Revolut vs. Wise: How to Choose the Best Digital Banking Platform for You

If you’re looking for a convenient and cost-effective way to manage your money across different currencies and countries, you might want to consider using a digital banking platform. These are online platforms that offer various financial services, such as multi-currency accounts, debit cards, international transfers, budgeting tools, and more.

Two of the most popular and innovative digital banking platforms in the market are Revolut and Wise. Both of them have millions of customers around the world who use them for their personal or business needs. But how do they compare with each other? And which one is better suited for your needs?

What is Revolut?

Revolut is a digital banking platform and international money transfer service that was founded in 2015 in the UK. It operates in over 40 countries and has more than 18 million customers. Revolut’s main goal is to make banking more accessible, transparent, and fair for everyone.

Some of the main features and services that Revolut offers are:

• Multi-currency accounts: You can hold up to 35 currencies in your Revolut account and exchange them at the interbank rate (the rate banks use to trade with each other) during weekdays. You can also send and receive money in different currencies without any fees within the Revolut network.
• Prepaid debit cards: You can get a physical or virtual debit card that you can use to pay online or in-store anywhere in the world. You can also withdraw cash from ATMs for free up to a certain limit per month. 
• Budgeting tools: You can track your spending habits, set spending limits, create savings goals, and round up your spare change with Revolut’s budgeting tools. You can also get instant notifications every time you make a transaction. 
• Crypto trading: You can buy, sell, or hold cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more with Revolut. You can also exchange them with other currencies at competitive rates. 
• Insurance: You can get travel, device, or home insurance with Revolut. You can also access medical services such as online consultations or prescriptions with Revolut Health. 
• Other features: You can also access other features such as rewards, donations, trading stocks or commodities, gaming vouchers, airport lounges, etc.

Revolut offers different types of accounts depending on your needs:

• Standard: This is the basic account that is free to use. You get access to most of the features mentioned above but with some limitations on fees or limits. 
• Premium: This is the upgraded account that costs $9.99 per month. You get access to more features, such as higher limits on ATM withdrawals or currency exchanges, disposable virtual cards, priority customer support, etc. 
• Metal: This is the premium account that costs $16.99 per month. You get access to all the features of Premium plus a metal card made of steel, cashback on card payments, concierge service, etc. 
• Business: This is the account for businesses that costs from $0 to $1,000 per month, depending on the size of your business. You get access to features such as multi-currency accounts for your business transactions, corporate cards for your employees, invoicing tools, accounting integrations, etc. 
• Junior: This is the account for children aged 7-17 that is free to use with a Standard account or above. You get access to features such as a prepaid debit card, spending limits and controls, financial education, games, etc.

What is Wise?

Formerly known as TransferWise, Wise is a digital banking platform that was founded in the UK in 2011. It operates in over 180 countries and has more than 10 million customers. Wise’s main focus is on providing low-cost international money transfers and currency exchange.

Some of the main features and services that Wise offers are:

• Low-cost international money transfers: You can send money to over 80 countries with Wise at the real mid-market rate (the rate that you see on Google or Reuters) and with transparent fees. You can also receive money from over 30 countries for free with your own local bank accounts. 
• Multi-currency accounts: You can hold up to 60 currencies in your Wise account and convert them at the mid-market rate anytime. You can also get local bank details for 10 currencies, such as EUR, GBP, USD, AUD, etc. 
• Debit cards: You can get a debit card that you can use to pay online or in-store in any currency at the mid-market rate. You can also withdraw cash from ATMs for free up to a certain limit per month. 
• Borderless accounts: You can get a borderless account that works like a local bank account in multiple countries. You can send, receive, and spend money in different currencies without any fees or hassle. 
• Other features: You can also access other features such as savings accounts, investments, business tools, etc.

Wise offers two types of accounts depending on your needs:

• Personal: This is the account for individuals that is free to open and use. You get access to most of the features mentioned above but with some limitations on fees or limits. 
• Business: This is the account for businesses that costs $31 to open and $9 per month to use. You get access to more features such as batch payments, multi-user access, Xero integration, etc.

