Trying to decide on Wise vs Revolut? In today’s fast-paced digital economy, choosing the right banking solution is crucial for businesses of all sizes. Traditional banks have long dominated the market, but innovative fintech companies have emerged as formidable competitors, providing efficient and cost-effective alternatives.
Among these contenders, Wise and Revolut have gained significant popularity as they offer robust business banking services tailored to the needs of modern enterprises.
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This article will delve into the pros, cons, key differences, costs, and other essential considerations when choosing between Wise vs Revolut for business banking.
Wise vs Revolut
| Features | Wise | Revolut |
|---|---|---|
| International Transfers | Excellent rates, low fees | Competitive rates, fees may apply |
| Multi-Currency Accounts | Available, easy currency management | Available, easy currency management |
| Full Banking License | No | Yes (Lithuania and European countries) |
| Credit and Loans | Not available | Available |
| Expense Management | Basic | Advanced with receipt capture |
| Virtual Cards | Available | Available |
| Physical Debit Cards | Not available | Available |
| Cash Deposits | Not available | Available at retail locations |
| Integrations and API | Yes | Yes |
| Customer Support | Multiple channels | Multiple channels |
| Security and Compliance | Robust measures, regulatory compliance | Robust measures, regulatory compliance |
Please note that the features and offerings may evolve over time, so it’s always a good idea to check the latest information from Wise and Revolut’s official websites for the most up-to-date details on their respective business banking services.
Statistics
- Wise:
- Over 10 million customers worldwide as of 2021.
- Transfers more than £4 billion (approximately $5.6 billion) per month globally.
- Offers multi-currency accounts in over 50 currencies.
- Revolut:
- Over 16 million personal and business customers worldwide as of 2021.
- Processed more than 150 million transactions per month in 2020.
- Raised over $800 million in funding from investors.
Wise
Wise is a trusted and transparent business banking platform known for its low-cost international transfers, multi-currency accounts, and seamless integration capabilities for efficient financial operations.
Pros of Wise for business banking
- Transparent and low-cost international transfers: Wise offers excellent currency exchange rates and low transfer fees, making it an ideal choice for businesses involved in global transactions. Their fees are often lower than traditional banks, resulting in cost savings.
- Multi-currency accounts: Wise allows businesses to hold and manage multiple currencies in one account. This feature simplifies international transactions, reduces conversion fees, and provides flexibility for businesses operating in different markets.
- Integrations and API: Wise offers seamless integration with popular accounting software and platforms, allowing businesses to streamline their financial operations and automate processes. The API enables businesses to customise their banking workflows and connect Wise with other applications.
- Batch payments and mass payouts: Wise provides efficient payment solutions for businesses with high transaction volumes. Features like batch payments and mass payouts streamline the process, saving time and effort for businesses managing multiple payments.
- Competitive currency exchange rates: Wise’s use of mid-market exchange rates ensures businesses get competitive rates for currency conversions, helping them save money on international transactions.
- Trustworthy and established platform: Wise (formerly TransferWise) has built a strong reputation as a trusted and reliable platform for international transfers, gaining the confidence of millions of users worldwide.
Cons of Wise for business banking
- Limited business-specific features: While Wise offers essential banking services, it may lack some features commonly found in traditional banks, such as business loans, credit lines, or merchant services. Businesses requiring these additional services may need to explore alternative banking solutions.
- Incomplete banking licenses: Wise currently doesn’t have a full banking license in all countries, which can limit certain services it can offer. This limitation may affect businesses operating in regions where Wise’s full banking license is not available.
- Potential account freezing or suspension: In rare cases, Wise has been known to freeze or suspend accounts temporarily for compliance or security reasons. While this is a precautionary measure, it can cause inconvenience and disruptions for businesses relying heavily on their Wise accounts.
- Limited physical presence: Wise primarily operates as an online platform, which means it may lack physical branch networks for businesses seeking in-person banking services or support.
- Availability of additional services: Wise’s focus is primarily on international transfers and multi-currency accounts. Businesses that require a broader range of services, such as business credit or financial products beyond basic banking, may need to explore other options.
- Customer support: Some users have reported occasional challenges with customer support, such as delays in response times or difficulty resolving complex issues. However, Wise has been making efforts to improve its customer support services.
Revolut
Revolut is an innovative business banking solution offering comprehensive features, including expense management, physical and virtual cards, competitive foreign exchange rates, and the convenience of cash deposits.
Pros of Revolut for business banking
- Full banking license: Revolut holds a full banking license in Lithuania and a European banking license in other European countries, allowing it to offer a broader range of banking services, including credit, loans, and overdrafts.
- Comprehensive features: Revolut provides advanced features such as expense management tools, receipt capture, automatic categorisation, and budgeting features, empowering businesses to efficiently manage their finances.
