Transferwise Vs Paypal – The Toughest Decision To Choose From

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Do you often have to transfer money to a country with a different currency? Or to your son or daughter who lives abroad? The charges related to the currency conversion might seem a little too much for you at times. But don’t worry anymore. In this article, we have elaborately pointed out the prime differences between Tansferwise and PayPal. The elaboration will help you to compare Transferwise vs PayPal and also help you out to opt for the best choice out of the two.

Table Of Contents:



Transferwise is an online media through which you can send money or work for a client of a country with a different currency. They charge quite reasonable fees for their work, but the most beautiful part of Transferwise is that they are free of any margin on the exchange rate.

This online money transfer service was invented in 2011 for the smooth transfer of money from companies to companies. Transferwise is a great platform to work with for several reasons. For example, you don’t have to request payment from others overseas, and you don’t have to pay a hefty fee over the whole process. The fantastic transparency over adequate costs makes it even more convenient.

Transferwise’s Peer to Peer transfer model makes it a reliable medium. It allows the users to transfer their money to their designated country without actually sending their money for real. As a result of this, Transferwise charges fewer fees on the overall amount. This quality has been successful enough to make it a popular online money transfer service to use all over the world.


PayPal was first formed in 1998. After that, it had become an outrageous medium and one of the most widely known all over the world when it became eBay’s method of paying. It has become so famous that we can assume that even you, who is reading this article has a PayPal account set up.

PayPal works marvelously when you transfer money within one country. It works great for those people who are doing their money transfers online to clients or friends and families within the same state. However, when you are willing to send money abroad or to a country with a different currency, PayPal becomes comparatively expensive. PayPal keeps a high amount of charge on the margin of the exchange rate in terms of currency conversion.

Things to admire about Transferwise and PayPal:

Things to admire about Transferwise:

Things to admire about PayPal:

Things to dislike about Transferwise and PayPal:

Things to dislike about Transferwise:

Things to dislike about Transferwise:

Transferwise Vs. PayPal:

The cost difference between Transferwise and PayPal:

We, human beings, often look for or opt for services that will provide an overall outstanding performance at the cheapest cost. This is why people don’t rely on banks since the banks have an excess transfer fee associated with currency conversion. And it becomes hard for most of us to transfer our money to a different currency country frequently. However, PayPal also charges a high amount on the money conversion rate, and thus, we are still looking for a better option to rely on.

Fortunately, we have encountered a new service called Transferwise, which has been successful in keeping the exchange rate low. Moreover, it has been doing a fantastic job in the addition of any hidden charges, which are comparatively more costly in PayPal.

The Exchange Rate difference between Transferwise and PayPal:

Exchange rates are what cause a massive difference between Transferwise and PayPal. Nowadays, it has become a regular thing that the financial companies are going to charge a little and deduct some from the amount that an individual is willing to send. This results in making the actual amount lesser than the rates of exchange.

Well, the good news is that Transferwise makes use of the mid-market rate and does a fantastic job on the exchange rate of the money conversion. Nobody can beat Transferwise in terms of money transfer rates.

In contrast, PayPal charges an extra amount of about 2.5% to 4% on the overall fees saying that they take the wholesale rate, which is provided by the banks. For the currency exchange in your account, they will charge about 2.5%, whereas, for the general currency exchange, they will cost about 3.5% to 4%.

We can, by now, make a secure guess on who is the clear winner in the fight of Transferwise vs PayPal in terms of exchange rates. Transferwise was and is the most convenient tool when one thinks about the exchange rates.

The speed difference between Transferwise and PayPal:

Likewise cost, speed plays a significant role in currency conversion and is an attractive part that most of us have a look at. Transferwise promises that the transfers will be accomplished within 1-4 working days after they have received a particular payment.

On the other hand, PayPal claims to take 3-5 working days must. So again, we are sure about giving the title of the winner to Tansferwise. Though both the companies claim to finish their transfers within five days, in most cases, Transferwise takes the least time, which is mostly one or two business days.

Convenience difference between Transferwise and PayPal:

Signing up for both companies is easy and hassle-free. You just need to type your name and an email address to open your account in Transferwise. Sometimes, you can also log-in through Facebook or even Google account. In the case of PayPal, you might have to add a few more details about you. However, in reality, it’s all the same compared to Transferwise since, in Transferwise, you have to put in extra information about you while the money transfer. It’s just a smart trick of Transferwise to make it seem more manageable for the customers to sign-up for it.

The very first step of the money transfer is you have to transfer the money from a bank account to your account while living in your home country. There is an alternative to this, which is you can use a card to make your payments, but it makes the whole process a bit more expensive.

