Wise vs PayPal 2024: Which Is Best For You?

What Are The Differences Between Wise vs PayPal?

As I mentioned, Wise and PayPal are both payment transfer and processing platforms.

There are some similarities between Wise vs Paypal!

For example, both Wise and PayPal offer multilingual services through their online, in-app, and phone channels.

And regarding safety and security, both Wise and PayPal are fully licensed and regulated, providing users with peace of mind in their financial transactions.

However, there are some differences between Wise and PayPal:

• Wise is known for its user-centric approach, utilizing the mid-market rate to ensure fair currency exchange rates. In contrast, PayPal charges a 4% exchange rate markup.
• In terms of fees, Wise offers variable rates (based on the destination country). PayPal international payments from personal accounts carry a minimum 5% fee.
• PayPal payments should arrive within a few minutes if you transfer money from your PayPal balance (or use a debit or credit card). But if the payment comes from a linked bank account, the transaction may take 2-3 business days to clear. Wise payments can also be processed instantly but sometimes take up to 24 hours.
• You can’t send money to a bank account with PayPal, only to another PayPal account (unless you opt for PayPal’s Xoom service). With Wise, you can send money to another Wise account or bank account.
• And finally, as mentioned above, PayPal can be used in conjunction with many online stores by connecting your PayPal account. You can pay online with Wise, but you must order and use a Wise Debit card.

So, which is better, PayPal or Wise? Let’s find out.

Read more: How To Set Up Recurring Payments in PayPal.

Ease Of Use

When it comes to ease of use, both Wise and PayPal have straightforward platforms that prioritize user experience.

Wise’s platform features a user-centric design and intuitive interface, allowing users to make transactions and manage their multi-currency accounts seamlessly.

Similarly, PayPal’s interface is well-known for its simplicity and convenience, allowing users to send and receive payments from worldwide effortlessly.

Plus, its customizable checkout options and integrations with various eCommerce platforms make sending and receiving payments a breeze.

Additionally, both platforms offer Android and Apple mobile apps, so you can easily manage your account and send or receive payments on the move!

Winner = Draw

Read more: How To Collect Donations With PayPal.

Pricing and Fees

Wise is renowned for its low-cost fees and transparent pricing.

Therefore, you’ll only be charged a transfer fee when you send money.

It won’t cost you anything to set up a Wise Personal account, but Wise Business does require a one-time payment (the cost varies depending on your country).

This fee is a percentage determined by:

• The currency involved (starting from 0.43%).
• The amount being sent.
• The chosen payment method.

Unlike hidden fees or markups, Wise calculates the cost of exchanging currencies based on the mid-market exchange rate.

This is one of the best things about using Wise!

The mid-market exchange rate is considered the most accurate and fair rate.

If you’re transferring money between two Wise accounts in the same currency, there’s no conversion fee, but you should know that a nominal fee is applied to complete the transfer.

However, if you’re exchanging currencies, a conversion fee does apply.

On the other hand, creating a PayPal account is also free.

However, keep in mind that fees apply when receiving payments from a purchase or payments from outside your home country or region.

The transaction fees for PayPal payments range from 3.49% + $0.49 per transaction, while QR code payments for transactions over $10.00 charge 1.9% + $0.10 per transaction.

The online credit and debit card transaction fee is 2.59% + $0.49 per transaction.

In-person transactions charge 2.29% + $0.09 per transaction (that’s right, PayPal offers in-person transactions!)

It’s important to note that PayPal doesn’t use a one-size-fits-all model.

Donations and charity transactions have different rates, while PayPal Here and PayPal Online Card Payment Services differentiate fixed fees based on the currency received.

So, in terms of fees and pricing, is Wise better than PayPal? I would have to say yes!

But there is one clear thing!

PayPal’s pricing structure offers transparency, so you’re in control of your spending.

Check out PayPal’s full consumer fees list here.

Winner = Wise

Wise vs PayPal Card

PayPal offers a range of credit and debit cards specifically designed for US customers, each with its own unique features and fees.

I’ll start with the good news:

• There are no monthly fees for their debit cards, making it a cost-effective choice.
• When using a PayPal debit card to spend in USD, there are no fees.

However, a foreign transaction fee of 2.5% will apply when purchasing overseas with PayPal, and additional out-of-network ATM fees may be added.

On the other hand, Wise provides a multi-currency holding account and a linked debit card, offering a convenient solution for payments and withdrawals.

To order the Wise card, there’s a one-time fee of just $5 USD, and you can use it in 150+ countries.

One of the highlights of the Wise card is that it also uses the mid-market exchange rate every time they spend overseas, ensuring fair and transparent currency conversion.

Additionally, Wise offers fee-free ATM withdrawals monthly, with low fees applicable after surpassing the monthly limit.

PayPal’s debit card is issued on the Mastercard network, providing global acceptance in most locations displaying the Mastercard symbol.

Wise offers cards issued on both the Visa and Mastercard networks, giving users great acceptance worldwide.

Winner = Wise.

Read more about How to use Stripe to collect online payments here.