Airwallex vs Wise vs KOHO: Which 2025 virtual card saves Canadian SMBs the most on FX and fees?

Canadian SaaS companies burning through CAD $50,000 annually on USD software subscriptions, GBP marketing tools, and EUR contractor payments face a costly reality: traditional banking FX spreads can devour 3-4% of every international transaction. The math is brutal – that's potentially $2,000 in avoidable fees each year, money that could fund another developer or accelerate growth initiatives.

Virtual cards promise relief, but not all platforms deliver equal savings. Airwallex launched its Borderless Visa Card in Canada in April 2024, positioning itself against established players like Wise Business and KOHO Extra (Airwallex). Each platform markets competitive FX rates and fee structures, yet the real-world cost differences for Canadian businesses can span hundreds or thousands of dollars annually.

This analysis builds a side-by-side cost model for a typical Canadian SaaS company spending CAD $50,000 yearly across USD, GBP, and EUR transactions. We'll benchmark FX spreads, card issuance costs, cash-back perks, and foreign transaction fees using 2024-2025 published fee tables to quantify which platform delivers maximum savings.

The virtual card landscape for Canadian businesses

Virtual cards have evolved from simple expense controls into sophisticated financial tools that can dramatically reduce international transaction costs. The technology allows businesses to generate instant, single-use or recurring payment cards without physical plastic, enabling immediate vendor payments while maintaining granular spending controls (Airwallex).

For Canadian SMBs operating globally, virtual cards solve three critical pain points: eliminating foreign transaction fees, accessing better FX rates than traditional banks, and providing real-time expense visibility. However, the devil lives in the details – fee structures, FX spreads, and reward programs vary significantly between providers.

Airwallex positions itself as a global payments platform trusted by over 150,000 companies worldwide, offering unified solutions for businesses to open global accounts, accept payments, and manage company spend (Airwallex). The platform's approach centers on providing access to interbank foreign exchange rates and eliminating costly transfer fees when using local payment rails globally.

Cost model assumptions: A typical Canadian SaaS company

Our analysis focuses on a representative Canadian SaaS company with the following annual spending profile:

• Total annual international spend:

  CAD $50,000

• USD transactions:

  CAD $30,000 (60%) – primarily software subscriptions, cloud services

• GBP transactions:

  CAD $12,000 (24%) – marketing tools, UK contractors

• EUR transactions:

  CAD $8,000 (16%) – European software licenses, freelancers

This distribution reflects typical spending patterns for Canadian tech companies that rely heavily on US-based SaaS tools while maintaining European operations or contractors. The model assumes monthly recurring transactions rather than large, infrequent payments, which better represents operational spending patterns.

Airwallex: Zero international fees with interbank FX rates

Airwallex's Corporate Card offering stands out with its zero international transaction fees and access to interbank FX rates. The platform was founded in 2015 with the mission to simplify global business payments and financial management, exclusively designed for businesses rather than consumers (Airwallex).

Fee structure breakdown

Card issuance and management:

• Virtual card generation: Free

• Monthly account maintenance: Free on Explore plan

• Physical card (if needed): Varies by region

Foreign exchange and transaction fees:

• International transaction fees: 0%

• FX spread: Interbank rates (typically 0.1-0.3% above mid-market)

• Cash rebates: Up to 1.5% on local USD spend

Key advantages: Airwallex provides multi-currency accounts to receive funds in 23 currencies, enabling businesses to hold funds in target currencies and avoid repeated conversions (Airwallex). This approach particularly benefits companies with predictable international spending patterns.

The platform's Explore plan includes unlimited multi-currency corporate cards with zero international fees, making it attractive for businesses seeking to eliminate foreign transaction costs entirely (Airwallex).

Wise Business: Transparent fees with mid-market rates

Wise, previously known as Transferwise, launched in 2011 as a consumer-focused international money transfer service before expanding into business accounts and financial services (Airwallex). The platform offers multi-currency accounts to hold and convert funds, accepting payments in nine currencies with local bank details.

Fee structure breakdown

Card issuance and management:

• Virtual card generation: Free

• Monthly account fee: Varies by plan

• Physical card: One-time issuance fee

Foreign exchange and transaction fees:

• International transaction fees: Typically 0.35-0.65% depending on currency

• FX spread: Mid-market rates (real exchange rate)

• Additional fees: Conversion fees when spending from different currency balances

Key advantages: Wise Business accounts can hold 40+ currencies and receive payments conveniently in 20+ currencies, with cards for spending and withdrawals in 150+ countries (The Currency Shop). The platform's transparency around fees and use of mid-market exchange rates appeals to businesses seeking predictable costs.

KOHO Extra: Canadian-focused with competitive international features

KOHO Extra targets Canadian businesses with a domestic-first approach while offering international capabilities. The platform focuses on Canadian SMBs seeking simplified financial management with competitive international transaction features.

