Wise vs PayPal - 2025
Wondering which is better, Wise or PayPal? This PayPal vs Wise review is here to help. We’ll cover:
- The verdict: Which is better, Wise or PayPal?
- Wise vs PayPal fees
- Wise vs PayPal: which is cheaper?
- Wise vs PayPal exchange rates
- Wise vs PayPal: which is faster?
- Wise vs PayPal international transfer limits
- Wise vs PayPal business
Read on to help you decide if Wise or PayPal will suit your needs best.
Summary: Wise has multi-currency accounts you can use to receive, hold, send, spend and exchange many global currencies with the mid-market exchange rate and low, transparent fees. PayPal mainly offers services for online shopping and PayPal to PayPal transfers, so the chances are that which is best for you depends on the type of transaction you need to make.
Wise vs PayPal: side by side
Feature | Wise | PayPal |
|---|---|---|
Send payments to | Send to bank accounts and wallets like GCash | Send to PayPal accounts only |
Supported countries for international payments | 40+ countries | Receive in 200 countries |
Multi-currency accounts | Available for 40+ currencies | Hold and convert 25 currencies in your PayPal account |
Debit card available | Y | N |
Fully licensed and regulated | Y | Y |
Open a business account | Y | Y |
*Details correct at time of research - 20th May 2025
So, to summarize:
PayPal supports payments to more countries, but you can only pay to another PayPal account
Both PayPal and Wise offer options to hold and convert currencies - Wise accounts can handle more currencies
Wise has a debit card you can use for payments and cash withdrawals - PayPal does not
Both providers are fully regulated, and offer both personal and business services
PayPal started as a payment platform for online shopping, and has related services such as domestic and international payments between PayPal accounts.
Wise is a specialist in international payments to bank accounts, and offers safe, fast and low cost transfers which use the real exchange rate. Wise also has account services and cards which are helpful for holding, receiving, sending and spending a broad selection of currencies.
The important bits
Wise | PayPal | |
|---|---|---|
Rates | Mid-market exchange rate with no markup | Exchange rate includes a markup of 4% |
Fees | Low fees, varies by destination | Fee of the equivalent of 4.99 USD when funded with bank transfer or PayPal balance Additional fee of 3.4% when sending with a card |
Speed | 60%+ of transfers are instant (completed under 20 seconds), 80%+ are delivered in less than 1 hour* | Can be instant |
Service | Online, in app and by phone | Online, in app and by phone |
Regulation | Fully regulated and licensed | Fully regulated and licensed |
Reviews (Trustpilot) | 4.3 Star, Excellent rating, from 258,000+ reviews | 1.3 Star, Bad rating, from 33,000+ reviews |
*Details correct at time of research - 20th May 2025 *The speed of transaction claims depends on individual circumstances and may not be available for all transactions
Rates: Wise uses the mid-market rate, whereas PayPal may charge currency conversion fees in the form of an exchange rate markup of 4%
Fees: Wise has variable fees which are based on the destination country, PayPal international payments from personal account have a fee which starts from the equivalent of 4.99 USD
Speed: PayPal payments arrive almost instantly if you’re sending to someone who already has a PayPal account. Wise payments can be instant
Service: Both providers offer multilingual service in a range of languages, online, in-app and by phone
Regulation: Both providers are fully licensed and regulated
Reviews: Wise has a 4.3 Star, Excellent rating, from 258,000+ reviews, PayPal has a 1.3 Star, Bad rating, from 33,000+ reviews
Pros and cons
Wise | PayPal |
|---|---|
✅ Mid-market exchange rates + low fees ✅ Receive payments with local and SWIFT account details | ✅Global coverage |
❌ Online and mobile payments only - no branches ❌Transfer fees vary by destination country | ❌ Exchange rate markups ❌Send from one PayPal account to another only |
The verdict: Which is better, Wise or PayPal?
So - is Wise better than PayPal? That really depends on what you need to do.
PayPal is a really popular and convenient way to shop online and send money quickly to friends. Making a domestic payment is often free - but when it comes to international payments, there can be hefty fees and an exchange rate markup. Transfers with PayPal are deposited into your recipient’s PayPal account - if they want to withdraw their payment they may need to wait several days for it to arrive in their bank account, or pay a fee for a faster withdrawal.
Wise is a specialist in transfers direct to bank accounts and mobile wallets like GCash, and offers the mid-market exchange rate with low, transparent fees. Wise also offers a multi-currency account with a linked international debit card.
If Wise supports payments to the country you’re sending to, and you want your transfer to be delivered to a bank account, they may be your best bet. If you’re looking to send a domestic payment, PayPal is a convenient alternative - plus PayPal is excellent for online shopping.
