The news: Wise launched quasi-current accounts in the UK, positioning them as a banking product for frequent travelers, not just the international transfers that the company is known for.

Wise also announced an airport lounge pass purchase feature and “young explorer” cards for kids linked to parents’ accounts.

Zoom out: The new Wise account is not a true current account—funds are not guaranteed to be FSBS insured—but they are separate from Wise’s own assets and predominantly deposited at large financial institutions. Customers can set up direct debits to pay for bills and have a debit card for spending.

Trendspotting: Wise’s accounts compete with the giant UK neobank Revolut. The two overlap on international money-transfer features and now current accounts in the UK.

Wise says its UK account supports more than 40 currencies and transfers to 160 countries and territories. Revolut says UK customers can hold up to 36 currencies, spend in more than 150, and send money to more than 160.

Implications for banks: Banks should read Wise’s account as a play for customer engagement and a risk to their deposits. As international money movement evolves into a broader set of banking features, it may prompt silent switching. For frequent travelers, Wise may make itself a compelling alternative to high street banks as it releases more features for its UK accounts.

The onus is on incumbents to revisit their international money transfer capabilities—a weakness that has enabled the rise of currency-transfer apps—and related features. Travel credit cards have historically been the FI’s solution to serving frequent travelers, but more richly featured apps designed for international travel may take lucrative market share.