Peer-to-Peer vs Bank
Lauren wants to send $1000 to her mother in the UK. In order to find the best possible money transfer deal, she compares the services offered by her ‘big four’ bank with a peer-to-peer money transfer service like Wise or CurrencyFair. The results can be seen in the table below.
Cost to send a $1,000 | Bank | Peer-to-peer money transfer service |
---|---|---|
Amount transferred | $1,000 | $1,000 |
Exchange rate | £0.52 | £0.55 |
Fee charged | $25 | $2 |
Amount received | £507 | £548.90 |
As can be seen in the example above, if Lauren sent her funds using a peer-to-peer service she would be sending an extra £41.90.