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Personal Finance · head to head

TransferWise vs PayPal

TransferWise logo

TransferWise

Personal Finance

The cheapest way to send money abroad

From
Free
Rated
-
Full reviewWebsite
PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite

The short version

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

Where they differ

Only the attributes on which TransferWise and PayPal actually diverge.

Attributes where TransferWise and PayPal differ
AttributeTransferWisePayPal
Starting priceFree$29/month
Pricing modelUnknownusage-based
Free tierYesNo
PlatformsWeb, iOS, AndroidWeb, Ios, Android, Api
Founded20111998

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

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 TransferWise

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

Only in PayPal

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

Both cover

  • Web support
  • Android support

What people use each for

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

TransferWise

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

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

Where each one falls short

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

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

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

Pricing, plan by plan

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%

PayPal

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

Which should you pick?

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

Choose PayPal if

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

Questions people ask

Is TransferWise or PayPal better?
Neither clearly leads. TransferWise starts at Free and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, TransferWise or PayPal?
TransferWise has a free tier; the other does not. Paid plans start at Free for TransferWise and $29/month for PayPal.
Does TransferWise or PayPal run on more platforms?
TransferWise runs on Web, iOS, Android. PayPal runs on Web, Ios, Android, Api.
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 TransferWise best used for?
TransferWise is most often used for budget management, expense tracking, investment tracking. Of those, budget management and expense tracking are not what PayPal is typically brought in for.
What can TransferWise do that PayPal cannot?
TransferWise covers International transfers, Real exchange rates, Currency conversion, Multi-currency accounts. PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. 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

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