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Wise (TransferWise) vs. PayPal
Wise is usually cheaper — but it isn't always faster.
Wise and PayPal are two convenient options for sending an online money transfer, but which one will net you a better deal on your next transfer?
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PayPal transfers may incur an additional fee depending on the currency sent. See the full PayPal fee schedule by currency.
Which has lower fees?
Wise
Wise’s fee is usually a combination of a small percentage of your transaction amount plus a flat fee.
The flat fee is between $1 and $2 for most major currencies but can climb above the $5 mark in some cases.
Bank transfers attract lower fees than if you pay with a credit or debit card.
PayPal
PayPal’s fee structure is quite complicated. The amount you pay depends on your transfer amount, where you’re sending the money and whether you pay for the transaction with your PayPal balance, bank account or credit/debit card. Fees for transferring out of the US range from $0.99 to $4.99 USD + 2.9% of the transaction amount. There’s also a small fixed fee for sending in a foreign currency.
Winner: Tie
If paying for your transfer from your PayPal balance or bank account, PayPal’s international transfer fees can be quite competitive. However, fees quickly add up if paying with your credit/debit card, and the complicated fee structure can be difficult to understand.
Wise also offers minimal fees for most transactions and offers a handy online tool to help you calculate the total cost of your transaction.
Compare fees between the two providers for your specific transaction to find the best value for money.
Let’s crunch the numbers: Sending $1,000 to the UK with a bank transfer and debit card
Let’s take a closer look at how Wise and PayPal compare when sending the sane amount with two different transfer methods.
Sending $1000 to the UK by bank transfer
| Wise | PayPal | |
|---|---|---|
| Transfer fee | $6.90 | $2.99 |
| Exchange rate | 1 USD = 0.7671 GBP | 1 USD = 0.7460 GBP |
| Transfer speed | 1–2 days | 3–5 days |
| Amount received (in GBP) | £761.81 | £743.77 |
Sending $1000 to the UK by debit card
| Wise | PayPal | |
|---|---|---|
| Transfer fee | $12.32 | $31.99 |
| Exchange rate | 1 USD = 0.7671 GBP | 1 USD = 0.7460 GBP |
| Transfer speed | 1–2 days | 3–5 days |
| Amount received (in GBP) | £757.65 | £722.14 |
While Wise had a higher fee when sending a bank transfer, its better exchange rates made it the more affordable option overall. And when sending by debit card, PayPal’s higher fees made the difference between the two more noticeable.
Which offers better exchange rates?
Wise
Wise offers international money transfers using the mid-market exchange rate. This is the rate you see listed on Google and sites like Xe, and it represents the real market value of one currency relative to another. For example, if the mid-market rate is 1 USD = 1.4974 NZD, that’s the rate you’ll get for your transfer.
PayPal
PayPal adds a margin on top of the mid-market rate. While this margin is typically smaller than that offered by the banks, it’s generally around the 3.5-4% range.
Using the same example as we did for Wise:
- If the mid-market rate is 1 USD = 1.4974 NZD
- PayPal’s rate might be 1 USD = 1.4570 NZD
Winner: Wise
Wise’s exchange rates are much better than those offered by PayPal, which means more of the money you send arrives in your recipient’s bank account.
Which is faster
Wise
Transfer times vary depending on the currency you send and the payment method you select.
While most transactions take between 1 and 2 business days, it’s possible to send funds to some destinations within minutes.
PayPal
If you’re sending from one PayPal account to another, transfers can be almost instant. But if you’re using another method, transfers take 3–5 days on average, and can sometimes take much longer.
Winner: PayPal
PayPal transfers are generally faster — but only if your recipient is happy to spend the money you send directly from their PayPal account. If they want it sitting in their bank account, you may find that Wise will get the money there quicker.
General features
| Payment methods | Receiving options | Minimum and maximum transfers | Transfer speeds | Availability | |
|---|---|---|---|---|---|
| Wise | Bank transfer, credit card, debit card | Bank transfer | Minimum: $1 Maximum: $199,999 | 1–2 days | 45+ countries |
| PayPal | Bank transfer, credit card, debit card, PayPal transfer | Bank transfer, PayPal account transfer | Minimum: $1 Maximum: $10,000 | 3–5 days | 190+ countries |
Wise
While Wise offers a handy fee and exchange rate calculator on its website, you’ll need to sign up for a Wise account before you can make a transfer. You can then initiate a transfer by specifying the amount and currency you want to send and providing your recipient’s bank account details.
You’ll receive email updates throughout the transfer process and can track your transaction online or using the Wise app.
PayPal
Before you can send money overseas with PayPal, both you and your recipient will need to have your own PayPal accounts. You can then link your bank account or credit/debit card to your PayPal account to fund your transaction.
To send a transfer, enter the email address or phone number of your recipient. You will then have to enter the details of your transaction, specify the reason why you are sending funds, and then take a moment to review the full cost of your transaction before submitting your transfer.
Bottom line
Wise generally offers much better value for money than PayPal on international transfers. While fee amounts often work out fairly similar between the two companies when paying from your bank account, Wise’s commitment to offering the mid-market rate means that more of the money you send will end up in your recipient’s pocket.
But to get the best deal on your next transfer, compare other transfer providers against PayPal and Wise before getting started.
Looking for more options?
Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
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Frequently asked questions
How do Wise and PayPal compare to the banks?
Both services typically offer better exchange rates and lower fees than the banks, so they can both help you save money on international transfers.
Do Wise and PayPal have apps?
Yes, both Wise and PayPal offer smartphone apps you can use to send an international transfer.
You can find out more about the Wise app in our guide to the best money transfer apps.
Can I pay for my transfer using cash or check?
No. These payment methods are not supported by either service.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
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