Wise vs Revolut: Which Is Better for Spending Abroad?

Paying for things abroad with a normal bank card usually costs more than people realise. Many banks add a foreign transaction fee of a few percent to every purchase, then convert at an exchange rate that's worse than the one you see on Google. On a two-week trip, that quietly adds up. Wise and Revolut both exist to cut out most of that cost, but they work in slightly different ways.

How Wise works

Wise converts your money at the mid-market rate (the real rate banks use between themselves) and charges a small, clearly shown conversion fee instead of hiding a markup in the rate. You can hold balances in dozens of currencies and spend with a Wise debit card, which automatically uses the right currency balance or converts on the spot. Wise's strength is predictability: the fee is the same on a Tuesday as on a Sunday, and you see it before you pay.

How Revolut works

Revolut also converts close to the real exchange rate, and on its free plan many currency exchanges have no visible fee up to a monthly limit. Above that limit, and at weekends when currency markets are closed, Revolut adds a markup. Paid plans raise or remove those limits and add extras such as travel insurance on some tiers. Revolut suits travellers who like an all-in-one banking app and want to budget, split bills and lock the card from their phone.

Which should you pick?

• Choose Wise if you want the same transparent fee every time, travel often at weekends, or need to send money to someone abroad as well as spend it.
• Choose Revolut if your spending fits inside the free plan's monthly allowance and you'd use its budgeting and card-control features.
• Carry both if you can. Having a second card from a different provider is a sensible backup if one is lost, blocked or not accepted.

Cash withdrawals

Both cards let you withdraw a limited amount from ATMs each month without a fee from Wise or Revolut, then charge a fee above that. The local ATM operator may add its own charge on top, which neither app can refund. Withdrawing larger amounts less often usually works out cheaper than lots of small withdrawals.

The trap that costs the most: “Pay in your home currency?”

Card machines and ATMs abroad often offer to charge you in your home currency. This is called dynamic currency conversion, and the rate is almost always worse than the one your card would give you. Whichever card you use, always choose to pay in the local currency. That one habit often saves more than the choice between Wise and Revolut.

Fees and plan limits change from time to time, so check the current terms in each app before you travel. Ready to compare? See Wise and Revolut side by side.

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