TransferWise vs Trustly: What are the differences?

Introduction

In this article, we will discuss the key differences between TransferWise and Trustly, two popular online payment services. Both TransferWise and Trustly offer convenient and secure ways to transfer money, but there are several distinct features that set them apart. Let's take a closer look:

1. International Transfers: TransferWise specializes in international money transfers, allowing users to send money across different currencies with low fees and competitive exchange rates. Trustly, on the other hand, primarily focuses on domestic transfers within Europe, providing fast and convenient payments within the European Union.

2. Transfer Methods: TransferWise enables users to transfer money via bank transfer or debit/credit card payment. The platform facilitates direct transfers from the sender's bank account to the recipient's account, ensuring transparency and security. In contrast, Trustly allows users to make payments directly from their online banking accounts, eliminating the need for additional cards or accounts.

3. Service Availability: TransferWise is available worldwide, supporting over 70 countries and numerous currencies. Users can send money to and from most major countries, making it a suitable choice for global transactions. In comparison, Trustly operates mainly in Europe, with coverage varying from country to country. It is widely used and accepted across many European banks and merchants.

4. Transaction Speed: TransferWise offers relatively fast transfers, with most transactions taking one to two business days to complete. The exact speed may depend on the destination country and the recipient's bank. Trustly provides instant payments within its network, allowing users to make real-time transactions without delays. However, transfers involving external banks may take longer.

5. Fees and Exchange Rates: TransferWise prides itself on providing transparent and low-cost transfers. They charge a nominal fee for each transaction and offer mid-market exchange rates, which are considered highly competitive. Trustly, on the other hand, generally does not charge customer fees. Instead, they collect their revenue by partnering with merchants and receiving a percentage of each transaction.

6. Use Cases: TransferWise is commonly used for personal and business transactions, allowing individuals and companies to send money abroad or receive payments from overseas. It serves as an efficient solution for freelancers, expatriates, and international businesses with a need for cross-border payments. Trustly is primarily used for e-commerce transactions, enabling seamless online payments between buyers and sellers. It is integrated with various online merchants and serves as a preferred payment method for many European consumers.

In summary, TransferWise specializes in international transfers, offers various transfer methods, has global service availability, provides fast transfers with competitive rates, charges low fees, and is suitable for personal and business use cases. Trustly primarily focuses on domestic transfers within Europe, allows direct transfers from online banking accounts, has limited service availability, provides instant payments within its network, generally does not charge customer fees, and is commonly used for e-commerce transactions.