About Wise and PayPal
Wise was launched as TransferWise back in 2011 as a low-cost international payment provider. These days, Wise also offers personal and business accounts to hold and manage currencies, accept payments and spend using a linked debit card. With Wise you can send payments to 40+ countries.
PayPal was founded in 1998, and has millions of customers with more or less global coverage. You can send payments all over the world from one PayPal account to another, and you can use PayPal to shop securely online.
How do they work?
To use Wise you’ll need to create an account, and depending on the type of payment you want to make you might need to provide some ID for verification.
Once your account is up and running make payments online and in the Wise app:
Log into your account
Type in how much you want to transfer, or how much you need the recipient to get
Enter the recipient’s details - bank account number or email
Check over the details
Fund your payment using a card or bank transfer
Confirm and your money will be on the move
Wise transfers are made through Wise’s network of local accounts, so they arrive fast and don’t incur intermediary fees. When you want to pay for your transfer in pesos you’ll send the money to Wise’s local account in the Philippines. Then Wise will make a payment of the equivalent amount in your preferred currency, from their account in the destination country. No money actually moves across borders, so it’s fast and cheap.
If you already have a PayPal account, it's easy to send money. Setting up a PayPal account only requires a few personal details and can be done entirely online or in the PayPal app. Here’s how to send money internationally:
Log into your account and select Send & Request
Enter the email address, mobile number or name of the recipient and click Next
Enter the amount, choose the currency and add a note
Select either Paying for an item or service, or Sending to a friend, depending on the situation
Click Continue
Select the payment method you want to use
Review and hit Send Payment Now to complete your transaction
Wise vs PayPal fees
It can be a bit tricky to unpick Wise vs PayPal fees as the services they offer are quite different in places. Compare both by looking at their fee schedules which you can find online or in the provider’s app. Here’s a summary:
Service | Wise | PayPal |
|---|---|---|
Open an account | No fee | No fee |
Order a card | One time fee applies | Not applicable |
Spend with your card | No fee to spend currencies you hold Currency conversion from 0.57% when you don’t hold the right balance | Not applicable |
ATM withdrawals | 2 withdrawals a month, to the value of 12,000 PHP free - low, transparent fees after that | Not applicable |
Receive a payment | Free to receive payments in select currencies using local account details Fees apply to receive payment via SWIFT, which vary based on the currency | No fee to receive a payment as long as no currency conversion is needed |
Send a payment | From 0.57% | No fee to send a domestic payment and pay using bank transfer or PayPal balance 3.4% + fixed fee for domestic payments using card International payment fee 4.99 USD when pay using bank transfer or PayPal balance International payment fee 4.99 USD + 3.4% + fixed fee when using card |
Currency conversion | Mid-market exchange rate | 4% fee applies |
Wise vs PayPal: which is cheaper?
If you need to send money to someone overseas, choosing an international payment specialist can be cheaper than sending money using your bank. However, as fees and rates do vary, it still pays to compare a few providers before you pick. Here’s how PayPal vs Wise work out on their international transfer costs.
Wise is a specialist in overseas payments and fees can be as low as 0.57% for overseas transfers. Currency exchange uses the mid-market exchange rate.
PayPal personal customers pay the equivalent of 4.99 USD to send money from their PayPal balance to a PayPal account based overseas. If you pay with a card you pay this, plus 3.4%, plus a fixed fee that’s determined by the currency. PayPal currency conversion also costs up to 4% of the converted amount.
Wise vs PayPal exchange rates
Before you use your account for currency exchange, you need to know the currency conversion rate that will be applied - including any fees which are added here.
Wise uses the mid-market exchange rate for currency conversion, with conversion fees from 0.57%. The costs which apply can vary depending on the currencies involved, but all fees are split out for clarity.
PayPal currency exchange rates cost an additional 4% of the converted amount.
Wise vs PayPal: which is faster?
With Wise, 60%+ of transfers are instant (completed under 20 seconds), 80%+ are delivered in less than 1 hour. From PayPal you’ll usually send money to other PayPal accounts, which can be instant - but if the recipient then wants to withdraw their money to a bank this may take a few days.
Wise vs PayPal international transfer limits
The amount you can send with Wise vs PayPal depends on a number of factors including the currency involved.
Wise has high limits which vary by currency, usually around the equivalent of 1 million GBP. PayPal transfers may be capped at either 10,000 USD or 60,000 USD.
Sending large amount transfers
Let’s look a little closer at each provider in case you need to send a high value payment.
Wise high amount transfers
Wise has high limits which vary by currency, usually around the equivalent of 1 million GBP - but the amount you can send can also vary according to the way you want to pay. In the Philippines you’ll need to use PESONet for very high value payments, and you can use InstaPay for transfers up to 50,000 PHP.
