2024 Comparison of Money Transfer Platforms: Wise vs UK Banks and Fintechs
When it comes to transferring money abroad, whether for travel, purchases, or supporting family, the costs can vary significantly depending on the platform you use. In this 2024 comparison, we take an in-depth look at the leading money transfer platforms: Wise, traditional UK banks, and fintechs such as Revolut, Monzo, and Starling. Our goal is to help you find out which service will save you the most money.
Research Methodology
This comparison is based on independent research conducted over five days in July 2024. The research simulated real transactions using live accounts across Wise, UK banks (including Barclays, HSBC, Lloyds, and RBS), and popular fintechs like Monzo, Starling, Revolut, PayPal, Xoom, Western Union, and Post Office. The analysis considered different scenarios, such as sending £250 internationally, spending it abroad, and withdrawing it via an ATM. The comparison covered four key currencies: AUD, EUR, INR, and USD.
Sending £250 Internationally: Wise is Up to 7x Cheaper
Wise consistently emerges as the most affordable option when sending £250 abroad. Compared to traditional banks, Wise is up to 7x cheaper for GBP to AUD transfers and 4x cheaper for GBP to USD. Here's a quick snapshot of costs for sending £250:
GBP to AUD:
Wise: £1.35
Barclays: £6.86
HSBC: £14.31
Monzo: £1.35
PayPal: £13.74
Western Union: £4.35
GBP to EUR:
Wise: £1.35
Barclays: £7.48
Monzo, Revolut: £0.00
GBP to INR:
Wise: £1.35
Barclays: £7.48
Lloyds: £7.98
Revolut: £0.00
GBP to USD:
Wise: £1.35
HSBC: £6.88
Lloyds: £7.98
Starling: £1.34
Spending £250 Abroad with a Debit Card
If you're planning to spend abroad using your debit card, Wise is once again among the cheapest options. For GBP to AUD transactions, Wise costs only £1.03, while traditional banks like Barclays and HSBC charge £7.48 or more. The fintech competitors Monzo, Revolut, and Starling charge £0 for similar transactions, making them a competitive choice as well.
GBP to AUD:
Wise: £1.35
Barclays: £7.48
Monzo, Revolut, Starling: £0.00
GBP to EUR:
Wise: £1.35
Barclays: £7.48
Revolut, Starling: £0.00
Withdrawing £250 Abroad via ATM
When withdrawing £250 from an ATM abroad, Wise remains up to 3x cheaper than most traditional banks. For example, Wise charges just £1.90 for GBP to AUD withdrawals, while Barclays charges £7.48. Revolut offers an even more affordable option at £1.00, while Starling provides free ATM withdrawals abroad.
GBP to AUD:
Wise: £1.35
Barclays: £7.48
Monzo: £7.50
Revolut: £0.00
The Verdict
For international money transfers, spending, and withdrawing abroad, Wise generally offers the most cost-effective solution among the traditional banks and most fintech competitors. However, some digital banks like Revolut and Starling also provide competitive rates, particularly for spending and ATM withdrawals.
Wise's transparent fee structure, use of the mid-market exchange rate, and low fixed fees make it a standout choice for those looking to save on international transactions. On the other hand, if you prioritize convenience and a broader set of banking features, some fintechs like Monzo and Starling may also meet your needs effectively.
Final Recommendation
Choose Wise for the lowest fees across most scenarios, but consider fintechs like Revolut or Starling if you value flexibility and zero fees for spending and ATM withdrawals.
Which platform do you prefer using for international transactions? Share your thoughts and experiences in the comments below!