You may, like many others, consider using TransferWise or PayPal for your next overseas funds transfer. While both can save you a considerable amount of money compared to the big banks, can one work better for you than the other? The answer to this seemingly simple question lies in the details.
To see how customers of both companies feel about the services they receive, you can take a PayPal vs. TransferWise comparison to Trustpilot. While TransferWise averages an impressive 9.6 out of 10, PayPal’s score is nowhere close. However, different factors can tilt the balance in favor for both companies.
To help you with your decision in selecting PayPal or TransferWise, this comparison is divided into multiple sections:
- Exchange Rates
- Ease of Use
- Regular Overseas Payments
TranferWise Live Price Calculator
International Money Transfer Fees
This section of the TransferWise vs. PayPal comparison requires particular attention because both companies follow different fee structures.
- PayPal fees depend on the country of the transfer’s origin.
- If you transfer funds from the U.S. and pay using your PayPal balance or a linked bank account, you end up paying 0% to 2% of the transfer amount as fees.
- In the event the transfer originates in Australia, and you pay for it using your PayPal balance or a linked bank account, the company charges 0.5% to 3.3% of the transfer amount in fees.
- Payments made using debit and credit cards usually attract higher fees.
- A currency conversion fee can apply to PayPal transfers.
Ease of Use
Whether you select PayPal or TransferWise, signing up online is simple and takes little time. You can use websites of both companies in different languages. Both offer simple and easy to use Web and Smart Phone Apps.
- Other than English, TransferWise provides website access in English, German, Spanish, French, Italian, Hungarian, Polish, Portuguese, Russian and Japanese.
- You can register with TransferWise by using your Facebook, Google or PayPal account (ironically!).
- The company provides services to individuals and businesses. Your single account can host your personal and business account needs. Super easy.
- It accepts payments via electronic bank transfers, debit cards, and credit cards. (Beware that credit cards charge an extra fee! Only use if you are in a hurry).
- It lets you transfer funds directly into the recipient’s overseas bank account.
TransferWise allows you to Request Money. This is handy for businesses who need to request funds for services rendered.Update: This feature has now been removed from TransferWise. The Request Money feature has been superseded by their multi-currency Borderless Account service.
- TransferWise has a simple and regularly updated TransferWise App for iOS.
- You can use an Android TransferWise smart device app.
- PayPal lets you use its website in languages such as Chinese, French, Japanese, Italian, Portuguese, Russian, and Spanish.
- You can pay for your transfer by using your PayPal balance, a linked bank account, a debit card, or a credit card.
- PayPal lets you transfer funds only to other PayPal accounts. Once the transfer is complete, the recipient can withdraw the money into a local bank account.
- Using PayPal balances to shop online is possible.
- PayPal provides apps for iOS and Android.
Regular Overseas Payments
If you want to pre-schedule your routine fund transfers, there is no real point in turning to TransferWise or PayPal, since neither company offers this service. Other reputable companies that let you schedule transfers according to your needs include: World First, Currencies Direct, TorFX, OFX, and HiFX.
- PayPal offer an easy to use “Repeat Transaction” feature. If you send money within your country or internationally you will find an easy to use link within your “Activity’ statement.
- TransferWise also offers and easy “repeat transfer” option from within your history. It is not automatic though!
- Watch a TransferWise YouTube video on how to apply your exclusive discount.
- Read about TransferWise features and their pro’s and con’s.
- When CurrencyFair and TransferWise go head to head.. who wins?