Last updated on March 31st, 2021

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Should you use PayPal or TransferWise?

computer money

PayPal and TransferWise are two giant online money sending solutions. Both services have similarities and differences. Knowing which one offers what saves you a lot of time and headache.

I believe the #1 factor is applied fees. Which service would be a more economical option for sending money? Other than that, these two companies offer different features to their clients.

Security protocols, transfer period, user interface, and customer service are all valid concerns to be considered.

Both companies have their advantages and disadvantages. We will discuss all aspects of these platforms.

Fees

As we have said fees are the deal maker or breaker. You need to know which method of money transfer will be economical in the long run.

TransferWise charges less money transfer fees than PayPal. This is achieved thanks to TransferWise's chain of bank locations in different countries.

Sending money on TransferWise you move money between two TransferWise accounts without needing a third party like a bank. This helps to avoid fees associated with cross-country transfers.

The simplicity

It is simpler to send money with PayPal than TransferWise. Because PayPal only needs your email address to send or receive money.

With TransferWise, you will need the bank detail (such as IBAN, the recipient's name, and BIC/SWIFT) of the recipient before you can initiate a transaction.

Transfer Speed

PayPal is faster than TransferWise for money transfers. PayPal transfers are completed usually within a short period of time. If you need to send money faster use PayPal.

On the other hand, people still prefer TransferWise if they would like to save on the transaction cost. They may have to wait a bit, but the transfers will be effected using less amount.

TransferWise is known to have low and transparent rates. It is easy to know the amount you will be charged to send money via TransferWise before you finish the transaction.

The best method to save money

After taking into account several factors, you will realize TransferWise is a cheaper means of sending money across the borders. It will not expose you to currency conversion fees.

You will end up saving a lot of money if you can opt to utilize TransferWise in your online transactions.

People who send money regularly prefer TransferWise because they can save money in several ways. The low transfer fees have made many people offer good reviews about the company.

Transparency

Both PayPal and TransferWise have apps that allow you to check balance and even know the amount the receiver will get. Remember they work in such a way you will send money and the transaction cost will be deducted for the receiver to get the remaining.

The TransferWise app allows you to calculate the amount the recipient will get. You can edit the amount so that the receiver will get the desired amount.

For example, after getting certain services, you may like to edit the amount so that the recipient will get the right amount.

There is also a table where you can check out the transfer fees on the TransferWise website. It is unlike PayPal. They will not indicate exactly what the sender will receive.

You will not get much information about the transfer fees. You may have to calculate more before you can know the exact amount the recipient will get. When it comes to cost and transparency, you will realize TransferWise will beat PayPal.

Integration

PayPal easily integrates into eCommerce stores.

People looking for ways they can pay online and get paid prefer PayPal. It has an integration feature where you will install the PayPal button where people can click and get redirected to make payments online. It solves the way people shop online.

The platform has inbuilt features that offer some form of protection to both the buyers and the merchants. It is the most efficient way to make payments and even ask for refunds in case goods do not arrive.

After a customer chooses to pay via PayPal, he will be redirected to provide sign-in information and the site will redirect him to provide the right PayPal sign-up information before accessing the payment feature.

TransferWise does not integrate with eCommerce sites.

The payment method is focused on enabling international bank transfers. People who would like to send money from one bank to the other internationally use the services.

There is no website integration feature where you can click on a button to make payments.

To pay for goods and services using the method, you will have to make a different arrangement with the receiver so that you can get his or her bank details. People looking for ways they can make sales online will find the method a bit hectic.

Free cards for convenient transactions.

The multicurrency debit card is available for TransferWise users.TransferWise offers a free MasterCard debit card for users upon request.

When you get the multicurrency card, you can access funds in any location in the world. It is a convenient way for people who are planning for abroad tours. They can use the card in local ATMs to access their funds.

atm withdrawal

There are no expensive conversion fees if you can use the card to make payments in stores that accept MasterCard all over the world. The free card makes many people prefer TransferWise. They can utilize the card to travel with peace of mind.

The card will automatically use the appropriate currency when traveling. If you are in the United States, it will utilize funds in dollars making it easy to save on currency conversion fees.

PayPal cards

With PayPal, you can apply for a prepaid card for personal account holders. Debit cards are available for PayPal business accounts. When you travel abroad, you should be prepared to incur more costs.

The card will charge currency conversion fees among other additional charges. You will enjoy utilizing the card if you do not plan to travel abroad.

For the case of travelers who would like to utilize their funds economically, they will in most cases prefer TransferWise because the method will not expose them to additional charges as they try to access funds abroad.

When to use PayPal and when to prefer TransferWise?

There are some cases where you will find it appropriate to use PayPal and in some cases, TransferWise will work well for you. Here we are going to explain to you some of the instances where you will be better off if you can decide to use the two methods.

The best way to use PayPal is the money transfer method.

Transferring money via email.

You may only have an email from your client whom you would like to pay. Under such a case, you will make the right choice if you can utilize PayPal. With PayPal, you will not need a lot of information about the recipient.

There are several services offered online where the service providers will not like to reveal their real names or give out more information. In such a case, you can get an email address and it will be possible to make transactions.

Transferring money in the same country.

You will save money if you are utilizing PayPal in the same country. You will not be exposed to currency conversion fees. It is even convenient because you can utilize the prepaid MasterCard to access funds in local ATMs or make payments in stores.

Things will change for worse if you can travel abroad and try to make payments via the PayPal prepaid cards.

Paying for goods in online stores.

PayPal has simplified everything when making payments in online stores. There are several online stores where you would like to make payments easily. The platform has inbuilt security measures that will protect your funds from fraud.

Many online stores that accept PayPal have complied with several security features. It is hard to get coned if you pay via PayPal.

Their website integration feature makes it possible for shoppers to pay via the click of a button. It has simplified the way people pay for goods and services online.

The best scenario for the TransferWise method.

There are several scenarios where you will save money if you opt to pay via TransferWise. Here are some of the cases where you will be better off if you choose to pay via TransferWise:

Saving on foreign transfers.

You may like to transfer money abroad but you are looking for ways you can keep the transfer fees at the minimum. In such a case, you will make the right decision by opting for TransferWise.

The method makes the whole transfer process easy. You will not have to incur transfer fees or additional charges in the process.

Running a multi-currency account.

Some businesses require you to have a multicurrency account. For instance, when traveling abroad, you would like to access money in any country.

It is possible to access funds in any location if you have a TransferWise account. The account can hold funds in different currencies to allow you to access the funds in any location.

Avoiding exchange rates when traveling abroad.

You may have realized you lose a lot of money when traveling abroad due to high exchange rates. It is possible to make a difference if you can opt for the TransferWise account. You can utilize the debit MasterCard to access the funds in any location.

If you travel a lot, you will end up saving a lot of money if you can opt for the TransferWise MasterCard. It makes the whole issue of accessing funds when abroad easy.

Both TransferWise and PayPal have some similarities. You will find TransferWise appropriate when sending money abroad or when traveling to different countries.

On the other hand, PayPal works well when shopping online. It integrates with eCommerce sites making it possible to pay online securely.

There are several security features employed that make the whole process of paying for goods and services online safe and reliable. PayPal requires only an email address to also send money.

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