You’ll need to provide some supporting documents for a high value payment, to prove the money was legitimately sourced - you’ll be helped through this process by a team member if it’s required.
Wise also offers volume discounts on fees. If you send more than the currency equivalent of 20,000 GBP a month you could get an automatic discount of up to 0.17%. There’s no need to pre-arrange the fee. Here’s how the Wise high value payment discounts break down:
Payment volume (GBP) | Discount |
|---|---|
Under 20,000/month | 0 |
20,000 – 300,000/month | 0.1% |
300,000 – 500,000/month | 0.15% |
500,000 – 1million/month | 0.16% |
1 million+/month | 0.17% |
PayPal high amount transfers
PayPal transfers may be capped at either 10,000 USD or 60,000 USD. PayPal does not market volume discounts on fees or exchange rates.
Wise vs PayPal: Payment methods
Make a PayPal international payment using a credit or debit card, bank transfer or your PayPal balance. Wise typically allows bank transfers, card payments and Apple Pay payments. Send payments to your recipient’s bank account or wallet - like GCash - directly with Wise. PayPal transfers are deposited in the recipient’s PayPal account
Wise vs PayPal business
Both Wise and PayPal have business features, but they do vary a lot. Here’s a quick summary:
Wise Business | PayPal Business |
|---|---|
|
|
Ease of use
Creating an account:Create your account online or in app with both PayPal and Wise
Making a transfer: Make a PayPal international payment using a credit or debit card, bank transfer or your PayPal balance. Wise typically allows bank transfers, card payments and Apple Pay payments
Ways to send money: Send payments to your recipient’s bank account directly with Wise. PayPal transfers are deposited in the recipient’s PayPal account
Languages: Both PayPal and Wise offer multi-lingual support services
Minimum & maximum amounts: Wise sending limits can vary by destination country, and based on your account type. PayPal limits are either 10,000 USD or 60,000 USD.
Supported currencies
With Wise you can send money to 40+ countries, and hold 40+ currencies in your account. With PayPal you can hold and convert 25 currencies in your PayPal account and receive transfers to your PayPal account in 200 countries.
Are they safe to send money with?
Yes, both providers are safe to use as long as you apply normal common sense precautions like keeping your log in details secure and only sending money to people you know and trust. Both Wise and PayPal use industry level security features to secure customer accounts and to protect payments, including 2 factor authentication and encryption technology.
Are they regulated in the Philippines?
Yes.
Wise Pilipinas Inc. is licensed by the Bangko Sentral Ng Pilipinas (BSP) as a Remittance and Transfer Company.
PayPal is regulated by the Bangko Sentral ng Pilipinas as an Operator of Payment Services in the Philippines under the National Payment Systems Act.
Wise vs PayPal customer service
The easiest way to get help with Wise or PayPal is to log into the provider's app and open a live chat.
This means you can be connected to an agent who can help you, or pass you on to another team or individual who can provide subject specific support.
If you have an urgent issue you can also log into PayPal and call them using the phone number that is available after logging in.
Conclusion: Comparing Wise and PayPal
When it comes to making international payments, the services offered by PayPal and Wise are pretty different.
Wise is a specialist in international transfers that are delivered directly to the recipient’s bank account. PayPal transfers are deposited in the recipient’s PayPal account - if they want to withdraw the money to their bank they may need to wait a few days or pay a fee.
Wise also offers additional services compared to PayPal Philippines, including a debit card you can use to spend and withdraw. The other major differentiator is on cost and transparency. Wise international transfers use the mid-market exchange rate with no markup, and a low fee. PayPal payments may have higher fees, and a currency conversion cost - a markup - is added into the available exchange rate. This means that sending money internationally with PayPal might be more costly than using Wise. Compare both options on cost and convenience depending on the services you need most, to help you decide which is best.
FAQ
Wise and PayPal are quite different businesses and will suit different customer needs. Wise is a specialist in international transfers and low cost currency conversion, with holding accounts and debit cards for convenient spending. PayPal has accounts with huge global brand recognition and trust, which are used mainly for online shopping and sending payments from PayPal to PayPal.
Both Wise and PayPal accounts offer great features and services including ways to get paid in select currencies. Wise has lower fees on many transaction types and uses the mid-market rate, while PayPal offers global recognition and secure online shopping.
Both have different services available, with different fees. Generally Wise has transparent fees and uses the mid-market rate. PayPal has low or no fees for many domestic services but international transactions can be fairly costly. Compare both for the transaction you need to see which is best.
PayPal transfers can arrive almost instantly in the recipient’s PayPal account - but withdrawing the money to a bank account may take a little longer. Wise payments can be instant, and the vast majority will be in the recipient's bank account in 24 hours.
PayPal allows customers to hold a balance in 25 currencies and Wise supports 40 + currencies.