Transferwise (now Wise) vs Tazapay for Business Transactions

Tazapay
Aug 5, 2021
3 minutes of read

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Since globalization accelerated in the late 1990s, the volume of international trade has grown exponentially over the past two decades. With increasing globalization, companies' need to cooperate with their international partners and customers is also growing. An important component of this is to ensure that money transfers flow seamlessly from one country to another.

Historically, banks have monopolized the international payments and money transfers market, charging high transaction fees and slow processing times for cross-border transactions. Moreover, banks and other major financial corporations have mostly developed products catering to the business transaction needs of only large corporations. This has left SMEs in the void, with a lack of high trust, low-cost solutions catering to their needs.

Enter Tazapay and Transferwise, which has stepped in with money transfer services to save companies time and costs while providing complete transparency and transaction security. But, when it comes to business transactions, both Tazapay and Transferwise have slightly different offerings. So, how can businesses differentiate between the two, and what makes Tazapay the better option?

What are Transferwise & Tazapay?

Transferwise is essentially a money transfer service that helps people and businesses manage their money internationally cheaply, transparently, and swiftly. For individuals, Transferwise offers services like sending and receiving money abroad without hidden charges, 2-factor authentication to protect accounts and transfers, data protection, and anti-fraud. For businesses, Transferwise provides international services like cheaper invoice payments, multi-currency banking, employee payments, cash management, business debit cards, money transfers, etc.

On the other hand, Tazapay is a fully digital escrow service for B2B transactions and payments internationally. It enables businesses to keep money secure for vendors, sellers, and businesses till goods are shipped and all parties fulfil business conditions. The customer funds in escrow are safeguarded by an institution licensed and regulated by the Monetary Authority of Singapore.

Additionally, Tazapay also has a repertoire of business-centric solutions such as secure payments for B2B platforms/marketplaces, instant trade partner verifications, and guidance on country-specific import/export requirements.

Solutions for the most pertinent business transaction issues

Next, we take the most common pain points that businesses face regarding transactions and compare how Tazapay holds an edge.

For businesses, dealing with procedures, documents, licenses, etc., related to import/export in different countries is often a nuisance for business transactions. Tazapay simplifies it for businesses and makes them manage transactions with ease – something not offered by Transferwise.

Trade partner verification

Establishing trust with foreign business partners and vendors is key to successful cross-border trade. Performing due diligence and background checks are therefore important before engaging in transactions. Unlike Transferwise, Tazapay has a comprehensive instant online business verification facility covering 60+ countries and millions of companies, making the process seamless for businesses.

Protecting digital payments

Most importantly, businesses have expressed difficulties in protecting their payments and protecting against cancellation/delayed shipment. Furthermore, they face difficulties regarding legal compliance and preventing fraud when engaged in cross-border trade. As a result, many businesses turn to third-party escrow services due to challenges in applying for facilities like a revocable letter of credit and the general lack of trust in such guarantees. This is where Tazapay’s digital escrow service acts as the neutral third party, ensuring both parties are obliged to meet the contract terms before releasing any payment. In addition, it is 100% safe, seamless, requires verification before release, is transparent, and eliminates the risk for both buyers and sellers.

Conclusion

At the end of the day, it all boils down to which service offers the most relevant solutions to businesses and SMEs. The global e-commerce boom and remittance digitization has led to retail consumers increasingly engaging in cross-border payments. This is where Transferwise has price-driven offerings for businesses. However, SMEs and their primary business transaction needs are largely different from retail consumers – a space where Tazapay excels.

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B2B Payment

Transferwise (now Wise) vs Tazapay for Business Transactions

Aug 5, 2021
3 min of read