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Wise for Stripe Payouts: A Guide to Faster, Cheaper Transfers

If you use Stripe to accept payments from customers around the world, you're familiar with the payout process. But are you losing money when those payouts are converted to your home currency? For US-based businesses, freelancers, and e-commerce stores, connecting a Wise account to Stripe is a powerful strategy to receive international funds faster and save a significant amount on currency conversion fees.

The Short Answer: Yes, You Should Connect Wise to Stripe

Using Wise as your payout account for international Stripe transactions is a smart financial move. It allows you to receive foreign currencies (like EUR or GBP) into a matching Wise currency account, completely avoiding the poor exchange rates and fees your traditional bank would charge. This gives you full control over when and how your money is converted to USD.

The Problem: Forced Currency Conversion on Payouts

Stripe is excellent at processing payments in multiple currencies. The problem occurs during the payout. Let's say your US-based business makes a sale in Europe and has a €1,000 balance in your Stripe account.

When you initiate a payout to your traditional US bank account (e.g., Chase, Bank of America), Stripe converts the €1,000 to USD. Stripe itself charges a currency conversion fee for this, and your bank might also use an unfavorable exchange rate. You lose money before it even hits your account.

The Wise Solution: Receive Currencies Like a Local

Wise solves this by giving you local bank details for over 10 different currencies. When you open a EUR balance in Wise, you get a unique IBAN number that functions just like a German or French bank account. You can add these details directly to your Stripe dashboard.

Now, when you have a €1,000 balance in Stripe, you can choose to pay it out to your Wise EUR account. The transfer happens as a local SEPA payment—fast and free. The €1,000 arrives in your Wise account intact. You have successfully bypassed the forced conversion and can now convert the money to USD at your leisure using Wise's superior mid-market rate.

Take control of your global revenue. Stop losing money on payouts.

Set Up Your Wise Business Account →

Your 4-Step Workflow for Connecting Stripe and Wise

  1. Open a Wise Business Account & Currency Balances

    If you don't have one, sign up for a Wise Business account. Inside your account, open balances for the primary currencies your customers pay in (e.g., USD, EUR, GBP, CAD).

  2. Get Your Local Bank Details from Wise

    Click on your new EUR balance and select "Account details." Wise will display your unique IBAN and SWIFT/BIC code. Do the same for your other currency balances to get their respective local details.

  3. Add Wise as a Payout Account in Stripe

    Log in to your Stripe dashboard. Go to Settings > Business Settings > External Payout Accounts and Currencies. Click "Add Bank Account" and enter the local bank details you got from Wise. For example, add your Wise IBAN to accept EUR payouts. You can add multiple Wise accounts for different currencies.

  4. Initiate Payouts from Stripe to Wise

    Once your Wise account is verified in Stripe, you can select it as the destination for your payouts. Send your EUR balance to your Wise EUR account, your GBP balance to your Wise GBP account, and so on. The funds will arrive quickly without any conversion fees.

Frequently Asked Questions

Does this work for Shopify Payments?

Yes, this strategy works perfectly for Shopify Payments, as it is powered by Stripe. You can follow the same steps by adding your Wise bank details in the Shopify Payments payout settings.

Is this allowed by Stripe's terms of service?

Yes. Using a borderless financial service like Wise is a fully compliant and common practice for global businesses using Stripe. Wise provides real bank account details that function just like a traditional bank for the purpose of receiving payouts.

What are the main benefits of this workflow?

There are two huge benefits: 1) You save 2-3% on every international payout by avoiding your bank's poor exchange rates. 2) You can hold foreign currency balances in Wise to pay international suppliers or contractors, avoiding conversion fees entirely.

Conclusion: A Must-Have for Global Stripe Users

For any business or freelancer using Stripe to operate internationally, connecting a Wise account is a critical optimization step. It directly addresses the most significant pain point in the payout process: costly and inefficient currency conversion. By taking a few minutes to set up this workflow, you can save a substantial amount of money, gain more control over your cash flow, and run a more efficient global operation.

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