HSBC has recently introduced a new product called Zing, which is specifically designed for international transfers. This move is aimed at enhancing its competitiveness against fintech companies such as Wise (formerly TransferWise) and Revolut.
Key Takeaway
Zing, HSBC’s new international payments app, offers a transparent approach to foreign exchange and supports multiple currencies. While it presents a compelling alternative to Wise and Revolut, its coverage is currently limited to the U.K. The service’s competitive fee structure and Visa debit card feature make it an attractive option for expats and frequent travelers.
Transparent Approach to Foreign Exchange
Zing offers a different approach to foreign exchange compared to traditional banking products. It provides transparency in terms of fees, allowing users to view the exchange rate and conversion fees at any time through the app or Zing’s website.
Supported Currencies and Account Access
Zing customers can hold money in their account in ten different currencies. However, the service is currently limited to customers residing in the U.K. Upon opening an account, customers can top up their GBP wallet using various methods, including open banking, bank transfers, or debit card payments. Additionally, EUR wallets come with bank details, enabling Zing customers to receive SEPA payments directly to their EUR wallet, which is beneficial for individuals working in Europe.
Comparison with Wise and Revolut
While Zing’s offering is competitive, Wise provides local bank details for receiving money from a dozen countries, which gives it an advantage. On the other hand, Revolut only offers bank information in the user’s local country, requiring customers to close and reopen their account if they wish to hold a local IBAN in a different country.
When it comes to sending money, Zing supports a wide range of currencies, offering a more extensive selection than the ten currencies supported for account holding. In terms of exchange rates, Zing is more cost-effective than HSBC, with lower fees for currency conversion compared to both Wise and Revolut.
Fee Structure and Visa Debit Card
Zing’s fee structure primarily focuses on the exchange fee, with incoming bank payments being free and outgoing bank transfers incurring no additional costs apart from the conversion fee. Customers also receive a Visa debit card that can be used with any currency wallet, with no fees for card payments as long as the wallet has a sufficient balance. However, currency conversion fees are applied if Zing needs to convert money from another wallet due to insufficient funds.
