The competition to offer customers something for nothing is hotting up in the fintech world. HSBC, undeterred by a race to the bottom in payments fees, is going after the technology disrupters by launching Zing, an app that allows fee-free international money transfers for non-account holders.
That puts the bank into direct competition with the likes of Wise and Revolut as it aims to capture a share of the two fintechs’ rapid customer growth. The threat sent London-listed shares in the former down as much as 6 per cent on Tuesday.
Wise was already scraping the barrel on what it charges customers to move money across borders: it boasted of fees eight times cheaper than traditional banks when it came to market in 2021 and an eventual goal of free payments. But its charges have barely budged since. HSBC, on the other hand, is already offering fee-free transfers to existing customers though its Global Money account. Increased competition should push Wise towards its ultimate goal faster but shareholders will pay.