Wise vs PayPal: A Full Comparison – 2024
If you need to send a payment to someone overseas you might be trying to figure out which will work best, between Wise and PayPal. While both have speedy transfers to a good range of countries, the way a Wise vs PayPal payment works is quite different – and so are the fees.
Join us as we walk through how they both compare on international transfers, plus the additional features you might be interested in like multi-currency accounts, card services and business products.
Summary: Wise offers international transfers to 160+ countries, and multi-currency accounts for convenient card spending, currency exchange and ways to receive payments for yourself and your business. PayPal allows customers to send money to others globally, for deposit into PayPal accounts. If the recipient wants to withdraw their money to a bank, they’ll need to initiate this, and may need to wait a few days. Wise uses the mid-market exchange rate for transfers, with fees from 0.43%. PayPal adds 4% to exchange rates, and charges a transfer fee of at least 5%
Wise vs PayPal: side by side
While Wise and PayPal are both great companies, they’re a bit different in their focus and how they work. Each service also has its own fees and exchange rates, as well as some unique features.
We’ll get into the details of how Wise vs PayPal work in a moment, but to give a flavour, here’s an overview of Wise vs PayPal side by side, looking at available features.
| Feature | Wise | PayPal |
|---|---|---|
| Service availability | Online and in app | Online and in app |
| Multi-currency account | Hold and convert more than 40 currencies – for personal and business customers
Debit card available, plus local receiving accounts for 10 currencies |
Hold, convert and receive around 25 currencies |
| Send money to | More than 160 countries | PayPal accounts globally |
| Pay in options | Bank transfer, card or wallets like Apple Pay | Bank transfer or card |
| Payout options | Deposit to bank account, mobile money account deposits available in some countries | Deposit to PayPal accounts |
| Transfer fee | From 0.43% | 5% (0.99 AUD – 5.99 AUD) transfer fee when sending with bank account or PayPal balance
Additional fee of 2.6% + fixed fee applies if you pay by card |
| Transfer speed | 50% of payments are instant, 90% arrive in 24 hours | Transfers are deposited to PayPal accounts instantly. If the recipient wants to withdraw funds to a bank, this may take a day or two |
| Exchange rates | Mid-market rate | Exchange rates include a markup of 4% |
| Regulated | Y | Y |
| Open a business account | Y | Y |
So, to summarise:
- Wise and PayPal are both available in app and online
- Wise offers international accounts and cards for personal and business customers – PayPal Australia lets customers hold, exchange and receive around 25 currencies, but there’s no available debit card
- Wise currency exchange uses the mid-market rate with fees from 0.43% – PayPal uses an exchange rate which includes a 4% markup
- Wise supports bank transfer and card payments for deposits to bank and mobile money accounts, PayPal transfers are deposited into PayPal accounts only
- Wise transfer fees start from 0.43% – PayPal charges 5% (0.99 AUD – 5.99 AUD) transfer fee when sending with bank account or PayPal balance – an additional fee of 2.6% + fixed fee applies if you pay by card
- Wise payments to banks can be instant – PayPal transfer times to PayPal accounts are instant, but if the recipient then wants to withdraw money to a bank it may take a day or two
- Wise and PayPal both offer business accounts and services
- Both providers are fully regulated, in Australia and elsewhere in the world
Read more on how to send money from PayPal to Wise
The important bits
Here’s a comparison of Wise vs PayPal on key features including fees, safety and speed, which may help you decide which is right for you:
| Wise | PayPal | |
|---|---|---|
| Rates | Mid-market exchange rate | Exchange rates include a 4% markup |
| Fees | Free to spend currencies you hold with your Wise card
No monthly charges
Transaction fees apply – from 0.43% for currency exchange and international transfers |
Domestic transfers and spending is often free
For international payments, there’s a 5% (0.99 AUD – 5.99 AUD) transfer fee when sending with bank account or PayPal balance, plus an additional fee of 2.6% + fixed fee if you pay by card |
| Speed | 50% instant, 90% same day | Funds are deposited instantly to PayPal accounts – withdrawing to a bank may take a day or two |
| Service | Desktop browser and mobile app | Desktop browser and mobile app |
| Safety | Fully regulated and licensed | Fully regulated and licensed |
| Reviews (TrustPilot) | 4.2, Great, 204,000+ reviews | 1.3, Bad, 27,000+ reviews |
To summarise:
- Rates: Wise uses the mid-market rate, whereas PayPal applies a 4% markup to the rates used
- Fees: Wise accounts have no monthly fees, with currency exchange and transfer from 0.43%; PayPal fees start from 5%, with additional costs if paying by card
- Speed: Wise transfers may arrive instantly, and 90% arrive in 24 hours, PayPal transfers are instantly deposited into PayPal accounts, but may take time if withdrawn to a bank
- Service: Both providers have online and in-app services
- Safetly: Both providers are fully regulated and licensed
- Reviews: Wise has a Great rating on Trustpilot from 204,000+ reviews, PayPal isn’t active on Trustpilot particularly, although it has a verified account with a 1.3 Bad rating
Pros and cons
| Wise | PayPal |
|---|---|
| ✅Multi-currency accounts to hold 40+ currencies ✅ Payments to 160+ countries ✅ Local receiving account details for 10 currencies ✅ Payment cards for use in 150+ countries ✅ Mid-market exchange rates |
✅ Send payments globally from Australia
✅ Pay by card, with a linked bank account, or from your PayPal balance ✅Huge user base |
| ❌ Some service fees apply ❌ No physical location for face to face services |
❌Exchange rates include a 4% markup
❌Transfers cost at least 5%, more if you pay by card |
Wise vs PayPal: The verdict
PayPal and Wise both offer ways to send money overseas, but the services are quite different. That’s because PayPal is primarily a payment platform for online shopping, whereas Wise started out as a service for international payments. The focus of the companies is a little different, and so their services may appeal to different customers.
