Wise vs Paypal
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Author: Yasmin Purnell
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Table of contents
The main difference between Wise and Paypal is that Paypal adds a markup of around 3.5 – 4% on top of the mid-market rate, depending on the currency while Wise adds no markups on the mid-market rate.
When you’re looking for the best way to send money abroad, it can be difficult to work out exactly what money transfer provider is best for you.
Wise and PayPal are both leaders in the money transfers space, but can PayPal’s less specialized currency conversion service match Wise? In this Wise vs PayPal comparison, we’ll compare both operators’ fees, exchange rates, transfer times, and more to help you decide if either of these companies is right for you.
Wise
Wise, formerly TransferWise, was founded in 2011 by Kristo Käärmann and Taavet Hinrikus, two Estonian ex-pats who realised how much money they were losing by sending money internationally with traditional banks. The company has grown rapidly in its almost 10 years of operating, expanding to a customer base of over 8 million users worldwide.
Wise is driven by a mission to provide more transparency in the international transfers space, promising to always clearly set out their fee structure and to offer transfers at the mid-market rate - a feature that makes this company really stand out.
Please share your experience with Wise
Would you recommend Wise?
Russell Pinkes
I can’t send money to Belize
Katsiaryna
Once trying to open sire, was automatically blocked for no reason
Alan
Unable to transfer money from Philippines to any other country. Philippines Wise does not work
Anonymous
Retiro de dinero en transferencia
Uwe
great rates and service - unfortunately for some countries not yet available
Martin Premprakash Anantharaman
On the first transfer to a hospital in NY they were already screaming that this was a sure scam and the same on my next transfer to a fried in Nigeria. They then summarily closed my account TERMINATING THE RUNNING TRANSFER TO NIGERIA, claiming that, hold on, I was being scammed🤦♂️ Sure, I could have appealed but immediately found that I would have had to provide so much intrusive detail that I desisted.
Martin Premprakash Anantharaman
Setting up is a bit unwieldy if you want to make a one-off transfer, as you have to create an account with complete identification - but it works and the process as well as charges are great.
Anonymous
My brother wants to send me money from India to Nigeria but he's finding it difficult how can he do it
Mohammed
WARNING : Wise was Great until main office decided to ruin WISE By letting the TW India office control handling Random verifications and do what ever they want by insane replies and no replies etc. If you want to waste your time and enjoy a journey into Black Hole of Insane then go ahead and try WISE !
Anonymous
Can't receive money from php to idr so far
sudheir
They don't allow transfer to Brokerage firms from India
Anonymous
Good app to transfer money
Anonymous
I didn't find Cuba on your list.
Anonymous
cuba not work
Nina
I made a transfer to a Canadian company 1.5 months ago, and the funds have not yet been received. After multiple emails, Wise insists that the money was paid out. However, I have received an official statement from the recipient’s bank confirming that the money has not been received. Wise's complaints department sent me a final letter stating that, according to their records, the funds were paid out. Additionally, Wise states the following in their Customer Agreement regarding their responsibility for losses: Quote from Wise's Terms: "Our Customer Agreement also explains our responsibility for losses in Section 29: 29.1 Unforeseeable loss or damage. We are not responsible for any loss or damage that is not foreseeable. Loss or damage is foreseeable if either it is obvious that it will happen or if, at the time the contract was made, both we and you knew it might happen, for example, if you discussed it with us during your sign-up process. 29.9 We are not liable for things which are outside of our control. We (and our affiliates) cannot be liable for our inability to deliver or delay because of things which are outside our control." Despite these terms, Wise has not been able to resolve this issue, and the money has still not been delivered as promised. I find it irresponsible that Wise does not conduct any investigations into the matter. The Canadian bank associated with Wise is unable to provide any information, as everything goes through Wise. Wise must be capable of tracking the funds and providing precise details about where exactly the money is, who received it, and to which bank account it was deposited. I would advise everyone to be cautious when transferring large sums of money with Wise. They are not capable of executing a secure money transfer!