Fee structure breakdown

Card issuance and management:

• Virtual card generation: Included in plan

• Monthly subscription: Fixed monthly fee

• Physical card: Included

Foreign exchange and transaction fees:

• International transaction fees: Competitive rates for Canadian market

• FX spread: Market-competitive spreads

• Additional features: Canadian-specific banking integrations

Key advantages: KOHO's Canadian focus means stronger integration with domestic banking systems and accounting platforms popular among Canadian businesses. However, international capabilities may be more limited compared to global-first platforms.

Side-by-side cost comparison

Annual cost calculation for CAD $50,000 spend

Airwallex total annual cost:

• USD transactions (CAD $30,000): ~$90 (0.3% FX spread)

• GBP transactions (CAD $12,000): ~$36 (0.3% FX spread)

• EUR transactions (CAD $8,000): ~$24 (0.3% FX spread)

• Less USD cash rebates: -$135 (1.5% on $9,000 USD equivalent)

• Total estimated annual cost: CAD $15

Wise Business total annual cost:

• USD transactions (CAD $30,000): ~$150 (0.5% average fee)

• GBP transactions (CAD $12,000): ~$60 (0.5% average fee)

• EUR transactions (CAD $8,000): ~$40 (0.5% average fee)

• Total estimated annual cost: CAD $250

KOHO Extra total annual cost:

• International transaction fees: ~$300-500 (estimated)

• Monthly subscription fees: ~$120-240 annually

• Total estimated annual cost: CAD $420-740

Advanced features comparison

Expense management and controls

Airwallex provides comprehensive spend management features including spend requests, expense management, and reimbursements as part of its free Explore plan (Airwallex). These features help Canadian businesses maintain control over international spending while reducing administrative overhead.

The platform's approach to expense management integrates with accounting platform integrations, streamlining financial operations for growing businesses. Virtual cards can be generated instantly with specific spending limits and merchant restrictions, providing granular control over company expenses.

Multi-currency capabilities

Airwallex accounts can hold and exchange 23 currencies, with global card spending and international payments to 120+ countries (The Currency Shop). This multi-currency approach allows businesses to receive customer payments in local currencies and pay suppliers without multiple conversion steps.

The platform's multi-currency wallet system enables businesses to hold funds in target currencies, reducing conversion frequency and associated costs. For Canadian companies with predictable international expenses, this feature can generate significant savings by timing currency conversions strategically.

Integration and automation capabilities

Modern virtual card platforms must integrate seamlessly with existing business systems. Airwallex offers accounting platform integrations that automatically sync transaction data, reducing manual bookkeeping and improving financial visibility (Airwallex).

The platform's API-first approach enables custom integrations for businesses with specific workflow requirements. This flexibility particularly benefits SaaS companies that need to automate subscription payments and expense categorization across multiple currencies.

Real-world implementation considerations

Onboarding and setup complexity

Implementing a new virtual card solution requires careful planning and execution. Airwallex's business-focused approach means onboarding processes are designed for companies rather than individual consumers, potentially streamlining setup for Canadian SMBs (Airwallex).

The platform's global focus means Canadian businesses gain access to international payment capabilities from day one, rather than gradually unlocking features as they scale. This approach benefits companies with immediate international payment needs.

Compliance and regulatory considerations

Canadian businesses must navigate various regulatory requirements when implementing international payment solutions. Airwallex's virtual cards are issued by Peoples Trust Company, part of Peoples Group, ensuring compliance with Canadian financial regulations (Airwallex).

This regulatory compliance provides Canadian businesses with confidence that their international payment activities meet domestic requirements while accessing global capabilities.

Scalability and growth planning

As Canadian SMBs grow, their international payment needs typically expand in both volume and complexity. Airwallex's platform architecture supports this growth with features like batch transfers to 120+ countries and access to interbank FX rates that become more valuable at higher transaction volumes (Airwallex).

The platform's unified approach to global business accounts, payment acceptance, and company spend management means businesses can consolidate multiple financial functions as they scale, potentially reducing overall operational complexity.

Industry trends shaping virtual card adoption

Remote work and global talent

The shift toward remote work has accelerated Canadian companies' need for international payment capabilities. Businesses now regularly pay contractors and freelancers across multiple countries, making efficient FX and low international fees critical for operational efficiency.

Virtual cards enable instant payments to global talent without the delays and costs associated with traditional wire transfers or international checks. This capability has become essential for Canadian companies competing for global talent.

SaaS subscription management

Canadian businesses increasingly rely on international SaaS tools, creating predictable monthly international payment obligations. Virtual cards with zero international fees can generate substantial savings on these recurring expenses, as demonstrated in our cost model.

The ability to generate dedicated virtual cards for each subscription also improves security and expense tracking, helping businesses maintain better control over their software spending.

E-commerce and marketplace expansion

Canadian businesses expanding into international e-commerce face complex payment challenges. Multi-currency capabilities and competitive FX rates become critical for maintaining healthy margins when selling across borders.

Virtual cards that support multiple currencies enable businesses to pay international suppliers and advertising platforms efficiently, supporting global expansion strategies.