PayPal has an impressive global reach and a huge user base. However, for any international transactions, the range of fees you might meet is pretty broad – which can mean the costs are very high overall. As well as a transfer fee of at least 5%, there’s a 4% currency conversion fee which pushes up the costs even more. Funds are deposited to PayPal accounts – if your recipient needs to then withdraw to a bank they may need to wait a few days or pay an extra fee for an instant withdrawal, depending on where in the world they are.
Wise offers international transfers to bank accounts in 160+ countries, which can be deposited instantly, and which have low fees from 0.43%. Wise uses the mid-market exchange rate with no markup – currency conversion costs are split out so you can easily see what you’re paying for the services you need.
About Wise and PayPal
Wise: Wise was founded in the UK in 2011, and offers low cost cross border transfers, multi-currency account services, debit cards and business products. Today, Wise has over 16 million customers globally, and has maintained its focus on offering mid-market rate currency conversion and speedy payments. All Wise services are delivered online and in app, with transparent fees and low overall costs.
PayPal was founded in 1998, and has over 400 million customers globally. You can send payments all over the world from one PayPal account to another. You can also open PayPal business accounts which are popular with merchants selling online including everything from people starting side hustle businesses, through to enterprise level organisations.
How do they work?
It’s helpful to know that Wise and PayPal work a bit differently when it comes to sending a payment overseas. In particular, a PayPal transfer will be deposited to your recipient’s PayPal account – rather than their bank account. If your recipient then wants to move the money to their bank this may take a day or two, depending on where in the world they are. Alternatively, they can leave the balance in PayPal and use it next time they want to spend online or send a payment themselves.
Both Wise and PayPal make it easy to send a payment internationally. With Wise you’ll need to register online or in the Wise app, to send overseas payments or to open a multi-currency account for 40+ currencies, which comes with an optional debit card. You can pay for overseas transfers using a local payment from your bank, or with a card, which is usually cheap or free. If you have a balance in your Wise account you can also pay with that. In any case, Wise will convert to the required currency with the mid-market rate and deposit the funds to your recipient’s bank or mobile money account, often instantly.
With PayPal you’ll be able to send to other PayPal accounts globally with just the recipient’s email address or phone number. You can pay from your PayPal balance or linked bank account – which is the cheaper option – or with a card, which incurs higher fees. Funds are moved instantly to the recipient’s PayPal account in most cases.
Wise vs PayPal fees
Wise and PayPal approach fees in different ways. Here’s a rundown of the typical costs you’ll need to know about:
| Service | Wise fee | PayPal fee |
|---|---|---|
| Ongoing fees | No fee to open a Wise personal account, no ongoing fees | No fee to register |
| Card fee | 10 AUD | Not applicable |
| Spend currencies you hold | No fee | Not applicable |
| Spend currencies you don’t hold | From 0.43% | Not applicable |
| ATM fee | 2 withdrawals to the value of 350 AUD/month free, then 1.5 AUD + 1.75% | Not applicable |
| Currency conversion – within account or when sending a payment | From 0.43% | 4% |
| Overseas transfers | From 0.43% | 5% (0.99 AUD – 5.99 AUD) transfer fee when sending with bank account or PayPal balance
Additional fee of 2.6% + fixed fee applies if you pay by card |
Fees correct at time of writing – 16th January 2024
Read more about Wise fees here
Wise vs PayPal: which is cheaper?
It always pays to shop around before sending international payments to make sure you get the lowest cost and most convenient service available.
Wise payments use the mid-market exchange rate with transparent fees. There’s also a comparison tool you can use on the Wise website to see if Wise is cheapest for your transfer. If it’s not, you’ll be notified.
PayPal fees depend on how you pay, and whether or not currency conversion is needed. If you pay with a card and need currency conversion, your transfer will include 4 fees:
- Transfer fee (5%, up to 6.99 AUD)
- Funding method fee (2.6%, not capped)
- Fixed fee (low charge based on currency)
- Conversion fee (4%, not capped)
All in all, that can end up being a pretty costly way to send your payment.
