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Software · head to head

PayPal vs TransferWise

PayPal logo

PayPal

Software

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
TransferWise logo

TransferWise

Software

The cheapest way to send money abroad

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only TransferWise has a free tier, so it costs nothing to try first.
  • Each has a real cost: PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios; TransferWise wise Card only available in selected countries, excluding major markets like UK
  • They diverge on capability: PayPal covers Payment processing, TransferWise covers International transfers.

Where they differ

Only the attributes on which PayPal and TransferWise actually diverge.

Attributes where PayPal and TransferWise differ
AttributePayPalTransferWise
Starting price$29/monthFree
Pricing modelusage-basedUnknown
Free tierNoYes
PlatformsWeb, Ios, Android, ApiWeb, iOS, Android
Founded19982011

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in PayPal

  • Payment processing
  • PayPal Checkout
  • Invoicing
  • Business debit card
  • Working capital loans
  • Shopify
  • WooCommerce
  • BigCommerce

Only in TransferWise

  • International transfers
  • Real exchange rates
  • Currency conversion
  • Multi-currency accounts
  • Bank accounts
  • IOS support

Both cover

  • Web support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

PayPal

  • Paying online merchants without sharing card detailsnot TransferWise
  • Sending money to friends and family domestically and internationallynot TransferWise
  • Holding balances in multiple currencies for cross border purchasesnot TransferWise

TransferWise

  • Budget Managementnot PayPal
  • Expense Trackingnot PayPal
  • Investment Trackingnot PayPal

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

TransferWise

  • Wise Card only available in selected countries, excluding major markets like UK
  • Mid-market rate is still 0.33-0.5% plus spreads higher than interbank rates
  • Business accounts have additional requirements and higher minimums

Pricing, plan by plan

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

TransferWise

Free
  • Personal AccountFree
    • Free account opening
    • Transfer in 40+ currencies
    • Mid-market exchange rates
  • Transfer fees$undefined/per-transfer
    • Transparent fees shown upfront
    • Average total cost 0.5-1%

Which should you pick?

Choose PayPal if

  • You need payment processing.
  • You work on Web, Ios, Android, Api.
  • You also want paypal checkout.
PayPal review

Choose TransferWise if

  • You need international transfers.
  • You want to start without paying.
  • You work on Web, iOS, Android.
  • You also want real exchange rates.
TransferWise review

Questions people ask

Is PayPal or TransferWise better?
Neither clearly leads. PayPal starts at $29/month and TransferWise at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or TransferWise?
TransferWise has a free tier; the other does not. Paid plans start at $29/month for PayPal and Free for TransferWise.
Does PayPal or TransferWise run on more platforms?
PayPal runs on Web, Ios, Android, Api. TransferWise runs on Web, iOS, Android.
Can I use TransferWise for free?
Yes. TransferWise has a free tier, so you can try it without paying. PayPal starts at $29/month.
What is PayPal best used for?
PayPal is most often used for paying online merchants without sharing card details, sending money to friends and family domestically and internationally, holding balances in multiple currencies for cross border purchases. Of those, paying online merchants without sharing card details and sending money to friends and family domestically and internationally are not what TransferWise is typically brought in for.
What can PayPal do that TransferWise cannot?
PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. TransferWise covers International transfers, Real exchange rates, Currency conversion, Multi-currency accounts. Both handle Web support, Android support.

Answered from the vendors’ own pages

TransferWise: How much does Wise charge for transfers?

Wise charges a small fee (typically 0.33% to 0.5% of transfer amount) plus shows you the mid-market exchange rate. Total costs are usually 0.5-1% compared to banks charging 3-6%.

Source
TransferWise: Can I open a Wise account for free?

Yes. Opening a Wise personal account is free with no monthly or annual fees. You only pay when you actually make a transfer.

Source
TransferWise: How many currencies does Wise support?

Wise allows you to hold and exchange money in 40+ currencies, and send payments to 160+ countries with spending available in 150+ countries.

Source
TransferWise: Does Wise offer a debit card?

Yes. Wise Multi-Currency Card is available in selected countries including Australia, Brazil, Canada, Japan, and others. It uses mid-market exchange rates and has no annual fee.

Source
TransferWise: How does Wise work without traditional banking?

Wise holds local bank accounts in each country it operates. When you send USD to EUR, Wise receives your dollars in the US and releases euros from its local European account to your recipient.

Source
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Related pages

More on PayPal

More on TransferWise

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