HSBC Introduces Zing, a New International Transfer Product to Compete with Fintech Giants

According to Bloomberg, HSBC has recently launched a new product called Zing with the aim of competing with popular fintech companies such as Wise (formerly known as TransferWise) and Revolut. While the app was announced a few days ago, it has now officially hit the App Store and Play Store. Let’s delve into what HSBC offers with Zing and determine if it truly stands out in the competitive world of global transfers.

Separate from Traditional Banking Products

Zing is distinct from HSBC’s existing banking products, making it a unique addition to their services. The best part? You don’t even need an HSBC bank account to use Zing, making it accessible to a wider audience.

Transparency in Foreign Exchange

Zing also takes a different approach to foreign exchange by being transparent with fees. Users can easily view the current exchange rate and conversion fees within the app or on Zing’s website at any time.

“Today HSBC charges their own customers 3.7% in hidden FX markups for ‘free’ Euro transfers,” Wise CEO Kristo Kaarmann wrote on X.

This openness regarding fees is a significant departure from HSBC’s usual banking products, which often include hidden FX markups when converting one currency to another.

Multi-Currency Support

Zing currently offers support for ten different currencies, including GBP, EUR, SGD, USD, CAD, JPY, NZD, HKD, AUD, and AED. However, for now, the service is only available to customers living in the U.K.

Upon opening an account, users can fund their GBP wallet through open banking, bank transfers, or debit card payments. Interestingly, EUR wallets also come equipped with bank details, allowing Zing customers to receive SEPA payments directly into their wallets. This feature will be particularly useful for British individuals living temporarily or permanently in Europe.

Wise offers a similar service, with customers being able to get local bank details for receiving money from a dozen countries, making it a more advantageous offering compared to Zing.

Revolut: A Rivalry in Terms of Bank Details

Revolut, on the other hand, only offers bank information in the user’s local country. As mentioned on their support page, “As an existing customer, if your new residency country has a Revolut branch, you’ll need to close your account and reopen it again as a new one if you wish to hold a local IBAN of that country.”

Sending Money Made Easy

Zing supports dozens of currencies, more than the ten listed above. Users can simply enter the bank information of the recipient and seamlessly transfer funds in their local currency.

Cost Comparison

When it comes to exchange rates, Zing proves to be cheaper than HSBC. For instance, Zing charges a 0.6% exchange fee when converting GBP to EUR, whereas, for the same transaction, Wise charges around 0.45%.

Revolut’s fees vary depending on the subscription plan, with free accounts having an exchange limit of £1,000 per month, after which a 1% fee is charged. Plus accounts can exchange up to £3,000 per month without any fees and are charged 0.5% after that. Premium, Metal, and Ultra customers do not have any exchange fees, but pay a monthly subscription fee ranging from £7.99 to £45. Also, note that Revolut charges a 1% markup fee on foreign exchange during weekends, regardless of the subscription plan.

Zing, however, has different fees for other currencies. For instance, while the exchange fee for converting USD to GBP is 0.6%, the company charges 0.75% for USD to EUR transfers.

“What I like about Zing’s fee is that you mostly focus on that exchange fee. Pretty much everything else is included,” mentioned the author.

Users can enjoy incoming bank payments for free and outgoing bank transfers with no added charges apart from the conversion fee. For example, if a USD to EUR conversion is done through Wise, users only have to pay 0.552% in conversion fees. However, there are additional fees for incoming ACH or wire transfers in USD.

Additional Benefits

Customers using Zing also get a Visa debit card that can be used with any currency wallet without incurring any fees. But, if Zing has to convert money from another wallet because the balance in the local wallet is insufficient, the company will add a 1% currency conversion fee on top of the Visa’s exchange rate, making it quite expensive in certain circumstances.

The Verdict

In conclusion, Zing provides a compelling alternative to Wise, with some transactions being slightly more expensive and some being cheaper. It will be interesting to see if HSBC plans to keep these low exchange fees for the long run or if they are purely introductory rates.

It’s worth noting that Zing’s coverage is currently limited, with only people living in the U.K able to use it. However, expats and frequent travelers will certainly appreciate the entrance of a new player in this field.