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
| App | Best for | Account type | FSCS protected | Monthly fee |
|---|---|---|---|---|
| Wise | International transfers, multi-currency | E-money (safeguarded) | No | Free (card £7 one-off) |
| PayPal | Online purchase protection | E-money (safeguarded) | No | Free |
| Revolut | Multi-currency, travel, crypto | Bank (from 2024) | Yes | Free–£45/month |
| Monzo | Budgeting, everyday banking | Bank | Yes | Free–£15/month |
| Starling | Interest, business banking | Bank | Yes | Free |
| Chase UK | Cashback, savings, travel | Bank | Yes | Free |
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:
| Service | Fee |
|---|---|
| UK account | Free |
| Wise debit card | £7 one-off |
| Send £1,000 to Europe | ~£4.50 (0.45%) |
| Send £1,000 to USA | ~£5.50 (0.55%) |
| UK card spending | Free |
| Foreign card spending | Small fee above free limit |
| ATM withdrawals | £200/month free, then 1.75% |
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.
| Sending £1,000 to EUR | Wise | PayPal |
|---|---|---|
| Exchange rate | Mid-market | Mid-market minus ~3.5% |
| Explicit fee | ~£4.50 | £0 |
| Actual cost | ~£4.50 | ~£35–£40 |
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 became a fully licensed UK bank in 2024, meaning deposits up to £85,000 are now FSCS-protected — a significant change from its earlier e-money status. 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:
| Plan | Monthly | FX free allowance | ATM free/month |
|---|---|---|---|
| Standard | Free | £1,000 | £200 |
| Plus | £3.99 | £3,000 | £400 |
| Premium | £7.99 | Unlimited | £800 |
| Metal | £14.99 | Unlimited | £1,500 |
| Ultra | £45 | Unlimited | £2,000 |
Above the monthly FX allowance on the standard plan, a 0.5% fee applies on weekdays (1% on weekends). The weekend exchange rate surcharge is worth noting — if you make large currency conversions, do so on weekdays.
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 spending and £200/month free ATM withdrawals in the EEA.
Plans:
| Plan | Monthly | Key extras |
|---|---|---|
| Standard | Free | Pots, fee-free abroad, £200/month EEA ATM |
| Plus | £5 | Credit tracker, virtual cards, £400/month ATM |
| Premium | £15 | Travel + phone insurance, metal card, £600/month ATM |
The standard account’s 3% fee on all non-EEA ATM withdrawals is 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 on your current account balance (use Starling or Chase), heavy non-European ATM use on the free plan.
Starling
Starling is Monzo’s closest UK competitor but with a different emphasis. It pays 3.25% AER interest on current account balances up to £5,000 — a significant advantage over Monzo’s 0% on the free account. Its overseas ATM policy is the most generous of any free UK bank account, with no fixed monthly cap (subject to fair use).
| Feature | Starling | Monzo (free) |
|---|---|---|
| Interest on balance | 3.25% AER | 0% |
| Overseas ATM allowance | No fixed cap | £200/month EEA |
| Business account | Excellent | Available |
| Card replacement | Free | £5 |
| Budgeting tools | Good | Excellent (Pots, salary sorter) |
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: earning interest on your everyday balance, cash-heavy travel, business banking.
Chase UK
Chase UK is operated by JPMorgan Chase and stands out for its 1% cashback on all card spending in the first year (up to £15/month), and a competitive linked savings rate. It has no monthly fee and charges 0% on foreign card spending with £500/month free overseas ATM withdrawals. 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 (interest), 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 (from 2024) — all £85,000. Wise and PayPal are safeguarded but not FSCS-covered.
Safety: FSCS vs E-Money Safeguarding
| App | Protection | Maximum |
|---|---|---|
| Monzo | FSCS | £85,000 |
| Starling | FSCS | £85,000 |
| Chase UK | FSCS | £85,000 |
| Revolut | FSCS (from 2024) | £85,000 |
| Wise | E-money safeguarding | 100% of balance |
| PayPal | E-money safeguarding | 100% of balance |
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.
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