Wise Downgrades UK in G20 Scorecard as Brits Lose £10 Billion to Hidden Fees

Wise has downgraded the United Kingdom’s transparency rating in its latest G20 Cross-Border Payments Scorecard, citing a £9.8 billion annual loss to consumers from hidden exchange rate markups. For fintech leaders, this signal of stalled regulatory progress highlights a growing gap between the UK’s pioneering 2017 payment reforms and its current enforcement of transparency standards.

What was announced

The annual G20 Cross-Border Payments Scorecard evaluates nations on direct access to payment systems and price transparency. While the UK was the first to grant fintechs access to Central Bank settlement in 2017—expanding participants from 11 banks to 47, including 16 non-banks—Wise reports that momentum has plateaued. Specifically, the UK was downgraded from a 5/5 to a 4/5 transparency score.

The findings reveal that major UK banks continue to apply FX markups of 2-4% buried within exchange rates. This persists despite Financial Conduct Authority (FCA) guidance published in May 2025 aimed at curbing the practice. Consequently, UK consumers lose £9.8 billion to hidden fees in a single year, contributing to a £220 billion global problem identified across G20+ markets.

Furthermore, the report highlights a structural disadvantage for non-bank financial institutions. Despite the Bank of England acknowledging in April 2025 that the inability of non-banks to safeguard customer funds at the central bank creates a competitive disadvantage, no concrete action has been taken 17 months later. This forces firms like Wise to rely on commercial banks for safeguarding. With the UK set to chair the G20 starting in December and the 2027 deadline for the G20 cross-border payments roadmap approaching, the scorecard suggests the nation’s leadership on the global stage is at risk.

"UK policymakers have acknowledged the problem and confirmed that they’re exploring solutions. But while we wait, UK consumers are losing £9.8 billion in just one year to hidden fees and this figure is only growing. Real enforcement is necessary to protect consumers from this colossal unseen harm."

Magali Van Bulck, Chair at Wise.

The companies involved

Wise is a global technology company focused on building a better way to move money around the world. Headquartered in London, the firm operates a cross-border payments network that serves millions of individuals and businesses. The company, which maintains its primary digital presence at wise.com, has established itself as a vocal advocate for transparency in the foreign exchange market, frequently challenging the traditional banking sector's fee structures. FF News has tracked the company through nearly 100 significant market developments, noting its transition from a consumer-facing transfer service to a broad infrastructure provider.

The Bank of England, where Andrew Bailey serves, is the central bank of the United Kingdom. It has historically been a leader in payment system innovation, particularly with the 2017 decision to allow non-bank payment service providers (PSPs) to hold settlement accounts in the Real-Time Gross Settlement (RTGS) system. However, as the Wise report indicates, the relationship between the central bank and non-bank fintechs remains a point of regulatory friction, particularly regarding the direct safeguarding of funds. This tension exists within a broader G20 framework where nations are under pressure to meet specific targets for cost, speed, and transparency in international transfers by 2027.

What FF News has reported before

FF News has extensively tracked Wise’s global expansion and its efforts to integrate with national payment infrastructures. In late 2025, the company achieved a significant milestone by becoming the Wise Becomes First Non-Bank to Go Live on Japan's Zengin System via API and Settle Directly With Bank of Japan. This followed a deepening of its B2B footprint, including an Aspire Launches Fast, Low-Cost International Payments in Hong Kong, Expanding Partnership With Wise Platform. More recently, Wise has diversified its product suite, Wise Launches All-in-One Chequing Account in Canada to Simplify Borderless Banking and joining the Wise Joins MENA Fintech Association to Revolutionize Cross-Border Payments Across the Middle East to influence payment standards across the Middle East.

What this means

The downgrade of the UK’s transparency rating serves as a warning that early regulatory innovation does not guarantee long-term market efficiency. While the 2017 reforms were world-leading, the persistence of multi-billion pound "hidden" fees suggests that guidance without enforcement is failing to move the needle. This puts traditional banks under increasing scrutiny as the 2027 G20 deadline nears. The industry now faces a critical question: will regulators move beyond "exploring" solutions to mandate the use of mid-market rates? Failure to do so may see the UK lose its status as the primary blueprint for fintech-friendly central banking.