Shengjie Yin
good and perfect
Tristan
Beware: Wise's Unethical Policies and Unresponsive Support Cost My Business I am sharing my experience with Wise to warn fellow business owners about the serious risks and unacceptable practices you may encounter if you choose to use their services. My business, is a legally registered travel agency in the UK, and I relied on Wise to manage payments for my photography and cultural tours, primarily in South America. Things took a turn for the worse when Wise froze my account and accused my business of violating their Acceptable Use Policy, citing my once-a-year humanitarian trip to Cuba. Despite explaining multiple times that: No Cuba-related transactions were ever processed through Wise (I use a separate European bank for this purpose), My tours comply with the “Support for Cuban People” category authorized by OFAC, designed to help Cuban citizens outside state control, Wise completely ignored the facts. Their customer support team responded with automated messages, refused to engage in any meaningful dialogue, and even lied, claiming they didn't monitor my emails—despite clear evidence to the contrary. After days of chasing them and providing thorough documentation, they chose to close my account without justification. The Consequences: Wise left my business in chaos, disrupting essential transactions and client arrangements. Their rigid policies align with sanctions widely condemned by the global community, and in doing so, they indirectly support humanitarian suffering. The Bottom Line: Wise is unreliable, unresponsive, and unethical. If your business has any complexity or humanitarian focus, beware: Wise will shut you down without notice or explanation, and customer support will abandon you. Their actions have serious real-world consequences. Avoid Wise if you value your business stability or require ethical and accountable financial services. There are far better alternatives out there that won’t put your livelihood at risk Beware: Wise's Unethical Policies and Unresponsive Support Cost My Business
Anonymous
I have been a customer for a few years. Yes I love the instant deposits as I make around $1K. However as many non US entities Wise uses a bank out of New York. Therefore the TRANSFER and DEPOSIT from an account transfer can take 4 to 6 days. What this means is that you will not able to make another ACH transfer during this time. This is frustrating if you have to make a follow up transfer in a few days. All in all don't plan to make more than 4 transfer in a month because it may not fo through, Not sure if other transfer companies operate the same way but I am about to find out as I will try Revolute. Bottom linw will require you to use ANOTHER payment method like credit card or some other method. Understand this: YOU MAY HAVE THE MONEY IN YOUR ACCOUNT but they WILL NOT TRY TO VERIFY IT WITHIN THE THE PERIOD IT WILL TAKE THEM TO DEPOSIT IT IN YOUR ACCOUNT. To add insult to injury I called in and the agent siad that they can see that they got paid but the computer takes time to update/reconcille I guess! It is a slow system!
Anonymous
There is a lot of advice on RECEIVING INHERITANCE in the UK from overseas but nothing on the rules for SENDING money gifts to grandchildren living OVERSEAS and the rules on Inheritance Tax in that case.
Anonymous
The service is decent, nothing more. I have had security issues that are not quickly resolved. Call center personnel are average. The app is not, in general, user friendly. You should definitely do research on a variety of service providers before making a choice. Do not take the reviews at face value. I chose Wise based on positive reviews but now regret not doing more research on other companies.
Anonymous
So far so good
Daniel
I checked to see if Wise even sends money to Colombia. Colombia is not even in their list of countries. Why is it even advertising for Colombia?
Bill Sanders
I have used Wise for several years. They once rejected a large transfer because it was to a coal company. Apparently, they are a woke company! But they refused to tell me why. More recently, they required verification of my identity using a smart phone. I am 69 and never owned a cell phone because I don't need one. But they forced me to buy one, which I did last week. Getting the phone updates ate up all my data, so i got 1 GB more. I took 12 different pics of my passport and another 12 of my face for them. They rejected them - and are holding up my transfer. Now my phone ate up that gig of data and I must buy another gig (thru Tracfone) just to use the phone. What a hassle. This is not a photo studio! They know who i am already. Note: This comment has been edited by the MoneyTransfers.com team to align with our content guidelines.
Ziggy Meilus
It used to be always instant, now it may come right away or it can take 5 even 7 days to get the money.
Anonymous
i've heard of people having issues with accounts being locked/restricted, but i think that was mostly for business accounts, maybe they were locked for good reason. for me, i've had no issue with my account though i've only used it for small transfers and not very often, over the past 5+ years
PayPal
PayPal was founded in 1998 by entrepreneurs Elon Musk, Max Levchin, Peter Thiel, Luke Nosek, and Jack Selby. It was initially launched as an e-wallet service and was later acquired by eBay in 2002 before becoming independent again in 2015.
PayPal describes itself as a “safer, simpler, smarter way to send and receive money online”. It’s free to sign up to - all you need is an email address - and you can link your card or bank account for a more convenient way to pay when you shop online. In 2015, PayPal acquired the digital money transfer company, Xoom.
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Quick summary: Wise wins
PayPal is an excellent service for making online payments and sending money between family and friends within the same currency. However, when it comes to sending funds between currencies, Wise offers a more specialist service that enables it to charge lower fees, more favourable exchange rates, and get your money to your recipient in less time.
Which brand has lower fees?
Wise's fees vary depending on:
The amount you are sending
Your payment method
Where you are sending the money from
Whether you opt for a fast transfer (higher fees) or a low-cost transfer (potentially longer transfer times).