Revolut vs. Wise: How Do They Compare With Each Other?

Now that we have a general overview of what Revolut and Wise are and what they offer let’s compare them in more detail on four key aspects: fees, exchange rates, transfer speed, and customer reviews.

Fees

Both Revolut and Wise charge fees for different services, such as account maintenance, card issuance, ATM withdrawals, currency conversion, international money transfer fees, etc. However, the amount and structure of these fees vary depending on the platform and the account type.

In general, however, we can say that Revolut offers more free services for its paid account holders (Premium and Metal), such as unlimited currency conversions during weekdays or higher ATM withdrawal limits. Meanwhile, Wise offers more consistent and transparent fees for its free account holders (Personal and Business), such as fixed currency conversion fees or low international money transfer fees.

Exchange Rates

Both Revolut and Wise offer competitive exchange rates for different currency pairs. However, the way they calculate their exchange rates and how they differ from the market rates vary depending on the platform.

Revolut uses the interbank rate (the rate that banks use to trade with each other) as its reference rate for currency conversions. However, this rate is only available during weekdays (Monday to Friday) and with some limits depending on your account type. During weekends (Saturday and Sunday), Revolut adds a surcharge of 0.5% to 2.5% to the interbank rate depending on the currency pair. This is because the currency markets are closed during weekends, and the rates may fluctuate.

On the other hand, Wise uses the mid-market rate (the rate you see on Google or Reuters) as its reference rate for currency conversions. This is the fairest and most transparent rate available, as it’s the average of the buy and sell rates that banks and brokers use. Wise always gives you this rate without any markup or hidden fees.

Summing it up, Revolut offers better exchange rates than Wise during weekdays if you stay within your account limits, while Wise offers better exchange rates than Revolut during weekends or if you exceed your account limits.

Transfer Speed

Both Revolut and Wise offer fast transfer speeds for different destinations and payment methods. Both platforms allow you to track or monitor the progress of your money transfer on their websites or apps. You can also get notifications or updates via email or SMS. However, the exact time it takes for your money to arrive may vary depending on various factors, such as the verification process, the bank processing times, the holidays, etc.

Revolut claims that most transfers are instant or take up to two hours to complete. However, some transfers may take longer depending on the destination country, the currency pair, or the payment method. For example, transfers to countries outside Europe or in exotic currencies may take up to five working days.

Wise claims that most of its money transfers are completed within one working day or less. However, some transfers may take longer depending on the destination country, the currency pair, or the payment method. For example, transfers that involve bank transfers or debit cards may take longer than money transfers that involve credit cards or Apple Pay.

Customer Reviews

Both Revolut and Wise have received positive and negative customer reviews on various platforms, such as Trustpilot, Google Play Store, App Store, etc. These reviews reflect the experiences and opinions of real customers who have used their services.

Revolut is praised for its variety of features and services, such as multi-currency accounts, prepaid debit cards, budgeting tools, crypto trading, etc., while it’s also criticized for its poor customer service, account blocking issues, hidden fees, weekend surcharges, etc.

Wise, on the other hand, is lauded for its low-cost and transparent international transfers, mid-market exchange rates, multi-currency accounts, debit cards, etc., but has received complaints for slow or failed transfers, verification delays, limited payment options, etc.

The Verdict: Which One Should You Choose?

By now, you should have a clear idea of what Revolut and Wise are and how they compare with each other in various aspects. But which one should you choose for your digital banking needs?

The answer is: it depends.

It depends on your personal or business needs and preferences. It depends on what features or money transfer services you value more. It depends on how often and how much you need to send or receive money abroad.

There is no one-size-fits-all solution when it comes to digital banking platforms. Both Revolut and Wise have specific advantages over the other as well as disadvantages depending on your situation.

Ultimately, the best way to choose between Revolut and Wise is to try them out yourself. You can open a free account with either platform in minutes and start using their features and services. You can also compare their fees and rates before making any transactions.

By doing so, you can see for yourself which platform offers the features and services that align with your financial goals. You can also see which platform gives you the best value for money when sending or receiving money abroad.