UK Loses $13 Billion in Hidden Fees, Wise Reports
Wise, a global fintech company, released its G20 Cross-Border Payments Scorecard, highlighting significant price transparency issues and direct access disparities among member nations. The report points to a credibility challenge for the UK’s upcoming G20 presidency, as the country pioneered payments system reform in 2017 but has yet to complete the initiative.
In 2017, the UK became the first jurisdiction to permit non-bank payment service providers direct access to central bank settlement accounts. This reform expanded system participants from 11 banks to 47 institutions, including 16 non-banks. Despite this early progress, non-bank providers such as Wise cannot safeguard customer funds directly at the Bank of England. Instead, they rely on commercial bank competitors, creating operational dependencies and limiting their competitiveness.
Magali Van Bulck, Head of Policy EMEA for Wise, noted that major providers continue to obscure costs through exchange rate markups, even after the Financial Conduct Authority issued guidance in May 2025. According to the report, UK consumers lost £9.8 billion, or approximately US$12.8 billion, in a single year due to these hidden fees. Van Bulck emphasized that while policymakers have acknowledged the problem, meaningful enforcement remains absent, leaving consumers exposed to what she described as “colossal unseen harm.”
Transparency Gaps Across Markets
The scorecard reveals that no G20 nation achieved a top rating for transparency in 2026. Wise’s mystery shopping research found that some major UK banks embed exchange rate markups of up to 4% within their rates, despite regulatory guidance aimed at eliminating such practices. Half of the 30 jurisdictions analyzed received a score of one or zero out of five, with disclosure frameworks failing to isolate foreign exchange markups as distinct costs. Consumers often see a transaction fee but remain unaware of embedded expenses, making comparisons between providers difficult. The UK, which scored perfectly for direct access, missed a top transparency rating despite being among seven G20+ markets with disclosure regulations.
G20 Leadership and Implementation Deadlines
According to Wise’s analysis, the UK’s role as G20 chair from December presents an opportunity to demonstrate tangible reform. With the cross-border payments roadmap targeting completion by 2027, policymakers must shift from policy papers to measurable outcomes. Implementation expectations should prioritize full upfront disclosure of international payment costs, ensuring consumers understand expenses before initiating transactions. Direct access to payment systems for regulated non-banks remains a critical focus, as current dependencies on commercial banks hinder competitive parity.
Magali Van Bulck emphasized that the UK must uphold its transparency guidance, particularly as the Financial Conduct Authority’s May 2025 recommendations remain unenforced. “With the UK chairing the G20 from December, we need to lead by example, not just by convening, but by delivering,” she stated to FinTech Magazine. This leadership imperative aligns with Wise’s call for reforms that customers can directly feel, moving beyond theoretical frameworks to actionable changes.
Strategic Partnerships Advancing Solutions
Wise collaborates with key financial technology partners to enhance cross-border payment capabilities. Swift, connecting over 11,500 global institutions, integrates its Correspondent Services solution with Wise’s platform, enabling faster and more transparent payouts. This partnership allows banks to retain existing infrastructure while leveraging Wise’s network for improved transaction speeds. Similarly, Thought Machine’s Vault Core system integrates seamlessly with Wise Platform, empowering financial institutions to offer robust cross-border payment features through cloud-native technology.
Monzo, a leading UK digital bank, exemplifies this integration by embedding Wise’s platform directly into its ecosystem. This partnership enables millions of Monzo users to send international payments in multiple currencies, reflecting a growing trend of fintech collaborations aimed at reducing friction and costs. Such alliances highlight the industry’s potential to drive systemic improvements, contingent on regulatory support and proactive implementation.
