If you are a freelancer or someone who frequently needs to send and receive payments internationally, you are likely familiar with Wise and DolarApp. Both platforms are leaders in the fintech market thanks to three key aspects: low costs, speed, and security.

These features are crucial, therefore, determining the best alternative—Wise or DolarApp—is something you undoubtedly want to resolve.

Today, we will make a straightforward and completely transparent comparison. We aim to provide you with all the information so you can choose the option that best suits your needs.

Wise vs. DolarApp: Which is Better in Mexico?

Wise and DolarApp: What Are They, and How Do They Work?

Before comparing Wise and DolarApp services, we need to understand what each one is.

• DolarApp is a company that offers a digital dollar account for Latin America. It currently operates in Mexico, Argentina, and Colombia.  

This allows you to buy and sell digital dollars without commissions and at the best exchange rate of the day. Everything is managed via the app, and you receive your balance in minutes.

Of course, you can also send and receive payments internationally, obtain a physical and digital card, among other features that we will explain later.

• Wise, formerly known as TransferWise, is a fintech that provides multi-currency accounts for sending and receiving money from different parts of the world. You can hold balances in USD, EUR, GBP, among others. Although you cannot have a balance in Mexican Pesos, you can perform conversions to your local currency. 

Wise also offers a physical card that can be used in online stores.

Having clarified this, let's move on to the comparison. We will look at Wise prices, DolarApp commissions, and also evaluate each app.

Wise vs. DolarApp: Definitive Comparison

When choosing between Wise and DolarApp, it is important to evaluate key aspects of each platform. Depending on your needs, one may be a better alternative than the other, and to find out, we have analyzed the following sections:

Wise vs. DolarApp: Which one charges less for receiving payments from the US?

With DolarApp Mexico, there are no complex fee structures. Everything is clear and straightforward. You only pay a $3 USD fee per transaction. 

However, you should also consider the exchange rate from digital dollars to Mexican pesos (MXN). In this regard, DolarApp has a slightly higher rate, which is advantageous for receiving more pesos.

• Currently, the exchange rate on DolarApp is 1 USDc = $18.01 MXN. So, if you send 5,000 USD from the US to Mexico, the recipient gets $89,995.97 MXN (4,997 x 18.01). Remember to subtract the $3 USDc commission.

In contrast, Wise Mexico also has transparent fees, but you need to pay two, not one like with DolarApp. This means you end up receiving less.

• The exchange rate on the Wise App is 1 USD = $17.94 MXN. Right off the bat, with a lower rate, you'll receive fewer pesos in your local account.

But imagine you're working for a foreign company, and they send you a payment of 5,000 USD. With the Wise exchange rate and their fees, you would end up receiving $88,888.215 MXN. That's over a thousand pesos less than with DolarApp.

And the reason lies in their two fees:

• Bank account connected fee (if ACH): $13.96 USD

• Wise fees: $31.29 USD.

In total, $45.25 USD will be deducted from the 5,000 USD, which affects your final amount.

This calculation assumes the fee for ACH, as Wire transfers would cost $6.11 USD. Lower amounts might incur different fees, especially if you use a credit card, which comes with a fee of $68.21 USD.

Let's clarify this with the following comparison table.

Comparative Table: Wise vs. DolarApp for Receiving Payments

Wise vs. DolarApp: Services Offered by Each

Both platforms offer services and benefits that any user in Mexico can take advantage of. However, DolarApp Mexico has an edge in this aspect, as Wise has several limitations for Mexico. Below is a table detailing the differences:

Pros and Cons of Wise vs. DolarApp

After reviewing what each offers, it's clearer which has more advantages and disadvantages for Mexican users. While Wise is a great platform, it does not provide all its services in Mexico as it does in other countries.

Pros of DolarApp Mexico:

• You can use the card at local establishments.

• Fixed rate for sending and receiving payments.

• Manage a good exchange rate.

• Using the app, you can split bills with friends.

• Offers cashback when paying with the card.

• Transactions between DolarApp users are free.

Pros of Wise Mexico:

• You can send money in over 20 different currencies.

• Transactions between Wise users are free.

Cons of DolarApp Mexico:

• You can only hold digital dollars

• Transactions with the card also have a commission.

Cons of Wise Mexico:

• Does not offer a card for Mexicans.

• You cannot exchange Mexican pesos (MXN) to dollars (USD).

• Charges two commissions for sending money.

Wise or DolarApp: Where Is Your Balance Safer? 

Neither Wise nor DolarApp are banks that work with fractional reserve. Both companies are known as electronic money entities, meaning they use the safeguarding method to secure your balance.

This means that neither company uses its clients' balance to manage their own expenses.

Additionally, DolarApp Mexico is approved by SAT to operate with virtual assets. Wise, on the other hand, is regulated by FinCEN in the United States or the FCA in the United Kingdom.

Wise vs. DolarApp: Comparing Their Cards

At this point, there isn't much to say about Wise's card, as this service is not offered to Mexican residents. You can check this in the Wise App under the "Cards" section, which will indicate that it is not available in Mexico.

Here, the advantage is for DolarApp. You can request a virtual or physical card and make purchases in the best stores in the US that ship to Mexico. But let's see the details of this card:

DolarCard

• Network: Mastercard

• 3D Secure: Yes

• Contactless: Yes

• Monthly Fee: None. There are no monthly fees or minimum consumption.

• Shipping Cost: $4.99, but if your balance is over 100 USDc it is free.

• Security: 3DS in-app and tokenisation.

• Compatible with Apple Pay and Google Pay: Yes

• Cash Withdrawals: 1% on the amount you withdraw.

DolarCard: Usage Costs Abroad 

You can go anywhere in the world and use the balance you have in your DolarApp account, which backs your card.

Although the balance in the app is in USDC, you can pay in any currency. There are no additional costs or hidden fees when paying at establishments.

The only thing you need to be aware of is the exchange rate of the day. Just before making the transaction, you can enter the app and see the exchange rate.

Wise App vs. DolarApp: Which is the Best Application? 

To evaluate this, nothing better than the opinions of customers and users of each app. DolarApp has an average of 4.6 stars out of 5 on Google Play Store, in over 4,000 comments.

Users highlight the ease of changing digital dollars to pesos and vice versa, as well as the competitive exchange rates.

Meanwhile, on the App Store, the DolarApp application also maintains a sustained rating of 4.5 stars.

Wise App, with much more time in the market, has a broader base of opinions. However, it also maintains a solid score of 4.5 stars out of 5. This occurs both on the App Store and on Google Play. Without a doubt, both applications meet the criteria of providing a good user experience and being easy to use.

Wise vs. DolarApp: Final Verdict

Both options are very interesting, but if you want to get freelance work to receive payments from abroad...

DolarApp is the best option. And as we have seen in the article, Wise does not offer its full potential to the Mexican public. It lacks a card, you cannot exchange pesos for dollars, and many currencies of its multi-currency account are restricted.

On the other hand, using DolarApp gives you all the advantages of an international card, better exchange rates, fixed rates...

And you can send and receive payments from abroad. Additionally, if you opt for DolarApp Premium, you gain access to 4% annual profit and 1% cashback when you use your card at Mexican stores.

However, you can make your own evaluation and choose the account that best fits what you are looking for.

• Note: Exchange rates were taken from each platform on July 08, 2024. The image was taken from Wise on July 09, 2024.