FTA Member Company Spotlight: Brigit Carroll, Policy Lead at Wise

In our most recent edition of Fintech Explained, Brigit Carroll , Policy Lead for the Americas at Wise , speaks to the ways Wise serves both consumers and small businesses and the next steps needed for the U.S. to modernize the payments ecosystem.

1) Tell us about Wise. Why was the company founded, and how does it improve the ways people pay and get paid globally??

Wise started when our founders, Taavet and Kristo, realized how much money it cost to transfer money between the UK and Estonia. Taavet was based in London but was paid in Euros; Kristo worked in London but paid a mortgage in Europe in Euros. They each needed what the other had, so they figured out a fair way to exchange money between themselves, using the mid-market rate i.e. without the mark-up rate and fees charged by their banks. They saved thousands of pounds and realized there were millions of people across the world who had the same problem and needed a new solution.

Fast forward to today and Wise is a global technology company building the best way to move and manage money around the world. With the Wise Account and Wise Business, people and businesses are able to send, spend, hold and receive money in up to 40+ currencies. The average price of a transfer using Wise is 0.67% and we move money across borders instantly 61% of the time (that’s in less than 20 seconds). Our fees are completely transparent and we use the exchange rate you see on Google or Reuters with no hidden fees, so you know exactly what you’re sending, what you’re being charged and what the person you’re sending money to will receive.

At the heart of Wise is our mission to make moving money internationally fast, convenient, transparent and affordable. Unfortunately, this doesn’t just come down to us. In 2023, Americans lost $12.1 billion in foreign exchange transaction fees and $5.8 billion in hidden exchange rate markups.

2) Wise sits at the intersection of many actors in the financial services ecosystem. How does Wise partner with both banks and fintechs to best serve customers?

Consumers and small businesses have come to expect that all payments — whether domestic or international — are now instant. However, for both consumers and small businesses who need to send international payments, these remain slow and expensive.

That’s where Wise comes in. Alongside the products and services we offer consumers and small businesses, we also have built Wise Platform, which partners with banks, financial institutions and other major enterprises to leverage Wise’s technology and embed solutions that make sending, receiving, and managing money internationally easier than ever for their customers. Essentially, we’re able to bring the speed, transparency and global network of Wise to our partners, allowing for even more consumers and small businesses to have fast, easy, convenient and transparent international payments.

This is important as expectations around speed, transparency and convenience of international payments catch up to domestic payments. We’re nearing a tipping point on this in the US — and in some respects have already reached it — and that’s why we’re working with such great partners to innovate and bring forward new products that serve their customers and their changing needs.

3) The U.S. lags behind other nations when it comes to the speed of money movement. Can you explain the current policy landscape and the next steps for payments modernization?

There are a few key areas we need to focus on to improve payments for Americans: faster payments, broader access to the payment system, and open banking.

When it comes to faster payments, FedNow is a great step forward for real time payments in the US, but today there are limits to its full potential. Allowing regulated payment companies to directly access FedNow is important to getting the system up and running to its fullest potential, driving uptake across the industry. In order to support all Americans (including the 82% who use digital payments), the benefits of FedNow must be widely available via competitive, diverse providers (not only traditional banks). Additionally, FedNow has an opportunity to include cross-border payments, making this system faster, more convenient and more transparent for consumers who will benefit from lower costs and more provider options.

Direct access for regulated payment companies to the Federal Reserve payments scheme is also crucial for the US to catch up to other countries. Governments around the world have already moved towards expanded access to payments systems in the UK, EU, Canada, Japan, Singapore, Australia and Brazil. Faster payments systems around the world have made payments faster, but also cheaper by allowing payment companies — not only banks — to access them directly as well.

Finally, open banking is certainly one to watch as the CFPB takes more action here. If done right, open banking in the US means potential to make payments faster and lower costs for consumers. Under the options the CFPB is considering, consumers would be able to more easily and safely walk away from companies offering bad products and poor service and move towards companies competing for their business with alternate or innovative products and services.

4) People may not realize that Wise also serves small businesses. Can you tell us about that offering and the unique needs of businesses sending and receiving money abroad?

Yes, we also offer our services to small businesses through Wise Business, which operates similarly to our Wise Account but is designed specifically for small businesses to help them grow and scale globally.

Through Wise Business, business leaders are able to set up local account details in nine countries to easily pay teams located around the world and get paid from customers in 40+ currencies with no hidden fees or exchange rate markup. It’s also very simple to integrate Wise Business with other accounting software, like Xero, Quickbooks, FreeAgent and more, to save time on admin. Plus, we also offer business customers the option to opt-in and earn interest on USD (4.85% APY), GBP (3.22% APY) and EUR (2.29% APY) balances held with Wise. Those who opt-in are eligible for passthrough FDIC insurance up to $250,000 for all balances combined.

For small businesses, operating globally from day one is key to future success. They need to be able to manage vendors, employees and freelancers overseas, so guaranteed delivery amount and instant payments are crucial to their operations. With Wise Business we’re helping these businesses to cut the cost, complexity and hidden fees associated with international payments.

5) As we mark Women’s History Month, what’s your advice for women in the fintech industry?

First off, you don’t necessarily need to be a financial services expert to get into the fintech space. Before joining Wise, I had no financial services background. But I was truly passionate about the product, having used Wise to pay my student loans back home while living abroad, and I was curious to learn. So keep in mind: you can always learn about an industry.

Second, the financial services industry as a whole needs to become more inclusive for women and minorities in a systematic way. In parallel, you also need to push yourself to say ‘yes’ to growth opportunities, even if you feel like an imposter. Saying ‘yes’ is a virtuous cycle, and the opportunity you initially felt out of your depth doing the first time will lead to the next great challenge, and so on!

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