Now let’s talk about the money transfer. PayPal has an advantage here, which is it’s one of the most famous and widely used services by most of the people all over the world. So, if you are sending money to someone abroad, the plus point is that the person is most likely to have already signed up for a PayPal account. And thus, the money transfer is just a confirmation away. All you have to do is typing in the email address of the PayPal account you are going to send the money and the associated amount.

So, the decision to choose the winner in the fight of Transferwise vs PayPal depends on the person you are going to send the money to. If you are going to send the money to a bank account, then Transferwise can be announced as the winner. However, if you are going to send the money to a user of PayPal, then PayPal does the most effective job here of becoming the sheer winner.

Security difference between Transferwise and PayPal:

When we want to transfer money, security is the crucial factor that we focus on. Being amazingly efficient companies, both PayPal and Transferwise, guarantee incredibly high security. To give you more clarity, we can say that Transferwise has been successful in transferring 800 million GDP every month. Likewise, PayPal has also been successful in processing $315.3 million of money transfers almost every day.

The winner in the comparison of Transferwise vs PayPal, in this case, is quite the both. It’s just the human error that can affect the security issue. Since the money transfer is just a confirmation away, it is likely for you to make mistakes and send the money to the wrong person. You have to be very careful while doing so since once gone, and the funds cannot be retrieved back. Not only that, to ensure high security, it’s wise for you to change your passwords regularly. You should try to implement long and complicated passwords so as not to make it easy to decode it.

Debit card difference between Transferwise and PayPal:

Transferwise provides a free Mastercard debit card to its users, which is combined with a multi-currency account. It becomes more comfortable for the users to make payments to any part of the world and also carry out a lot of activities that require the involvement of the card. This card can be used in stores to make payments or can be used all over the world to withdraw cash from the booths. You can do this with no expensive conversion fees.

Another beautiful thing is that the card can automatically make use of the most convenient and accurate currency available among all the others. It helps to keep a balance while making any purchase or withdrawal. The reason for this is the borderless account attached to it, which can quickly identify the most suitable currency to make use of at the proper time.

However, PayPal users can request for a prepaid card which has no facilities of the currency conversion processes. Moreover, the top-ups and the frequent unavailability of using the card will result in high charges to be paid by the users.

Customer Review difference between Transferwise and PayPal:

Although PayPal claims to provide customer service 24/7 a week through calls and emails, we have researched through a lot of customer reviews. We have encountered complaints against their customer service support. They claimed not to have the proper support from the customer care service, and this kind of criticism has become a common thing to see about PayPal.

Adding to this complaint, there are other complaints which we have seen a lot, and these are based on the receiving of inaccurate information, the long waiting times, and the sudden freezing of the account.

On the other hand, Transferwise’s customer service provides their support 24/7 through calls, emails, and even live chats. Shockingly, their customer service is seen to get a vast number of positive reviews by the users. No specific recurring complaints have been noticed except for the long waiting times, which is pretty much a common problem witnessed in almost all customer services.

Frequently Asked Questions:


Q. Which one should be used for a business? Transferwise or PayPal?

A. Transferwise would be wise to use as a source of income since you are likely to have more profits with the minimum exchange rates. Freelancing will work excellent if Transferwise is used as the medium of transfer of money. However, there can be situations where you might not be lucky enough. So, you must be careful about how much money you are transferring every time.

Q. Which one is overall the best company for money transfer out of Transferwise and PayPal?

A. According to our researches, we can guarantee you that Transferwise would be the best company to rely on for the money transfer process. Transferwise has got the least fees associated with the currency conversion in Transferwise.

Now, you must know when to use Transferwise or PayPal or when the usage of these specific services can fruitfully benefit us.

When to use Transferwise?

No matter how best or how worst Transferwise is, there are certain situations when Transferwise can be amazingly effective if made use of. Below down are the times when Transferwise should be used:

When to use PayPal?

Likewise Transferwise, PayPal has also got its own benefits when used at the right time and in the right way.

Key Points:

Final thoughts:

In the fight between Transferwise vs PayPal, we can say that Transferwise is the clear winner. It helps you when you don’t want to lose much of your amount while transferring your money abroad. Transferwise charges free on the exchange rates and only charges a small percentage on the overall amount transferred as a fee.

However, that doesn’t mean that PayPal is the least advantageous one. PayPal is very convenient since it just requires an entrance of the email while transferring money. PayPal is very efficient when you want to move a small amount of money because small amounts end up charging little of the exchange rates. But, for more copious amounts like $300, you must go for Transferwise because you don’t want to lose a hefty sum, just paying the charges of the transfer. In today’s world, both Transferwise and PayPal are doing unusual jobs from their own respective.

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Yousuf Hossain

Yousuf Hossain

Yousuf Hossain is a young passionate full-time freelancer who loves his work as his life. He has a dream that one day people will not only know him by this profile but also by his name for his passion and dedication toward work.

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