as the requirement for a My Number card for large transfers.
Plan Transfers: For larger amounts, consider using bank transfers to minimise fees. For smaller, urgent transfers, debit cards may be more convenient despite slightly higher costs.
Track Exchange Rates: Use the Wise app to monitor exchange rates and plan your transfers when rates are favourable.

Conclusion

Using Wise to send money in Japan as an expat offers numerous advantages, including lower fees, transparent pricing, and robust security. By understanding the setup process, transfer methods, and fees, you can make informed decisions and manage your finances more efficiently. Whether sending money home or receiving funds from abroad, Wise provides a reliable and cost-effective solution.

References

Send Money to Japan. Retrieved from Wise.
ExpatDen. (2024). A Guide to the Cheapest Way to Send Money to Japan.
JobsInJapan. (2024). How to Send Money Home From Japan Using Wise.