How do PayPal and Wise Compare?

Photo of author

By Jacob Maslow

Paypal Vs Wise-Which One Should You Use To Send Money Online In 2022

Regarding comparison, Wise and PayPal are two very easy and convenient methods for transferring an online payment. Still, we are often triggered by this question as to which one will yield you a better deal when you make your next payment.

To look for an appropriate answer, we’ll compare Wise and PayPal to see who provides you with the lowest fees, the best exchange rates, also optimum transfer speeds.

Once upon a time, having a Pay Pal account for oneself was considered an inconvenient necessity. But now, it is the opposite; it’s the most crucial payment mode millions of people trust worldwide. It is considered a simple way to make payments and transfer funds. 

Previously known as Transferwise, Wise is simply nothing but an international money transfer company that facilitates a ‘borderless account,’ implying that you can now enjoy much-reduced transfer fees.

Due to the overpriced ancient banking system, Wise was formed.

Let’s keep reading about wise vs. Paypal to understand which is better. 

Paypal Vs Wise- How We Will compare Them

We here are going to compare the two modes of money transfer by looking at how they measure up in different factors, allotting them scores out of ten, and finally seeing which one comes out at the top in the list. The reason that we will be researching are as follows:

  •       Lower fees
  •       Better exchange rates
  •       Faster
  •       General Features

Which Has Lower Fees?


Wise’s fee is usually a combination of a tiny percentage of your transaction amount (usually from 0.4% to 1.5%), including a flat fee.

The flat fee is between $1 and $2 for top currencies but can raise more than the $5 mark in some rare cases.

Bank transfers charge reduced rates than if you make payments with a credit or debit card.


When we compare PayPal’s fee structure, it is noticed that it is pretty complicated. The amount that you require to pay primarily depends on the transfer amount, and not only that, another reason that is also considered is if you are paying for the transaction from your PayPal balance, your bank account, or maybe your credit/debit card.

How do They Compare?

If, for instance, you are bearing charges for your transfer from your PayPal balance or bank account, it can be said that PayPal’s international transfer fees are quite a competition to its competitors. But, many times, it is seen that fees quickly add up if you are making the payment with your credit/debit card, and at times the complicated fee structure might be extremely tough to understand.

Whereas wise provides minimal fees for most of the transactions and often provides a handy online tool to assist you in calculating the entire cost of your transaction.

Which Offers Better Exchange Rates?


Wise offers international money transfers by using the mid-market exchange rate. Another of its primary functions is to represent the real market value of one currency compared to another. For instance, if you consider the mid-market rate 1 AUD = 0.7130 USD, that’s the exact rate you’ll get when you transfer.


On the other hand, PayPal includes a margin at the top of the mid-market rate. Though this particular margin is smaller than the banks, it’s commonly around the 3.5-4% range.

How Do They Compare?

The exchange rates that wise provides are much better than those provided by PayPal, which implies that you can send more money to your recipient’s bank account.


Which Is Faster


When you transfer money, the speed varies depending on the currency you are transferring and the payment method you choose.

Though most transactions take between 1 and 2 business days, there are also instances when sending funds to some particular destinations within a few minutes is possible.


When you transfer via PayPal, your recipient can often access the funds you are transferring to their PayPal account within seconds. However, you must consider that if the recipient is not willing to leave this balance in their PayPal account, in those circumstances withdrawing money from their bank account might take a little longer than one business day.

 How Do They Compare?

When compared, it is seen that PayPal transfers are usually faster – but only in situations when your recipient is excited to spend the money you send directly from their PayPal account.

General Features


Wise provides you with a convenience of reduced fees and an exchange rate calculator on its official website. One thing you cannot miss is that you’ll need to open a Wise account before you commence your journey of making a transfer. 

After that, you can initiate a transfer by being specific about the amount and the same currency you desire to send. You are also required to provide your recipient’s bank account details.

After the above process is completed, you’ll receive email updates about the transfer process, and you can easily track down your transaction, either online or you can also use the Wise app.


Before transferring money overseas with PayPal, both parties must have their individual PayPal accounts. Later, you have to link your bank account or credit/debit card to your PayPal account to add money to your transaction.

To transfer, all you need to do is enter your recipient’s email address or phone number. After that, you have to enter the details of your transaction, be specific about why you are sending funds, and finally, take a while to review the entire cost of your transaction before finally submitting your transfer.

 How Do They Compare?

The essential features of both online payment modes are pretty similar. And it can be said that they both function quite similarly.

The Breakdown

If it looks like we have delved too deeper into the concept, but still, the factors are not that clear, then let’s take a step ahead and break it into certain columns and look at the bigger picture. 


Wise PayPal
Transfer fee 8/10 7/10
Transaction cost 9/10 8/10
Exchange rate 9/10 8/10
Transfer period 9/10 10/10
Total score 35 33


The Winner-Wise

When compared, it is seen that Wise usually provides an excellent value for money than PayPal while making international transfers. Though the fee rates often work out quite similarly between Wise and Pay Pal when transferring funds from your bank account, Wise’s dedication to providing the mid-market rate implies that a more significant part of the money you transfer will end up in your recipient’s pocket.

Despite PayPal being useful while sending a tiny amount or when a quick transfer is required, Wise usually comes out on top.

Images Courtesy of DepositPhotos