If TransferWise were to fail, you would not be entitled to compensation (up to £85,000) from the Financial Services Compensation Scheme (FSCS) — this is a schem

If TransferWise were to fail, you would not be entitled to compensation (up to £85,000) from the Financial Services Compensation Scheme (FSCS) — this is a scheme that banks and building societies authorised by the Prudential Regulation Authority sign up to and fund. TransferWise is only registered with the Prudential Regulation Authority as an e-money service authorised to provide payment services. You can search the register at https://register.fca.org.uk https://register.fca.org.uk. In reality, they appear to hold the funds with Barclays so if TransferWise failed, you'd get the funds back. It's only if Barclays themselves became insolvent that you'd be out of pocket since you wouldn't be covered by the FSCS.