Payment Apps Comparison UK 2026 — PayPal vs Wise vs Revolut vs Monzo

Part of the Payments and Transactions guide.

Payment apps range from fully FSCS-protected UK banks (Monzo, Starling, Chase, Revolut) to e-money institutions with safeguarded but unguaranteed funds (Wise, PayPal). Choosing the right one depends on what you need it for — international transfers, travel spending, everyday banking, or purchase protection. Here is how they compare across all major use cases.

Quick Comparison

Wise

Wise (formerly TransferWise) is not a bank — it is an e-money institution specialising in international transfers and multi-currency accounts. Its core advantage is using the real mid-market exchange rate with a transparent, low percentage fee — typically 0.35–1.5% depending on the currency pair. This makes it dramatically cheaper than PayPal for international transfers and competitive with Revolut even on larger amounts.

Fees at a glance:

Wise also offers local bank account details in 10+ countries (USD, EUR, GBP, AUD, etc.), making it useful for receiving international payments — a feature valuable for freelancers and contractors. For sending money abroad cheaply, Wise is the benchmark to compare others against.

Use Wise for: sending money abroad, receiving international payments, holding multiple currencies, paying freelancers overseas.

Avoid Wise for: your main UK current account (no FSCS protection, no overdraft), if FSCS coverage is important.

PayPal

PayPal is best understood as a purchase protection and payments layer rather than a bank or money transfer service. Its buyer protection — which covers most purchases for 180 days — is the main reason to use it. For anything involving exchange rates, PayPal is the most expensive option.

The exchange rate problem: PayPal markets international transfers as “free,” but applies a 3–4% exchange rate markup compared to the mid-market rate. Sending £1,000 to euros looks free, but the rate you receive is roughly €40 worse than Wise would give you.

Use PayPal for: online shopping where buyer protection matters, eBay, shielding your card details from unfamiliar websites.

Avoid PayPal for: sending money abroad, travel, everyday spending.

Revolut

Revolut received a restricted UK banking licence in 2024 and became fully authorised on 11 March 2026, meaning deposits held with Revolut Bank UK Ltd are now FSCS-protected up to £120,000 (raised from £85,000 on 1 December 2025) — a significant change from its earlier e-money-only status. Check the app to confirm your account has been migrated, as rollout is phased. It offers the most feature-rich paid tiers of any app-based account, including multi-currency accounts, crypto and stock trading, and travel lounge access on premium plans.

Plans:

Above the monthly FX allowance, a fair usage fee applies — 1% on the Standard plan, 0.5% on Plus (Premium, Metal and Ultra have no fair usage limit). Revolut also adds a separate 1% weekend markup on currency exchange for all plans below Premium, regardless of your allowance — if you make large currency conversions, do so on a weekday.

Use Revolut for: multi-currency spending, frequent travel (Premium+), group bill splitting, crypto exposure.

Avoid Revolut for: large international transfers (Wise is usually cheaper), if you want unlimited free overseas ATMs on a free plan (Starling beats it).

Monzo

Monzo is one of the UK’s largest digital banks with over 9 million customers. It excels at budgeting and everyday banking — its Pots system, salary sorter, and spending insights are the most developed of any UK app bank. The free account includes fee-free foreign card spending and unlimited fee-free ATM withdrawals within the EEA; a separate £200-per-30-days allowance applies to withdrawals outside the EEA.

Plans:

Monzo’s older Plus (£5–£6/month) and Premium (£15–£17/month) plans have been closed to new customers since April 2024 — existing subscribers keep them, but anyone signing up now is offered Extra, Perks or Max instead. Outside the EEA, a 3% fee applies once you exceed your plan’s 30-day allowance — a meaningful limitation for destinations like Southeast Asia. For travel debit card comparisons, see Monzo vs Starling vs Revolut.

Use Monzo for: main everyday UK banking, budgeting and savings goals, splitting bills, European travel.

Avoid Monzo for: earning interest directly on your current account balance (no UK app bank in this comparison pays interest on the everyday balance — use a linked savings product instead), heavy non-European ATM use on the free or Extra plan.

Starling

Starling is Monzo’s closest UK competitor but with a different emphasis. Starling removed interest on current account balances in February 2025 — the everyday balance now pays 0%, the same as Monzo. Instead, Starling customers earn interest via the linked Easy Saver account, which pays 4.00% AER (variable, including a fixed 1.50% 12-month bonus) on balances up to £1 million. Starling’s overseas ATM policy is the most generous of any free UK bank account, with no fixed monthly cap (subject to fair use).

Starling also has a strong reputation for business current accounts, making it the preferred digital bank for sole traders and small businesses.

Use Starling for: cash-heavy travel, business banking, and easy access to its linked Easy Saver for interest on spare cash.

Chase UK

Chase UK is operated by JPMorgan Chase and stands out for its 2% cashback on everyday spending in specific categories (groceries, restaurants, cafes, takeaways, everyday transport, fuel and public EV charging), capped at £20 cashback a month, plus a competitive linked savings rate. It has no monthly fee and charges 0% on foreign card spending, with a £1,500-a-month free overseas ATM allowance (subject to a £500 daily limit). For full details, see the best current accounts guide.

Use Chase for: cashback on everyday spending, competitive savings linked to your current account, travel abroad.

Which App to Use for Each Situation

Sending money abroad: Wise → Revolut (within allowance) → Monzo/Starling via Wise integration. Avoid PayPal.

Travelling abroad (card spending): Starling, Chase UK, or Monzo — all charge 0%. Revolut Premium for lounge access.

Everyday UK banking: Monzo (budgeting), Starling (business banking and linked savings), or Chase (cashback).

Online shopping protection: PayPal buyer protection for everyday purchases; credit card Section 75 for purchases over £100.

Receiving international payments: Wise (local account details in 10+ currencies), then Revolut.

FSCS safety: Monzo, Starling, Chase, Revolut (fully authorised from March 2026) — all £120,000 (raised from £85,000 on 1 December 2025). Wise and PayPal are safeguarded but not FSCS-covered.

Safety: FSCS vs E-Money Safeguarding

FSCS protection means the government compensates you within 7 days if the bank fails. E-money safeguarding means funds are kept separate from the company’s own money — protection in insolvency, but no government guarantee and potentially slower recovery. For large balances, FSCS-covered accounts are safer. For the digital wallets landscape more broadly, see our digital wallets guide.

More from the Payments and Transactions guide:

• How to Send Money Abroad Cheaply
• Direct Debit vs Standing Order
• Digital Wallets Guide UK
• Best Current Accounts UK 2026
• Payments and Transactions Hub