The company’s fees are made up of a small percentage of the transfer amount plus a small fixed fee which can vary depending on whether you opt for a fast or a cheap money transfer abroad.
✅ Verdict: There’s not enough information to pick a winner
Between PayPal vs Wise, PayPal may have more favourable fees than Wise in some cases (and the other way around), fees rarely give us the whole picture. Exchange rate margins can massively increase the overall charge for your transfer, while other variables such as the sum you are sending, the destination, and your payment method can all come into play here.
Which brand offers better exchange rates?
Wise adds no markups on the mid-market rate, promising to always transfer your money at the existing interbank exchange rate with the ability to lock-in the rate for up to 48 hours for some transfers.
This is a feature that makes Wise extremely popular, providing a transparent breakdown of the fees you can expect when sending your money with them with the assurance that you’re always getting a fair exchange rate.
✅ Verdict: Wise offer far more competitive exchange rates
PayPal simply cannot compete with Wise when it comes to exchange rates. Compared to many money transfer providers, PayPal’s rates are already unfavourable - but add in the fact that Wise adds zero fees onto the mid-market rate, and we have a clear winner here when comparing Wise vs PayPal.
Which brand covers more locations?
Wise supports transfers to 70+ countries in over 40+ currencies, including the vast majority of Europe, the United States, India, Brazil, Australia, and Canada.
✅ Verdict: Wise supports more currencies
While PayPal has a huge platform with reach to hundreds of countries, the currencies it offers conversions to are relatively limited compared to Wise.
Which is faster?
Wise's transfer times can take anywhere from minutes to up to 2 working business days. The company provides the option to choose between ‘fast and easy’ transfers, which have higher costs but near-instant transfer times, and ‘low-cost’ transfers which have lower fees but may take slightly longer to be processed.
✅ Verdict: Wise tends to be faster - but PayPal is instant under the right circumstances
Comparing PayPal vs Wise, PayPal can be an effective way to send money instantly if both you and the recipient are regular users and have accounts already set up. However, if you are sending smaller sums and happy to pay slightly higher fees for an instant transfer, Wise is also a good option. To manage expectations, Wise tells us that 70% of transfers are received in under 20 seconds, but this may not be available to all customers (depending on specific transfer needs).
Which brand offers more transfer & payment options?
Wise's payment options include:
Credit card
Debit cards
Apple and Google Pay
POLi
The most popular payout option is for funds to be sent directly to your recipient’s bank account.
✅ Verdict: It’s a tie
Between Wise vs PayPal, both providers have a number of options for paying for your transfer, which is convenient since fees will often vary depending on what payment option you select. It should be noted that both companies are fairly limited in terms of payout options - neither offers cash pickups which can be a key factor for many people sending money abroad.
What do users have to say about each brand?
Wise has over 260,000 reviews on Trustpilot and a total ‘Excellent’ rating of 4.3 out of 5. The positive reviews most frequently praise how easy and convenient the platform is to us, transparent fee and exchange rate structures, and the speed in which transfers can be processed.
In terms of cons, Wise becomes less competitive the larger the sum you are looking to provide, so it’s worth considering other operators if you’ll be sending large amounts on a regular basis. Furthermore, some customers struggle with the digital focus provider's platform is built on, with cash pickups and agent locations a big appeal for many.
✅ Verdict: Wise has far better user reviews
Wise is a popular transfer service and has positive reviews to back up the quality of service it provides. It should be noted, however, that PayPal’s user reviews cannot be completely relied upon as there is no way to separate reviews for the company’s transfer services from the rest of the services they provide.
What brand offers better ease of use, accessibility & security?
Wise supports 12 languages on its website and has a free app available on both iOS and Android. The app is highly rated on both app stores and receives positive reviews for its user-friendly interface to make transfers on the go.
In terms of customer support, the platform does provide assistance via live chat, email, and phone, although some users find these options difficult to access on the platform.
Wise has a 2-factor authentication system that sends the user a code to verify a transaction before proceeding in order to protect your account. In some cases, the provider will also require further identification to verify your account - this may include uploading a photo of your ID, proof of address, or a photo of you holding your ID for verification purposes. (This list is for information purposes only and is not meant to be a comprehensive list of all of the items that Wise may request to verify identity. Eligibility is subject to identity verification.)
✅ Verdict: It’s a tie
Between PayPal vs Wise, both providers are industry giants in their own right, and therefore have several layers of security and user protection in place to keep your money and accounts safe.
