Introduction
At Salt, we understand how complicated managing international payments can be for a business owner. With so many options available for cross border transfers, comparing and choosing the service that best suits your needs is important.
In today's interconnected world, the need for efficient and cost-effective cross border transfers has become increased by leaps and bounds. With the rise of globalisation, businesses and individuals are seeking reliable platforms to facilitate inward remittance and simplify international payments.
In this blog post, we will compare Salt and Wise, two fintech services that can help you with business-related cross border transfers, so you can pick whichever suits your requirements best!
Salt Or Wise: Which Is The Wiser Choice For Your International Payments?
Before we dive into the comparison, let's briefly discuss what Wise is. Wise is an online platform that allows individuals and businesses to send and receive money across borders. It was founded in 2010 to make international money transfers cheaper, faster, and more transparent. Wise uses a peer-to-peer model that matches users who want to convert their money with those with the opposite currency needs. This approach helps eliminate traditional banking fees and provides competitive exchange rates.
Salt vs. Wise: a comprehensive comparison
Now, without further ado, let’s delve into the comparison of Salt and Wise.
Fee Structure: Salt vs. Wise
One of the key factors to consider when comparing Salt Fintech and Wise is their conversion fees. Both platforms offer competitive rates, but the fee structure varies.
Salt Fintech: No Markup, Flat Rate
At Salt, our approach to cross border transfers is simple and transparent. We do not charge any markup over the conversion rate. Additionally, Salt has a flat rate of 1.75%, inclusive of GST and regardless of the currency pair. This simplicity can be a significant advantage, especially for those who value transparency and want to avoid any surprises regarding fees. This level of transparency can save you both time and money, especially when dealing with complex international money transfers.
Furthermore, Salt goes the extra mile by providing invoices for the fees deducted if requested by the client. This level of transparency can be invaluable for businesses that require detailed financial records and want to maintain a clear overview of their expenses.
Wise: Variable Conversion Fees
On the other hand, Wise takes a different approach to conversion fees. Their fees vary depending on the currency pair involved. While this can be advantageous for some users, it also means that you need to be mindful of the fees for specific currency conversions. This variability may complicate your financial calculations if you frequently deal with various currencies.
eFIRC: Salt vs. Wise
Salt: Free eFIRC
Salt provides eFIRC (Electronic Foreign Inward Remittance Certificate) at no extra charge. This certificate is required for Indian businesses wherever inward remittances are involved in their business processes, and Salt users can save on this additional fee, making it a more cost-effective choice.
Wise: eFIRC Fee Deducted
On the other hand, Wise charges a fee for eFIRC issuance. This additional cost should be considered when comparing the total expenses associated with your cross border transfers.
Settlement Process: Salt vs. Wise
Salt: Automated INR Settlement
Salt offers an automated process for converting and settling cross border transfers in Indian Rupees (INR). This automation can streamline your workflow and save you time, as you don't have to initiate the settlement process manually. If you frequently deal with INR transactions, this feature can provide a significant advantage in terms of convenience and efficiency.
Wise: No Automated Settlement
On the other hand, Wise does not specifically mention an automated settlement process for INR. While they provide a user-friendly platform for currency conversions, the lack of explicit automation for INR settlements may require manual intervention and potentially add an extra step to your workflow.
Conclusion
At Salt Fintech, we aim to make all cross border transfers and inward remittances smoother for your business. Our support for foreign currencies from over six countries allows us to accomplish this ease for you, and our virtual local accounts ensure that you get your international payments in INR as soon as they are received.
While Wise may be the better choice for your business’s international money transfers in specific occasion, Salt Fintech's advantages in transparency, additional services, and convenience are definitely worth considering!
Frequently Asked Questions (FAQs)
1. Are the conversion fees charged by Salt and Wise comparable?
While Salt and Wise offer competitive rates, their fee structures differ. Salt does not charge any markup and has a flat rate of 1.75%, including GST, for all currency pairs. Wise, on the other hand, has variable conversion fees depending on the currency pair involved.
2. What is eFIRC, and why is it important?
eFIRC stands for Electronic Foreign Inward Remittance Certificate. It is a certificate often required for businesses receiving inward remittances. Salt Fintech provides eFIRC at no extra charge, whereas Wise charges a fee for its issuance.
3. Does Salt provide invoices for fees deducted?
Salt Fintech provides invoices for the fees deducted if requested by the client. This level of transparency can be valuable for businesses that require detailed financial records.
4. Does Wise offer an automated settlement process for INR?
Wise does not specifically mention an automated settlement process for INR. Checking with Wise directly for further details on their settlement processes is advisable.
