As anywhere else in the world, expats in Portugal are on the lookout for low-fee international money transfers. There are many remittance services, and Wise is one of the popular options. Depending on the particulars, however, it is worth knowing some alternatives to Wise transfers. In this article we compare the best international money transfer apps for expats, such as Wise vs Revolut or Profee, review fees charged on remittances in Portugal, and discuss why banks and traditional money transfer services are still in the game.
Before we start looking at the best alternatives to Wise in Portugal, let us briefly present the provider.
What is Wise?
The best international money transfers: what to consider
Alternatives to Wise in Portugal: an overview
What is Wise?
An international money transfer service, Wise has been on the market since 2011. Founded in the UK, it is regulated by the National Bank of Belgium in the EU. It is currently present in more than 160 destinations globally and operates around 40 currencies for remittance services, currency exchange, and investment options among others.
It claims to offer the best international money transfers by forgoing markup on currency exchange and using a large network of partner banks around the world, which helps it to reduce the fees. The price of sending money from Portugal with Wise starts at 0.68% of the amount, but some of the best alternatives to Wise transfers may cost less.
For payments in Portugal, Wise accepts debit and credit cards, wire transfers, and the iDEAL system – a rather limited range compared to other alternatives to Wise in the Portuguese market.
The best international money transfers: what to consider
When exploring international money transfer services for the best alternatives to Wise, much will depend on what kind of transfer you need to send.
Amount. Some services charge a fixed fee only, and some a commission on the sum transferred. Regular smaller transfers cost less with the latter. If you occasionally send larger amounts, then go for the former. Also, substantial sums are subject to additional scrutiny and potential limits, so do not expect it to be your usual instant low-fee international money transfer.
Speed. The delivery time will range from minutes to several working days depending on the money transfer service, payment method, destination, currencies involved, and so on. Some providers, including Wise, Remitly, and some banks, offer faster delivery for an additional fee. If banks are one of the alternatives to Wise transfers for you, remember they usually take the longest time to process a transaction.
Destination. The recipient’s location affects the overall cost of transfers and the delivery time. Moreover, some money transfer services may not even be available in the desired destination. Wise is present in over 160 countries, which is one of the reasons for its popularity. But there are alternatives to Wise with a similar coverage, and wire transfers can be sent to almost any bank globally.
Currency. Each provider has a certain set of currencies it works with and applies its own rates to transfers with currency conversion. The rate, in turn, may vary depending on the amount sent and other factors. Wise claims to apply mid-market rates but, for example, Profee, one of the best alternatives to Wise, employs a unique market monitoring system to ensure its rates are the most favourable at any given time.
And if you compare Wise vs Revolut exchange rates, remember that Revolut charges extra on larger amounts and on specific days/time.
Alternatives to Wise in Portugal: an overview
The Portuguese financial system is a part of the eurozone and regulated by the Banco de Portugal. For the best international money transfers the following are most common alternatives to Wise:
- Traditional banks
- Traditional remittance providers
- Online banks
- Online money transfer services
Traditional banks
With more than 150 banks operating in the country, there are plenty of alternatives to Wise transfers – if you are ready to pay higher fees and wait longer, of course, since transferring money via banks is notoriously expensive and much slower than via online international money transfer services.
The oldest and largest banking institution in Portugal is Caixa Geral de Depósitos (CGD), which is owned by the state. And while you cannot expect to send low-fee money transfers with it, it does have a dedicated service for those who move money between the UK and Portugal, offering free electronic GBP transfers of up to £10,000 per day.
Other major banks in Portugal include:
- Millennium BCP
- Santander Totta
- Banco Best
- BancoBIC
- Banco BPI
Sending money via a retail bank, expect to pay in the range of €20-€30 per transaction in fees only (and even more if you need fast delivery), which is much higher than those by Wise, Revolut, or Profee. The exchange rates may also not be the best.
There is, however, a certain type of remittance – SEPA transfers – for which banks might be one of the best alternatives to Wise.
