Parallel factor analysis (PARAFAC) is one of the most popular methods for evaluating multi-way data sets, such as those typically acquired by hyphenated measurement techniques. One of the reasons for PARAFAC popularity is the ability to extract directly interpretable chemometric models with little a priori information and the capability to handle unknown interferents and missing values. However, PARAFAC requires long computation times that often prohibit sufficiently fast analyses for applications such as online sensing. An additional challenge faced by PARAFAC users is the handling and storage of very large, high-dimensional data sets. Accelerating computations and reducing storage requirements in multi-way analyses are the topics of this manuscript. This study introduces a data pre-processing method based on multi-dimensional wavelet transforms (WTs), which enables highly efficient data compression applied prior to data evaluation. Because multidimensional WTs are linear, the intrinsic underlying linear data construction is preserved in the wavelet domain. In almost all studied examples, computation times for analyzing the much smaller, compressed data sets could be reduced so much that the additional effort for wavelet compression was more than recompensated. For 3-way and 4-way synthetic and experimental data sets, acceleration factors up to 50 have been achieved; these data sets could be compressed down to a few per cent of the original size. Despite the high compression, accurate and interpretable models were derived, which are in good agreement with conventionally determined PARAFAC models. This study also found that the wavelet type used for compression is an important factor determining acceleration factors, data compression ratios and model quality.