Banking

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

Compare the best payment apps in the UK. Understand fees, features, and which app is best for sending money, spending abroad, and everyday payments.

Payment apps have revolutionised how we send money, pay abroad, and manage finances. Here’s how they compare for different uses.

Quick Comparison

App Best For UK Contact FSCS Protected Monthly Fee
Wise International transfers Account + card No (safeguarded) Free
PayPal Online purchase protection Account only No (safeguarded) Free
Revolut Multi-currency spending Full bank account Yes (from 2024) Free-£45/month
Monzo Budgeting & everyday banking Full bank account Yes Free-£15/month
Starling Interest & business banking Full bank account Yes Free
Chase Cashback & savings Full bank account Yes Free

Wise (TransferWise)

Overview

Feature Details
Type E-money institution + international transfers
Best for Sending money abroad at lowest cost
FSCS protected No (safeguarded under e-money rules)
Multi-currency Yes (50+ currencies)
Debit card Yes
Interest Yes (varies by currency)

Fees

Service Fee
UK account Free
Wise card One-off £7
Send £1,000 to Europe ~£4.50 (0.45%)
Send £1,000 to USA ~£5.50 (0.55%)
Send £1,000 to Thailand ~£9.50 (0.95%)
UK spending Free
International spending Real exchange rate, small fee
Cash withdrawal £200 free/month, 1.75% after

When to Use Wise

Situation Why Wise Wins
Sending money abroad Lowest fees, real exchange rate
Receiving foreign payments Multi-currency account
Paying freelancers internationally Batch payments feature
Travel card No markup on exchange
Invoicing in other currencies Hold and convert when rates are good

When NOT to Use Wise

Situation Better Alternative
Main UK bank account Monzo, Starling, Chase
Overdraft needed Traditional bank
FSCS protection important UK bank (Monzo, Starling)
Domestic UK only Any UK current account

PayPal

Overview

Feature Details
Type E-money institution, payment processor
Best for Online purchase protection, eBay
FSCS protected No (safeguarded under e-money rules)
Buyer protection Yes (up to 180 days)
Seller protection Yes (eligible transactions)

Fees

Service Fee
UK account Free
Pay in GBP Free
Receive money (personal) Free
Receive money (business) 2.9% + 30p
Send international (standard) Free (poor exchange rate)
Exchange rate markup 3-4% worse than mid-market
Withdraw to bank Free (1-3 days)
Instant bank transfer 1% (max £10)

PayPal Exchange Rate Problem

Sending £1,000 to EUR Wise PayPal
Mid-market rate €1,160 €1,160
Rate you get €1,155 €1,118
Fee £4.50 “Free”
Actual cost £4.50 ~£36

PayPal’s “free” transfers hide a 3-4% exchange rate markup. Always compare.

When to Use PayPal

Situation Why PayPal Works
Online shopping Buyer protection
eBay transactions Integrated, protected
Don’t trust website with card Shield your card details
Refund negotiations PayPal often sides with buyers
Business receiving payments Wide acceptance

When NOT to Use PayPal

Situation Better Alternative
International money transfer Wise (much cheaper)
Travel spending Revolut, Wise, Monzo
Sending to friends Bank transfer (free)
Daily spending Debit card

Revolut

Overview

Feature Details
Type Bank (UK banking licence from 2024)
Best for Multi-currency, travel, crypto
FSCS protected Yes (up to £85,000)
Currencies 30+
Crypto trading Yes
Stock trading Yes

Plans

Plan Monthly FX Allowance Cash Withdrawal Lounge Access
Standard Free £1,000/month fee-free £200/month No
Plus £3.99 £3,000/month £400/month No
Premium £7.99 Unlimited £800/month Yes (3 visits)
Metal £14.99 Unlimited £1,500/month Yes (5 visits)
Ultra £45 Unlimited £2,000/month Yes (unlimited)

Fees

Service Standard Plan Above Allowance
FX spending Free (to £1,000/month) 0.5% weekdays, 1% weekends
International transfer Free (to £1,000) 0.3-2% depending on country
Crypto exchange 1.49% (0.99% Plus+) -
Stock trading Commission-free (1/month) £1 per trade
ATM withdrawal Free (to £200) 2%