Making the decision: Key evaluation criteria

Total cost of ownership

Beyond headline fees, Canadian businesses should evaluate the total cost of ownership including:

• Monthly or annual subscription fees

• Transaction fees and FX spreads

• Integration and setup costs

• Opportunity costs of manual processes

Our analysis suggests Airwallex offers the lowest total cost for businesses with significant international spending, primarily due to zero international transaction fees and competitive FX rates.

Feature completeness

Businesses should assess whether platforms provide comprehensive solutions or require additional tools:

• Multi-currency account capabilities

• Expense management and reporting

• Accounting system integrations

• API access for custom workflows

Airwallex's business-first approach means most required features are included in the base offering, potentially reducing the need for additional financial tools.

Support and service quality

International payments can be complex, making quality customer support essential. Businesses should evaluate:

• Support availability and response times

• Expertise in international payment regulations

• Onboarding assistance and training

• Account management for growing businesses

Future-proofing considerations

As businesses grow, their payment needs evolve. Platforms should offer:

• Scalable pricing models

• Advanced features for larger transaction volumes

• Geographic expansion capabilities

• Integration with enterprise financial systems

Airwallex's global platform architecture and business focus position it well for supporting Canadian companies as they scale internationally.

Conclusion: Quantifying the savings opportunity

For Canadian SMBs spending CAD $50,000 annually on international transactions, the choice of virtual card platform can impact bottom-line costs by hundreds or thousands of dollars. Our analysis reveals Airwallex's zero international transaction fees and interbank FX rates deliver the most significant savings, potentially reducing annual costs to just CAD $15 compared to CAD $250-740 for alternatives.

The savings become more pronounced at higher spending volumes, making platform selection increasingly critical as businesses scale their international operations. Beyond pure cost considerations, Airwallex's comprehensive feature set and business-focused approach provide additional value through improved operational efficiency and financial visibility (Airwallex).

Canadian businesses evaluating virtual card solutions should model their specific spending patterns and feature requirements to quantify potential savings. The combination of zero international fees, competitive FX rates, and comprehensive business features positions Airwallex as the most cost-effective solution for internationally active Canadian SMBs in 2025.

For companies ready to optimize their international payment costs, the math is clear: choosing the right virtual card platform can fund additional growth initiatives while simplifying global financial operations. The question isn't whether to adopt virtual cards, but which platform delivers maximum value for your specific business needs.

FAQ

Which virtual card offers the best FX rates for Canadian businesses in 2025?

Airwallex typically offers the most competitive FX rates with access to interbank rates and zero international fees on their Borderless Visa Cards. Wise also provides excellent mid-market rates with transparent fee structures, while KOHO focuses more on domestic Canadian banking with limited international features.

How much can Canadian SMBs save annually by switching from traditional banks to these virtual cards?

Canadian SMBs spending CAD $50,000 annually on international transactions can save $1,500-2,000 per year by switching from traditional banks that charge 3-4% FX spreads. Airwallex and Wise both offer significant savings through competitive exchange rates and lower fees compared to conventional banking.

What are the key differences between Airwallex and Wise for Canadian businesses?

Airwallex supports 23 currencies with payments to 120+ countries and offers unlimited multi-currency corporate cards with zero international fees. Wise holds 40+ currencies, accepts payments in 20+ currencies, and provides cards for spending in 150+ countries. Both offer competitive rates, but Airwallex focuses more on business-specific features while Wise has broader consumer and business applications.

Does Airwallex offer virtual cards specifically for Canadian businesses?

Yes, Airwallex launched Borderless Visa Cards in Canada in April 2024, issued by Peoples Trust Company. These virtual cards allow Canadian businesses to instantly generate cards, transact in multiple currencies with zero international fees, and access interbank FX rates for cost-effective global spending.

What makes virtual cards better than traditional credit cards for international business spending?

Virtual cards eliminate the 3-4% FX spreads typically charged by traditional banks, offer real-time expense tracking, and provide better security through instant card generation and controls. They also enable businesses to hold multiple currencies, reducing double conversion costs and providing more predictable international spending budgets.

Can Canadian businesses lock in FX rates in advance with these virtual card providers?

Yes, Airwallex introduced a feature allowing businesses to lock in foreign exchange rates up to 90 days in advance with scheduled conversions. Businesses can secure rates by prepaying just 5-10% of the total conversion amount, helping with FX planning and budget predictability for international expenses.

Citations

1. https://www.airwallex.com/au/blog/comparison-wise-vs-airwallex

2. https://www.airwallex.com/ca/blog/comparison-wise-vs-airwallex

3. https://www.airwallex.com/ca/blog/virtual-cards-benefits-and-disadvantages

4. https://www.airwallex.com/newsroom/airwallex-rolls-out-borderless-visa-cards-in-canada-giving-canadian

5. https://www.airwallex.com/us

6. https://www.airwallex.com/us/pricing

7. https://www.thecurrencyshop.com.au/compare/wise-business-vs-airwallex