Is swapping app a great new way to get cheap holiday money?

Why go to a bank for your holiday money when there's a whole country full of people you could swap with instead?

That's the premise of WeSwap, a new currency service that aims to give much better rates by cutting out the middlemen. Just sign up and pay in the amount you want to convert, and specify the currency you're after.
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WeSwap will then send you a pre-paid card that can be used in shops, restaurants and at ATMs. Meanwhile, the pounds you've paid over go to someone visiting the UK.

Your card can hold up to 16 currencies at once, from US dollars to Polish zlotys.

But just how good are the rates?

Customers who can persuade five friends to sign up are currently being offered commission-free money exchange for life. Otherwise, WeSwap charges 1.4% commission for instant transfers, 1.3% if you can wait three days and just 1% if you give a week's notice.

But the exchange itself is done at the mid-market rate - far better than that offered by most banks and exchange bureaus.

Right now, that means WeSwap customers are getting €69.88 for £50, fees included, for an instant transfer.

That's a far better rate than the current offerings from many high street names. The same amount would only net €60.72 from Telegraph Travel, €60.75 from RBS and €60.82 from Natwest, for example.

And the best rates we can find today are €66.44 from Barclays, €67.01 from P&O Ferries and €68.93 from Debenhams - all still worse than WeSwap.

However, there is a sting in the tail for WeSwap customers who aren't regular travellers. If you don't use your card for a year, the company will start charging a fee of £2 a month as long as the card remains inactive. There's also a £1.50 fee for any ATM withdrawals under £200.

WeSwap, in short, looks great for frequent travellers and big spenders, but for some could be more expensive than it first appears.

Some people, too, might find themselves put off by the company's London Underground advertising campaign earlier this summer.

"We can't swap your missus for a Swedish supermodel, but we can swap your money for her Krona," read one.

There was an outcry on Twitter and - you guessed it - the company swapped to some less-offensive ads.

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