Wise (Formerly Transferwise) vs Paypal

There are so many money transfer services on the market, it might be a bit difficult to choose one to send money to friends, family, and colleagues back home. You want to make sure you’re getting the best rate, the fastest transfer time, and an all-around pleasant user experience.

Comparing the top possibilities is the most effective way to find the right fit for your needs and lifestyle. Here, we will compare Transferwise and paypal, two popular money transfer platforms. We will compare their fees, accepted payment methods, and more.

A Transferwise Overview

TransferWise is an international money transfer firm founded in the United Kingdom that allows you to send money to over 70 countries. It is gradually becoming a popular choice in the international money transfer area, thanks to strong mid-market exchange rates and simple transfers to bank accounts.

Transfer money quickly and effortlessly with TransferWise's website or mobile app, which accepts credit cards, debit cards, bank accounts, and wire transfer accounts.

A Paypal Overview

Consumers couldn't have imagined using the internet to send money from one country to another two decades ago. People were overpaying banks and Western Union to send money to family and friends in other countries at the time.

Then came PayPal, which revolutionized the money transfer sector by allowing users to transmit money from one country to another almost immediately.

Fast transfers are the name of the game when it comes to online payment and money transfer giant PayPal. The recipient usually sees the funds in their PayPal account just a few minutes after the transfer is initiated, allowing them to use them right away.

Transferwise’s Payment Methods

When funding a transfer to someone abroad, TransferWise gives four options: credit card, debit card, bank account transfer, and wire transfer.

You can send up to $1 million per day with TransferWise, making it one of the largest sending limits in the online money transfer market.

You can send up to $1 million per transaction using a company or personal bank account. You can send up to $15,000 per day using ACH transfers; you can send up to $2,000 per day or $8,000 per week via credit or debit card.

You can transfer up to $50,000 per transfer from an account with an address in Nevada, Hawaii, Guam, or the Virgin Islands. The daily limit for sending money with an ACH transfer from these areas is $10,000.

Use the TransferWise app to set up recurring transactions. This allows you to set things up so that money is automatically sent to other nations, making your life easier.

Paypal’s Payment Methods

You have a few alternatives for funding your transfers with PayPal:

PayPal account balance

The bank account that is linked

Debit card/credit card

The money can be spent in three ways by the recipient:

Using their PayPal balance to pay for products and services (This only applies to merchants who use PayPal as a form of payment.)

Getting money out of a PayPal account and into a bank account

Request that money is paid to them via check, which will take 5-10 days and will be subject to a fee.

Fees

Transferwise Fees

When sending money with TransferWise, the costs you may anticipate to pay vary depending on a number of factors. Some of these elements are:

How much you are sending?

What country you're transferring money to and if you're funding your transfer with a bank account, debit card, or credit card?

TransferWise is transparent about its fees, and you'll always be able to know how much you'll be charged before completing your transaction.

Paypal’s fees

PayPal doesn't charge any fees when you send money within your nation using your PayPal balance or linked bank account. However, there are fees associated with using your credit or debit card in the United States.

PayPal, on the other hand, levies a fee for all international transfers.

When you transfer money from your PayPal or bank account, the cost is reduced. At the same time, if you pay the transfer using a credit or debit card, the fees are significantly greater. In addition, any transfers funded with a credit or debit card are subject to a fixed fee from PayPal.

Unless you want a paper check, PayPal does not impose fees for withdrawing money.

Exchange Rates

Transferwise’s rates

TransferWise employs a mid-market exchange rate, making them extremely cost-effective when compared to other money transfer services and possibilities. TransferWise offers rates that are comparable to those offered by your bank when sending money.

When sending money to select countries, you may lock down your exchange rate with TransferWise.

You may have between 24 and 48 hours from the moment you set up your transfer to pay in full for that transfer, depending on where you're sending money to. If you begin your transfer on a Friday, your rate will be guaranteed for the whole weekend.

You will be charged the mid-market rate if you do not fully pay your transfer by the end of the lock-in period. Because this rate fluctuates, you may end up paying more or less than you planned when you made the transfer.

Paypal’s rates

The mid-market exchange rate is used to calculate PayPal's currency rates. Depending on the sender's country and the receiving currency, PayPal deducts a 2.5 percent to 4.5 percent profit from the mid-market rate.

Their exchange rates can vary depending on how you pay for the transfer.

For international currency transfers made with your PayPal balance, PayPal offers a single conversion rate. Because PayPal doesn't impose as much of a markup on the transaction, this exchange rate is frequently better.

However, if you fund your transfer with a bank account, credit card, or debit card, you will be charged a different exchange rate.You may pay a higher exchange rate if you pay this way since PayPal marks up the rate more than if you pay using a PayPal balance.

As a result, PayPal's exchange rates aren't as good as those offered by other money transfer services.

Security

Transferwise’s security

TransferWise is a safe and secure method to send money to friends and family in other countries.

A number of international monitoring authorities have completely licensed and controlled the service. These organizations keep an eye on companies like TransferWise to make sure they're doing what they say they're doing (transfer money from one country to another) without scamming their clients.

Paypal’s security

PayPal is widely regarded as a safe and secure method of sending money over the internet. It's one of the most well-known methods for paying bills and sending money via the internet. The company has also been in operation for more than two decades.

Money is never utilized for PayPal expenses since client monies are maintained in pooled accounts distinct from the company's own accounts. PayPal also has a specialized security staff that monitors transactions 24 hours a day, 7 days a week to prevent theft, fraud, and phishing.

All PayPal transactions and client information are protected by cutting-edge encryption and security technologies. Various international financial agencies also control and monitor the corporation.

Some PayPal customers have complained that their money is held for a period of time for security and compliance reasons as a result of these stringent security measures. However, the vast majority of these complaints originate from businesses that use PayPal to conduct business, rather than from people who send money.

Ease of use

Transferwise Ease of Use

TransferWise is a website that you may access from your computer, tablet, or mobile device. Additionally, you may download the TransferWise app for free on your Apple or Android device.

Users like all of TransferWise's platforms, with many describing them as simple and intuitive.

Paypal Ease of Use

PayPal's website is accessible via a computer, tablet, or smartphone. On Apple and Android smartphones, there is also an app to download.

Conclusion

With low transparent fees and mid-market exchange rates, TransferWise is one of the most economical money transfer services available today. Transfers, on the other hand, can take several days. TransferWise may not be the ideal solution for you if you need to send money urgently.

TransferWise is a household name in the money transfer sector for a reason, from its multi-currency accounts to its user-friendly web applications.

With millions of customers and billions of transactions, PayPal is one of the most well-known corporations in the online money transfer market. While it is far from the cheapest method of transferring money abroad, it is largely regarded as safe and reliable by many customers.

Money can be moved between users in a couple of minutes in many circumstances, making it one of the quickest and most convenient ways to send money internationally.

Disclaimer: All third-party trademarks (including logos) referenced by Remitbee Inc. in this article remain the property of their respective owners. Unless specifically identified as such, Remitbee's use of third-party trademarks does not indicate any relationship, sponsorship, or endorsement between Remitbee and the owners of these trademarks. Any reference by Remitbee to third-party trademarks is to identify the corresponding third-party goods and/or services and shall be considered nominative fair use under the trademark law. Furthermore, we are not responsible for any inaccuracies identified in the article's content, and that information can be verified by contacting the respective third parties directly mentioned in the article.