- Physical debit cards: In addition to virtual cards, Revolut offers physical debit cards, which can be beneficial for businesses that require in-person transactions or need to issue cards to employees.
- Competitive foreign exchange rates: Revolut offers competitive foreign exchange rates for international transactions, enabling businesses to save on currency conversion fees.
- Cash deposits: Revolut allows businesses to deposit cash into their accounts through participating retail locations, offering flexibility for businesses that handle cash transactions.
- Integrations and API: Revolut provides integrations and an API that enable businesses to connect their financial data with other platforms and streamline their operations.
Cons of Revolut for business banking
- Limited availability: While Revolut has expanded its services to various countries, its availability may still be limited compared to traditional banks, which may restrict access for businesses operating in certain regions.
- Customer support: Some users have reported issues with customer support, such as longer response times or difficulty in resolving complex inquiries. However, Revolut has been actively working to improve its customer support services.
- Additional fees: While Revolut offers free business account options, certain services, such as international transfers, foreign currency exchange, and cash deposits, may have associated fees. It’s important to review the fee structure carefully to understand the costs involved.
- Limited physical branch network: Revolut operates primarily as a digital banking platform, so businesses that prefer in-person branch services may find the lack of physical branches as a limitation.
- Regulatory limitations: While Revolut has obtained banking licenses, some users have expressed concerns about regulatory oversight, as regulatory frameworks may differ across countries.
Wise vs Revolut – Key differences
- Full banking license: Revolut holds a full banking license in Lithuania and a European banking license in other European countries, allowing it to offer a broader range of banking services, including credit, loans, and overdrafts, which Wise currently doesn’t provide.
- Expense management: Revolut offers advanced expense management features, such as receipt capture and automatic categorisation, providing businesses with better control and oversight of their spending.
- Virtual and physical cards: While both Wise and Revolut offer prepaid business cards, Revolut also provides physical debit cards, which can be beneficial for businesses that require in-person transactions.
- Cash deposits: Revolut allows businesses to deposit cash into their accounts through participating retail locations, while Wise currently doesn’t offer this feature.
Wise vs Revolut – Costs and pricing
Wise pricing and fees
Wise’s business pricing depends on the services utilised. International transfers have transparent fees, typically lower than traditional banks, with exchange rates close to the mid-market rate. Multi-currency account fees, integration fees, and payment infrastructure costs may also apply, depending on the scale of business requirements.
Revolut pricing and fees
Revolut offers different business plans, ranging from free to paid options with added benefits. Each plan has specific transaction limits and additional features, with fees applied for certain services, such as international transfers, foreign currency exchange, and cash deposits.
Wise vs Revolut – Other considerations
- Scalability: Consider the growth potential and international reach of your business. Wise’s expertise lies in international transfers, while Revolut’s broader banking services may be advantageous for businesses seeking expansion and financing options.
- Customer support: Evaluate the level of customer support provided by each platform. Both Wise and Revolut offer customer support through multiple channels, including live chat and email, but response times and support quality may vary.
- Security and compliance: Ensure that your chosen banking solution adheres to robust security measures and regulatory compliance to protect your business and customer data.
Wise vs Revolut – Verdict
In conclusion, the choice between Wise and Revolut for business banking depends on your specific requirements, priorities, and growth plans.
Wise excels in international transfers and multi-currency accounts, while Revolut offers a broader suite of banking services with its full banking license.
Consider the pros, cons, key differences, costs, and other factors discussed in this article to make an informed decision that aligns with your business’s needs and objectives.
Remember to review the latest features, pricing, and terms of service for each platform as they may evolve over time.
Wise vs Revolut – FAQ
Both Wise and Revolut provide international payment capabilities, allowing you to receive payments from customers around the world in various currencies.
Yes, both Wise and Revolut offer integrations with popular accounting software, making it easier to reconcile transactions and streamline financial management.
Wise and Revolut have different transaction limits and account balance limits based on their respective business plans. It’s important to review the specific details of each plan to ensure they meet your business’s requirements.
Yes, both Wise and Revolut can be used for e-commerce and online transactions. They provide virtual cards that can be used for secure online payments.
The account setup process for both Wise and Revolut is typically straightforward and can be done online. The time it takes to set up an account may vary, but generally, it can be completed within a few business days.
Both Wise and Revolut strive for transparency in their fee structures. However, it’s essential to review and understand the fees associated with specific services, such as international transfers, currency exchange, or additional features, as they may vary.
Currently, Wise does not offer credit or loan services for businesses. In contrast, Revolut provides credit and loan offerings, subject to eligibility criteria and credit assessment.
Both Wise and Revolut employ robust security measures to protect their customers’ data and transactions. They use encryption, two-factor authentication, and comply with relevant regulatory standards to ensure the security of their platforms.
Remember, it’s essential to review the latest information from Wise and Revolut, as well as their terms and conditions, to have accurate and up-to-date information on their business banking services and any associated fees or limitations.