Last Updated on December, 2024
Imagine sending money abroad or managing your finances as easy as tapping your phone. That’s the promise of Wise and Monzo, two digital banking services.
I’m here to guide you through their offerings, making it simple to pick the perfect partner for your financial journey.
Don’t miss anything; keep reading…
Quick Summary
Monzo specializes in everyday banking and offers a variety of accounts, while Wise focuses on international money transfers and multi-currency accounts.
Wise generally offers lower fees and better exchange rates for international transfers compared to Monzo, which provides fee-free spending abroad but has other service fees.
Both Monzo and Wise are considered reliable and are regulated by the UK’s Financial Conduct Authority, but they have different strengths and customer feedback, with Wise being preferred for international transfers and Monzo for comprehensive banking services.
Contents
Monzo vs Wise
About Monzo
Monzo is a digital bank from the UK. It started in 2015 and operates only online. Instead of going to a physical bank, people use the Monzo app on their phones. This app is different from traditional banks and makes banking easier and faster.
Monzo is now a fully licensed bank approved by the Financial Conduct Authority (FCA). This means it can offer things like overdrafts. Also, if you have money in a Monzo account, up to £85,000 is protected by the Financial Services Compensation Scheme (FSCS).
Monzo and Wise both want to offer simple, affordable, and international banking services. In 2018, they teamed up to make it easier and cheaper for customers to send money safe internationally.
Discover everything you need to know about Monzo in our detailed review.
About Wise
Wise is a company that handles electronic money. It started operating in 2011 with the goal of offering quick and fair international money transfers. The founders came up with the idea because they wanted to avoid additional fees and bad exchange rates from traditional banks.
Now, more than 10 million people worldwide use Wise. It’s popular because it gives fair rates and clear fees for transferring money between countries.
Wise focuses mainly on sending money internationally. They also deal with less common currencies. Plus, they offer banking services for small and medium-sized businesses.
Discover everything you need to know about Wise in our detailed review.
Monzo vs Wise: Bank Account Types
Monzo Account Types
Monzo offers various types of accounts to suit different needs:
Full-featured business accounts are available with Monzo Business Pro for £5 a month:
Wise Account Types
Wise offers two types of accounts: the Wise Borderless Account and the Wise Business Account.
The Wise Borderless Account is like having a wallet for different currencies. You can keep and manage cash in over 40 different currencies.
This means you can send and receive money from around the world, convert currencies when you need to, and keep money in different currencies all in one account.
If you have less than 200 euros in your account, there’s no charge. But if you have more, you’ll be charged a small monthly fee based on the amount in your account, plus a small fee for each withdrawal.
With a Wise Borderless Account, you can track your money as it moves in and out, easily switch between currencies, and use a debit card to pay for things.
Wise offers two types of accounts: the Wise Borderless Account and the Wise Business Account.
The Wise Borderless Account is like having a wallet for different currencies. You can keep and manage cash in over 40 different currencies. This means you can send and receive money from around the world, convert currencies when you need to, and keep money in different currencies all in one account.
If you have less than 200 euros in your account, there’s no charge. But if you have more, you’ll be charged a small monthly fee based on the amount in your account, plus a small fee for each withdrawal.
With a Wise Borderless Account, you can track your money as it moves in and out, easily switch between currencies, and use a debit card to pay for things.
However, there are some things you can’t do with this account, like getting cash back or overdrafts. But you can set up direct debits in different currencies.
Many people who need to send money internationally choose this Wise account.
The Wise Business Account is made for businesses. It offers things like international payments, Wise multi-currency account(s), local bank details for receiving payments, and tools for managing expenses.
It makes it easier for businesses to transfer money abroad and saves them money on currency conversion fees.
Wise vs Monzo: Features
Wise and Monzo are both money-related services, but they have different features. Let’s compare:
International Transactions:
Banking Services:
Fees:
Currency Exchange:
App Features:
In short, Wise is best for international transfers and multi-currency account(s), while Monzo offers a wider range of banking services and focuses on user-friendly features.
Monzo vs Wise: Fees comparison
Sending Money Overseas:
ATM Withdrawals:
Exchange Rates:
Wise vs Monzo: Cards & Transfer Speeds
Monzo and Wise offer both virtual and physical debit cards, providing flexibility for customers when making card payments. Monzo operates with Mastercard networks. Both cards support popular payment methods like Google Pay, Apple Pay, and contactless payments.
Additionally, users of both Monzo and Wise can easily freeze and unfreeze their debit cards through their mobile apps for security purposes.
Regarding transfer speed, Monzo enables instant peer-to-peer transfers between users. However, international transfers through Monzo may take up to three working days to reach the recipient.
Similarly, Wise facilitates instant transfers between local Wise accounts, but international card payments typically take between one to five business days to process. To expedite payments, using a debit or credit card is an option, although it often incurs higher fees.