When to Use Revolut

Situation Why Revolut Works
Frequent travellers Multi-currency, lounge access
Budget control Spending limits, categories
Group expenses Split bills, request money
Crypto-curious Integrated trading
Premium perks Insurance, lounges (paid plans)

When NOT to Use Revolut

Situation Better Alternative
High-value international transfers Wise (cheaper for large sums)
Simple budgeting Monzo (better interface)
Interest on savings Chase, Starling
Customer service priority Traditional bank

Monzo

Overview

Feature Details
Type UK bank (full licence)
Best for Budgeting, everyday banking
FSCS protected Yes (up to £85,000)
Sort code/account number Yes
Direct debits Yes

Plans

Plan Monthly Features
Free £0 Pots, instant notifications, fee-free spending abroad
Plus £5 Custom categories, credit tracker, virtual cards
Premium £15 Metal card, phone insurance, travel insurance, 4% interest

Fees

Service Free Plan
UK account Free
Debit card Free
Spending abroad Fee-free
Cash withdrawal UK £250 free/6 months
Cash withdrawal abroad £200/month free
International transfers Via Wise (at Wise rates)

Standout Features

Feature How It Helps
Pots Separate money for bills, savings, goals
Salary sorter Auto-divide pay into pots when it arrives
Bill tracking See recurring payments easily
Get paid early Access salary day before payday
Gambling block Self-exclude from gambling payments
Shared tabs Split bills with friends

When to Use Monzo

Situation Why Monzo Works
Budgeting struggles Pots, spending insights
Impulse spending Gambling blocks, spending limits
Splitting bills Shared tabs, request money
Travel (no fees) Fee-free abroad, £200 cash
Main bank Full banking features

Starling

Overview

Feature Details
Type UK bank (full licence)
Best for Savings interest, business accounts
FSCS protected Yes (up to £85,000)
Interest on balance 3.25% AER
Business accounts Yes

Fees

Service Cost
Personal account Free
Debit card Free
Replacement card Free
Spending abroad Fee-free
Cash withdrawal abroad £300/month free
International transfers Via Wise

Starling vs Monzo

Feature Starling Monzo (Free)
Interest on balance 3.25% 0%
Free cash abroad £300/month £200/month
Business accounts Excellent Available
App design Clean, functional More playful
Budgeting tools Good Excellent
Card replacement Free £5

Chase UK

Overview

Feature Details
Type UK bank (JPMorgan Chase)
Best for Cashback, high savings interest
FSCS protected Yes (up to £85,000)
Cashback 1% (up to £15/month for first year)
Savings interest Competitive linked rates

Fees

Service Cost
Account Free
Card Free
Round-ups Free
Foreign spending Fee-free
Cash withdrawal £500/month free

Standout Features

Feature Details
1% cashback First year, on card spending
High savings rate Competitive linked saver
Round-ups Auto-save spare change
Fee-free abroad No markup

Best App by Use Case

Sending Money Abroad

Ranking App Why
1st Wise Lowest fees, real exchange rate
2nd Revolut Good rates within allowance
3rd Monzo/Starling Use Wise integration
Last PayPal Hidden fees in exchange rate

Travelling Abroad

Ranking App Why
1st Revolut Premium Multi-currency, lounge access
2nd Wise Hold multiple currencies
3rd Monzo/Starling Fee-free spending
Good backup Chase Fee-free, widely accepted

Everyday UK Banking

Ranking App Why
1st Monzo Best budgeting features
2nd Starling Interest on balance
3rd Chase Cashback + savings
Backup Nationwide (basic) Branch access

Online Shopping Protection

Ranking App Why
1st PayPal Buyer protection
2nd Credit card Section 75 protection
3rd Debit card Chargeback rights

Receiving International Payments

Ranking App Why
1st Wise Local bank details in 10+ countries
2nd Revolut Multi-currency accounts
3rd PayPal Widely accepted, high fees

Safety Comparison

App Protection Type Maximum Protected
Monzo FSCS £85,000
Starling FSCS £85,000
Chase FSCS £85,000
Revolut FSCS (from 2024) £85,000
Wise E-money safeguarding Full balance
PayPal E-money safeguarding Full balance

FSCS means if the bank fails, you get your money back (up to £85,000) from the government scheme.

E-money safeguarding means funds are kept separate from company money, but there’s no government guarantee.