SEPA transfers
The simplest international remittance transaction in Portugal is a Single Euro Payments Area (SEPA) transfer, processed in euros, usually as a bank transfer, across 41 participating countries (including the EEA, Moldova, Serbia, and some others). In Portugal, this alternative to Wise transfers is available through a relatively new service called ‘instant transfers’ (transferência imediata). The delivery time is only 10 seconds, and the limit is €100,000 (if not capped lower by the provider).
The fees vary depending on the bank. For example, CGD offers such low-fee instant money transfers for as little as €0.95 (online or mobile) and €4 (in person).
USEFUL TIP
In Portugal, a great alternative to a Wise transfer, if you're sending euros within the SEPA zone and already have a Portuguese bank account, is using the Multibanco ATM network. With over 11,000 ATMs across the country, Multibanco allows you to make SEPA bank transfers directly from your account, often without fees. While it doesn't support international cash-based transfers, it's a convenient option for euro-to-euro transfers within Europe. Plus, Multibanco ATMs offer a wide range of other services — from paying bills and taxes to buying tickets and topping up mobile phones.
Traditional money transfer services
Still-important players on the market, traditional remittance services such as Western Union or MoneyGram are available as an alternative to Wise transfers in Portugal. One can say they offer the best international money transfers if cash is involved, both on the sending side and as cash pickup – an option not common with online providers.
At the same time, the cost of such transfers is rather high. Western Union, for example, adds up to 6% markup on currency conversion plus charges a fixed fee depending on the amount and the time of delivery, as does MoneyGram.
Online banks
There are both international and local digital banks operating in Portugal. Revolut. One of the leading digital banks in Europe and best alternatives to Wise transfers, Revolut offers free transfers between its users in more than 200 countries, which is a major advantage when comparing Wise vs Revolut fees. There are no charges on currency conversion of up to €1,000 per month (or more, depending on the subscription tier). If evaluating Wise vs Revolut exchange rates for transfers made on weekends/holidays, however, keep in mind that Revolut adds a markup of about 1% to such transactions.
- Openbank. A subsidiary of the Spanish Grupo Santander, this digital bank offers standard and rather limited features. It can be a viable alternative to Wise for SEPA transfers performed as ‘instant transfers’.
- Moey! is the first fully Portuguese digital bank launched by Crédito Agrícola Group. Like Openbank, it only offers international money transfer services to SEPA countries.
- ActivoBank. One of Portugal’s digital banks, ActivoBank, has come up with an interesting solution. Instead of developing its own alternatives to Wise transfers, it was the first bank to partner with the money transfer service and now offers Wise remittances to its customers at no additional cost.
Explore more:
Online remittance services
For instant low-fee money transfers, there is a developed market of online alternatives to Wise in Portugal. A new generation of fintech remittance companies is on the rise there offering much lower rates and faster delivery times for international money transfers.
- Remitly
Considered by many to be among the best alternatives to Wise, Remitly is present in over 170 countries and operates in around 100 currencies. It also has an extensive cash pickup network of more than 460,000 locations globally. For some this makes it the best low-fee international money transfer provider, even if its rates are not the lowest on the market.
- LemFi
A good alternative to Wise transfers to Africa is LemFi, a Nigerian remittance app for expats focusing on the African market. It charges no commission on transfers to countries like Nigeria and offers deposits to M-Pesa, a popular Kenyan mobile wallet. The withdrawal charges, however, are vague, and its customer support limited.
- Profee — the choice of expats
An licensed online money transfer service, Profee is among the leading companies in Portugal for remittances to Brazil, India, Ghana, the UK, Pakistan, and dozens of other popular destinations globally. In addition to the market-beating exchange rates, it offers special promo rates, charges little to no fees, and operates a generous referral programme. If you need an easy-to-use, fast, and cost-efficient solution to send money abroad, check the web converter or download the Android/iOS app to make Profee your go-to remittance service.