Wise vs Monzo: Which is Trustworthy?
If you ask me which is trustworthy, to be honest, both Wise and Monzo are considered reliable.
Wise and Monzo are both regulated by the UK’s Financial Conduct Authority, ensuring they handle your money safely.
Wise is larger, with over 10 million global customers, while Monzo has 5 million customers in the UK. Wise makes its fee schedule easy to find on its website, which helps its credibility.
Monzo has a full UK banking license, so they offer more protections. They can protect up to £85,000 of your money through the Financial Services Compensation Scheme. Plus, Monzo can offer overdrafts and other loans.
Wise is an electronic money institution, which means it can handle your money electronically. However, it doesn’t offer deposit protection like Monzo.
Wise vs Monzo: Exchange Rates
Did you know that Monzo does not charge fees when using its card abroad? It offers competitive rates based on its markup over the Mastercard rate.
Wise uses the mid-market rate, which is competitive compared to typical bank rates. Wise multi-currency account feature allows users to avoid bank transfer fees while abroad by storing funds in the local currency, enabling spending without extra fees.
Wise also allows customers to lock in the real exchange rate at the time of transfer, protecting against currency fluctuations and ensuring the transferred amount remains constant.
However, both Monzo and Wise prioritize providing favorable exchange rate(s) and transparent fees to enhance the customer experience for international payments and transfers.
Wise vs Monzo: Customer Reviews
GUESS WHAT? Wise has a Trustpilot score of 4.5 out of 5, with 82% of users rating it five stars. Customers praise its completely free accounts, fast transfers, and excellent customer support. Monzo holds a Trustpilot score of 4, with 77% of users awarding it five stars.
Positive feedback highlights its user-friendly app and helpful features. However, both face criticism, with Wise facing occasional delays in transfers and Monzo facing issues with fraud reports and customer service.
Wise Customer Reviews (Mostly Positive Reviews):
- Customer Review 01:
I’m so pleased I found out about Wise. So far my experience using services offered by Wise has been better than anything I had used before. Especially in terms of getting higher amounts paid to me due to Wise’s lower fees, I think.
I won’t hesitate to recommend Wise to others.
In short, this user (Paradise Academy) is expressing their satisfaction with their experience using Wise, particularly highlighting lower fees and higher payouts compared to other services. They’re enthusiastic about recommending Wise to others.
- Customer Review 02:
Been using Transferwise or wise as it is called now for about 10 years. Has never let me down and always quick transfers. Very transparent fees so you know what you’ll get before using.
In short, Akshath says he has been using Wise for ten years and finds it reliable with quick transfers and transparent fees. He appreciates the ease of use, especially while traveling, as the card automatically converts currency with instant notifications about transactions.
- Customer Review 03:
It was a headache to register, with errors reported (at several steps) that didn’t give any idea what could be the mistake or remedy. It turned out that the best approach, at each hiccup, was to try again – the exact same thing – because after a few iterations, it worked.
In short, the user needed help with registering on a website, facing vague errors without clear solutions. He says he eventually did by repeating the same steps, but he is unsure if the website, browser, or internet connection was to blame.
Monzo Customer Reviews (Mixed Reviews):
- Customer Review 01:
I’ve had Monzo for the last 2 years and it has helped me so much in savings and day to day use ! My favourite thing is pots to split and save for different things big or small. I think it’s great for anyone especially younger people who need to learn about money management.
In short, Alani says she has been using Monzo for two years and finds it extremely helpful for savings and day-to-day expenses. She particularly likes the feature of pots to separate and save money for different purposes, noting its usefulness for younger individuals learning about money management.
- Customer Review 02:
Just one issue – there should be a way to download ’stamped/certified bank statement’ from the app. It takes around 3-5 days to come by post, which is really annoying and not a kind of friction I was expecting from Monzo. Even my university has a system where I can download stamped documents online.
In short, the user wants Monzo to add a feature allowing customers to download stamped/certified bank statements directly from the app rather than waiting for them to arrive by post.
- Customer Review 03:
I’m a Monzo premium account holder. I reported a fraud on my card on Wednesday 1st May. It took Monzo almost 2 days to block my card after I reported the scam by clicking to request a new card due to fraud and calling them as well!
In short, Agata says he has experienced a delay of nearly two days in getting their Monzo premium account card blocked after reporting fraud, despite taking prompt action. He is unhappy with the bank’s slow response.
Conclusion
As you weigh your options between Wise and Monzo, remember to consider not just their features and fees but also their track records and customer experiences.
Whether it’s seamless international transfers with Wise or comprehensive digital banking with Monzo, the choice ultimately lies in what best aligns with your financial goals and preferences.
Take your time, explore your options, and choose a banking journey that suits you best.
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