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Both Monzo and Wise are UK-based financial services dedicated to breaking the mould in their respective fields, by providing innovative solutions for consumers around the world.
Founded in 2015, Monzo is an app-based challenger bank which operates entirely online and is designed to be quicker and more convenient than traditional banking. Over the last six years, Monzo has been constantly developing their offerings, keeping up with the fast-paced evolution of the FinTech industry. As a result, the company has expanded into an FCA approved bank that boasts a wide range of UK accounts as well as loans and overdrafts.
Wise, formerly known as Transferwise, was set up in 2011 to cater to customers who were tired of being charged high fees and unfavourable exchange rates whenever they sent money overseas. To solve this problem, founders Kristo Käärmann and Taavet Hinrikus decided to start their own business that would offer fast and fair cross-border money transfers to rival the extortionate cost of a traditional international bank transfer.
The company manages to stay ahead of the curve through their mid-market rates and guaranteed transparency of currency conversions and transfer fees. With bank accounts across the globe, Wise specialises in moving money seamlessly between international users, offering excellent rates for exotic currencies and serving over 10 million customers.
In 2018, Monzo teamed up with Wise to provide low-cost, easy to use international money transfers to their customers. We want to find out not only which brand is benefiting most from this partnership, but also who our customers should be trusting to transfer their hard-earned money abroad.
Wise vs Monzo comparison - Cost
The lower the fees, the more money reaches the payee; so it is very important to understand the full fee structure of any remittance service before sending funds overseas.
Cost
As Monzo's international money transfers are handled by Wise, both providers charge the same fees and rates.
The transfer options with Monzo include a low cost, advanced, or fast transfer.
Generally speaking, transfer fees do not amount to more than 0.35 – 0.65% of the transfer. For money transfers up to £500 or equivalent, Wise fees are reasonably low. However, keep in mind the higher the transfer amount, the higher the fees.
It is possible to review the transfer fees in full, using the Monzo app, before initiating payment.
Wise stays true to its word, by providing customers as close to the mid-market rate as possible, but this means the company relies on transfer fees to turn a profit.
These fees vary depending on the currency pairing. Additional charges include debit and credit card fees; these can range from 0.15% - 2% on top of the transfer amount.
Wise has a useful pricing tool which allows customers to calculate the transfer fees, ensuring total transparency, before initiating payment.
Speed - Monzo and Wise transfer at the same speed
Transfer speed can be the primary concern for many customers who are sending money online and it is an important factor to consider for any time sensitive transactions.
Both Monzo and Wise offer fast transfer speeds. As Monzo uses Wise for international transfers, their speed will usually be the same.
Domestic transfers sent from one Monzo account holder to another are instant. International transfers are sometimes instant, but can take up to three working days to arrive with the recipient.
Moving money between Wise accounts based in the same country can be processed instantly by either party.
International money transfers sent from a bank account in one country to an account holder in another country are processed in three stages: receiving, converting and delivering. Quicker transfer speeds are available to those using a debit or credit card as payment, albeit with a higher fees attached.
Monzo vs Wise -Transfer limits
Both providers have the same transfer limit of $1,200,000, when sent by wire transfer. Limits are smaller for other payment methods, and depend on where you're sending the money.
Some countries set their own international transfer limits. Take a look at our article to find out more.
Wise vs Monzo - Product offering
Many service providers claim to cater to a global market and we want to identify exactly how many locations are covered by Monzo and Wise.
Wise customers are able to send and receive over 50 currencies, send to 60 countries and request money from over 30. Monzo, as it uses Wise for international transfers, covers the same number.
Both providers allow the following transfer types:
Fast and easy transfer: the quickest way to send money overseas, paid for using debit or credit card, or a digital wallet like Google Pay. Albeit fast, this option is the most expensive.
Low-cost transfer: this cost-effective option and is ideal for customers prioritizing price over speed. This type takes the longest, due to payment via bank transfer.
Advanced transfer: this type of international money transfer utilizes the SWIFT network, which typically incurs a fee.
The payment options available with Wise are:
Credit card
Debit card
ACH direct debit
Bank transfer
Ease of use
Wise is the easier provider to use, with its streamlined app and simple sign up process.
While both providers have a relatively simple user interface, Wise has the edge, allowing you to send money from a multi-currency account in just a few clicks. You can easily see how much money you have in your account and process transfers with ease.
The range of features available with Monzo, alongside their tiered membership programs, makes using their system slightly more complicated.
Safety and trust
Overall, Wise is the more trusted provider. This is mainly because they've been active since 2011, while Monzo was only launched in the US in 2019.
Both providers offer extensive in-app protections, including multi-factor authentication. They also boast the same level of fee transparency as they use the same transfer system.
You should only ever use regulated providers to transfer money. If a provider is not regulated, it’s likely to be a scam.
Remember: We will only ever recommend regulated financial institutions.
Customer feedback
Wise brings it home in customer feedback, with a greater reputation and more favorable reviews to match.
Over 60,000 Android users have rated the Monzo app 4.7 out of 5 stars, while iOS users have given the app 4.9 out of 5. This suggests the app is well designed and considered reliable by all who use it. Over on Trustpilot, Monzo has been awarded 4.5 out of 5 stars by more than 17,000 users.
Positive feedback accounts for 86% of the reviews, many of which reference the easy to use mobile interface, quick cross-border payments, helpful real-time notifications and spending insights.
Around 12% of the reviews are categorized as Bad or Poor and they include comments about account freezes and closures, blocked funds and unsatisfactory customer service.
The Wise platform is available via mobile app or website, enhancing the accessibility of their services. The app has been given a 4.8 out of 5 by iOS users and 4.5 out of 5 by Android customers. On Trustpilot Wise has been given 4.6 out of 5 which is an Excellent rating.
Positive customer reviews highlight the transparent fee structure, unmatched exchange rates, and trusted transfer process. Negative comments reference disappointment with recent price increases for certain currencies, unexplained deactivation or blocking and holding funds.
Elsewhere, Wise regularly knocks competitors off of the top spot and has been awarded a number of highly coveted titles by the money transfers community.
Monzo vs Wise - Key features
While they use the same transfer method, Monzo and Wise have different additional features that may be useful for you.
Wise has a multi-currency account
With a multi-currency account, you can store multiple currencies all in the same place. Wise lets you store up to 9 currencies at once, while Monzo doesn't give you access to multi-currency accounts. If you travel frequently or often deal in multiple currencies, Wise has the edge on Monzo.
Both allow fee-free spending abroad with your debit card
Both Monzo and Wise give you a fee-free debit card which allows you to spend like a local wherever you go. Monzo offers the standard Mastercard exchange rate, while Wise offers you the mid-market rate, but will charge a fee if you don't have enough of the required currency in your account.
Business accounts
While both providers offer business accounts, Monzo only offers business accounts to UK customers, making Wise the better option overall.
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