Wise Vs Revolut – Forbes Advisor UK

There’s a whole raft of companies offering money transfer services with competitive exchange rates and low fees – and both Wise and Revolut are popular choices in this market. But which one is right for you will depend on how you plan to use it. Here’s how the two competitors stack up.

Wise and Revolut at a glance

When deciding between Wise and Revolut for money transfer it’s important to note that both are valid options that rank well in our independent analysis of their service.

Wise was rebranded from Transferwise, a company that has operated in the currency transfer market for around a decade. Wise offers app-based and online accounts (including a debit card) for personal and business customers.

Revolut launched in 2015 starting out by offering a prepaid card and app-only payments service. It has expanded rapidly and now offers a range of payment and banking services which suit ‘global lifestyles’.

Revolut and Wise are both authorised by the Financial Conduct Authority under electronic money regulations. But because neither company is a regulated bank in the UK it means customers’ money is not protected by the Financial Services Compensation Scheme.

How do Wise and Revolut compare on price?

• Wise customers always get the exact mid-market rate on currency exchange transactions, so Wise makes its money back through its fees. 

The fee charged will depend on the specific currency transaction, but it ranges from 0.15% to 2%. Wise offers an online calculator so customers can see how much they’ll be charged for their currency transfer before they go ahead.

• Revolut has different charges for business and personal customers and charges also vary depending on the size of your transaction. 

Revolut publishes a list of its fees online and on the app. For example, currency exchange is fee-free on weekdays, subject to maximum limits. Instead of charging a fee Revolut is making its money back through a less competitive exchange rate. 

Revolut uses the interbank exchange rate, which tends to be less competitive than the mid-market rate used by Wise. 

Transfers with Revolut at the weekend or on UK bank holidays are charged at 1%. Plus if you make total payments of more than £1,000 per month there will be a 0.5% ‘fair usage fee’. This is if you are on the free Revolut account. Revolut offers premium accounts with a monthly fee that offer higher limits for fee-free transactions.

While Wise can facilitate foreign exchange transactions in 40 currencies and operates in 160 countries, Revolut works with 29 currencies, according to their respective websites. 

Wise vs Revolut: Summary of services and pricing

Which is faster for money transfer, Wise or Revolut?

Wise: the speed of your currency transfer will depend on a range of factors including how you pay (debit and credit card is fastest) and the type of transfer you choose, where you’re sending the cash and the currency. Wise has three transfer speed options at different prices with the ‘fast and easy transfer’ costing the most:

• Advanced transfer – funds arrive within one to three working days
• Low cost transfer – funds arrive within three to 24 hours
• Fast and easy transfer – funds arrive within 3 to 5 hours

As an example, to send £1,000 euros to a recipient in France, paying with your debit card, with the cash to arrive within three to five hours will cost £4.49.

Revolut: the standard time for international currency transfers is one to two working days, depending on the nature of the transaction and the receiving bank. Some transfers can take up to five days, for example. Faster transfer times are available to customers with ‘premium’ or monthly-fee accounts with Revolut, such as the Premium account.

Other services

While Wise has stuck with currency exchange as its core focus, Revolut can offer customers a wide range of extra services, particularly those who opt for one of its paid-for accounts, such as the Premium or Metal accounts, for example.

Even with Revolut’s Standard account customers can access budgeting tools to help with saving and spending and splitting bills. Transferring cash between Revolut accounts in the UK is free. 

Some accounts offer cashback on certain types of spending as well as retail discounts and the premium accounts come with free winter sports insurance, cover for lost, stolen or delayed baggage when you travel and personal liability cover.

Revolut also offers a savings account paying a competitive rate of interest and cryptocurrency exchange and commodities investments.

Customer ratings

Both money transfer companies are regarded highly by their users. Wise gets 4.3 out of 5 on Trustpilot from more than 192,000 reviews. Revolut has the same rating from 135,000 reviews. 

One happy Revolut customer writes on Trustpilot: “On a recent holiday with two friends we all used Revolut to split and share bills as we went, settling up every few days. This facility on the app was invaluable to the peacefulness and smooth running of our holiday, one that we will use on all future group trips no matter the currency.”

And a Wise user says: “Wise is one of the best, easy and user-friendly apps to send money to any country in the world. Fast, cheap and easy.”

Conclusion: Wise vs Revolut – which is best for you?

Which currency transfer service is best for you will depend on what you want from the account and how you plan to use it.

For fast, low cost currency exchange the Wise account is straightforward with a transparent fee structure and mid-market exchange rates.

But for added services Revolut could offer customers more, particularly for regular travellers who want fee-free spending overseas, insurance for baggage when on holiday and discounts on airport lounge access (some offers are only available with Revolut’s premium accounts).