Additional features
As well as international money transfers, Wise has expanded to offer a multi-currency account to their users. Similarly to virtual bank accounts, the account enables users to be paid in over 45 currencies, avoiding unfair exchange rates and fees from local banks, and also comes with its own debit Mastercard which has fee-free ATM withdrawals up to £200.
Case study: sending a variety of amounts with each provider
In this Wise vs PayPal case study, we'll look at the fees, exchange rate, and transfer times when sending various amounts between the UK (GDP) and Australia (AUD).
Sending £200
Sending £200 with Wise would give you a conversion rate of 1 GBP = 1.81336 AUD (at the time of writing). This transfer would incur a fee of £1.56, with the recipient receiving a total of $359.84.
Sending £1,000
You would get the same mid-market rate with this transfer, and incur a fee of £3.76 for a low-cost transfer taking around 1 working day. The recipient would receive a total of $1,805.76.
Sending £20,000
Sending this sum would incur a fee of £70.02 for a low-cost transfer, which would take around 1 working day. The recipient would receive a total of $36,151.7.
✅ Verdict: Wise wins
From this Wise vs PayPal case study, we can clearly see that Wise has more favourable fees and exchange rates than PayPal. In every case, the recipient receives far more of your money with Wise - with a difference of almost $2,000 in the case of the larger sum. Additionally, Wise estimates your transfer would take between 1 - 2 working days, whereas PayPal could take up to 5.
Final verdict: Wise vs PayPal?
While PayPal is undoubtedly a well-established and popular service for sending money domestically and making payments online, it's clear that when it comes to transferring money between currencies, a specialist provider such as Wise can't be matched.
Wise is superior here in terms of fees, exchange rate margins, transfer times, and user reviews, delivering your money internationally faster and for less.
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FAQs
Is PayPal cheaper than Wise?
No, PayPal is not cheaper than Wise. That is because they have higher transfer fees and charge recipients a fee for accepting funds. In contrast, Wise provides fee-free transfers. Also, these are processed instantly in most cases.
Wise offers currency conversions that match the mid-market rate. On the other hand, PayPal does not provide a competitive FX rate. They have a significant markup percentage for profiting from international money transfers.
Can you use more than one money transfer company?
Yes, we recommend that you take advantage of more than one money transfer company for the following reasons:
More features: some money transfer companies have unique features that enable you to get more out of your international money transfer experience. This might be the ability to set up mass international payments or enjoy fee-free instant balance transfers.
Save money: the FX rates and fees might change at your money transfer company over time. Having access to multiple options enables you to compare the rates and choose one that matches your requirements.
Less risky: holding most of your money with a single money transfer company may cause you to stay up at night. Instead, holding money with several companies spreads the risk if something happens. However, the money transfer companies we recommend are regulated by organizations such as the Financial Conduct Authority, so your money will be insured up to a specific amount.
How fast is a PayPal transfer?
PayPal transfers are processed instantly when sent from one user to the next. However, when you must fund money from your bank account or the user needs to create a new PayPal account, it can take 3-5 business days for the transaction to process.
On the other hand, users can create a Wise account in under 10 minutes and receive fee-free balance transfers that are processed within a few seconds in most cases.
Are there different money transfer companies by country?
Yes, the choice of money transfer companies changes based on your location. Due to regulations and where companies have decided to provide their services, you will face limitations. Also, not all companies include the same countries regarding where you can send money.
Ideally, you should select a money transfer company that provides an extensive network of destination countries where you can send funds. This ensures that your needs will be met as you want to send money to different countries worldwide.
Which is cheaper for international transfers, PayPal or Wise?
Wise is cheaper for international transfers compared with PayPal. That is because PayPal has a “cross-border” fee and charges a high currency conversion markup percentage. In comparison, Wise offers fee-free balance transfers when currency conversions are not required. Also, they match the mid-market rate for most currency pairs.
Outside of balance transfers, the fees can vary based on the transfer method, where you send money from and to, the amount you send, and if you have selected a low-cost option.
What is better than Wise?
Currencies Direct is a better option than Wise for business transfers. That is because they offer customized and flexible transfer solutions. This includes business transfers that take advantage of multi-currency accounts and forward contracts.
Also, they do not charge a fee and have excellent global coverage. Additionally, Currencies Direct offers 60 currencies, perfect for businesses operating in many countries worldwide.
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Zelle vs Venmo
Zelle and Venmo are popular payment providers for customers based in America. Both companies exclusively handles domestic money transfers, a deal-breaker for anyone hoping to send money overseas. If international money transfers are on the agenda, you will need to look elsewhere as both Zelle and Venmo handle US-only transactions. Find out How to Transfer Money Within the USA.
Contributors
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