Wise vs PayPal exchange rates
Wise uses the mid-market rate for currency exchange – the same one you’ll find on Google or using a currency conversion tool. All the costs you need to pay are shown separately so you can easily compare and check the total amount.
PayPal uses a 4% exchange rate markup when arranging international transfers, or when you convert currencies in your account. This markup is a fee, but it’s not easy to spot. Be sure to compare the overall costs of providers to decide which suits you best, including transfer fees, funding fees and conversion costs.
Wise vs PayPal: which is faster?
50% of Wise payments to bank accounts internationally are instant, 90% arrive on the same day – although the exact delivery time can depend on factors including the destination country, and the recipient’s bank processing times.
PayPal payments are often deposited instantly into the recipient’s PayPal account. If the recipient then wants to withdraw the money to their bank they may need to wait a day or two, or pay an extra fee for an instant withdrawal. The options, and the costs involved, depend on where in the world your recipient is.
Wise vs PayPal international transfer limits
Wise has limits for both personal and business customers which can vary based on destination country – usually around 1 million GBP or the equivalent.
PayPal limits may vary based on your account type, how you’ve verified it, and how you use it. You’ll be shown your limits in the PayPal app, and notified if you ever exceed a limit.
Ease of use
- Creating an account: Create your account online or in-app with both PayPal and Wise
- Making a transfer: Wise and PayPal both let you pay for a transfer using a balance, by bank transfer or card
- Ways to send money: Send payments to your recipient’s bank account or to a mobile money wallet with Wise. PayPal transfers are sent to other PayPal accounts only
- Languages: Wise offers 15 languages, plus multi-lingual support services, PayPal offers global support services in a selection of languages
- Minimum & maximum amounts: Wise sending limits can vary by destination country, and based on your account type. PayPal doesn’t publish account limits, but you’ll be notified if a transaction would exceed your account limit
Supported currencies
PayPal supports transfers to other PayPal accounts globally, in 25 currencies. Wise supports 40+ currencies, and lets you send payments to over 160 countries.
Safety
Both PayPal and Wise are safe to use, and fully regulated for the services they offer. As global businesses, they’re both overseen by a selection of bodies, including ASIC and AUSTRAC in Australia, and other bodies such as the FCA in the UK.
Wise vs PayPal customer service
Wise customer service is primarily delivered through in-app chat, which is available in a selection of languages, 24/7. You can also email the team if you’d prefer – log into your Wise account to check which is the best way to connect with customer services based on your specific issue.
PayPal has service options including in app chat, community sources solutions and phone services.
Conclusion: Comparing Wise and PayPal
PayPal and Wise both offer convenient ways to make online and in-app international payments, but the way each provider works – and the fees involved – vary a lot.
You can send to bank accounts and mobile money wallets with Wise. PayPal transfers are deposited to PayPal accounts only. Withdrawing to a bank account could then involve an extra fee depending on where in the world your recipient is, and how quickly they need their money.
If you’re sending a payment and need currency conversion, Wise uses the mid-market rate with conversion costs from 0.43%, which are split out for transparency. PayPal uses a 4% currency conversion fee.
PayPal also has several potential different transfer costs depending on how you want to pay. Using a linked bank account or PayPal balance is the cheapest option, but paying by card comes with extra costs.
PayPal accounts can hold and exchange around 25 globally currencies. Wise offers multi-currency accounts to hold 40+ currencies, and linked debit cards for spending and withdrawals globally.
Use this Wise vs PayPal guide to compare your options, and to get a fee quote for your specific transfer, to see which suits best.
FAQ – Wise vs PayPal
What is the difference between Wise and PayPal?
Wise and PayPal are both great global businesses, but they have different specialty areas. PayPal domestic transactions are usually cheap or free, but international services can be pretty expensive. Wise is a specialist in international transactions, which could mean it’s cheaper for you. Learn more about each provider in this handy guide.
Which is better: Wise or PayPal?
PayPal and Wise have their own features and fees, so you’ll need to compare both using this guide to see which is best for you. PayPal is a strong option for local transactions, but you might find Wise is cheaper if you’re spending or sending a foreign currency.
Is Wise or PayPal cheaper?
It’s important to shop around before you confirm your transaction to make sure you get the best deal. Wise uses the mid-market rate for currency conversion, with fees from 0.43%. PayPal transfer fees start from 5%, and currency conversion costs 4%.
Is Wise or PayPal faster?
50% of Wise payments are instant, 90% arrive on the same day. PayPal payments are deposited to other PayPal accounts instantly – but withdrawing to a bank may then take a day or two.
How many currencies do Wise and PayPal support?
PayPal supports payments in about 25 currencies, globally. Wise supports 40+ currencies, and lets you send payments to over 160 countries.
