PayPal vs Wise — Which Costs Less for International Money?
These aren't quite direct competitors — PayPal is typically how you receive a payment, Wise is typically how you convert and move money afterward. See what each takes, then decide whether routing through both beats either alone.
| Sale amount | PayPal net | Wise net | Difference |
|---|---|---|---|
| $100.00 | $96.02 | $99.57 | Wise nets $3.55 more |
| $500.00 | $482.06 | $497.85 | Wise nets $15.79 more |
| $1000.00 | $964.61 | $995.70 | Wise nets $31.09 more |
PayPal and Wise usually aren't an either/or choice — they solve different steps. A common lower-cost path for freelancers and sellers: receive the payment through whichever processor the client already uses (often PayPal or Stripe), then convert and withdraw through Wise instead of letting PayPal handle the currency conversion directly, since PayPal's built-in conversion markup is typically higher than Wise's. Compare both below using your typical payment amount to see the combined cost of that two-step path versus PayPal alone.
Try your own numbers
PayPal
Commercial transactions (goods & services) rate for a standard US PayPal Business/Checkout account: 3.49% + $0.49 domestic. Cross-border transactions add a separate cross-border fee (typically 0.5–1.5% depending on country) plus currency conversion if applicable — the toggle above models a mid-range estimate. Micropayments and nonprofit rates differ.
Fee breakdown
Wise
Estimated 0.43% markup over the mid-market exchange rate for a typical major-currency corridor (e.g. USD→GBP or USD→EUR) sending via bank transfer. Wise's real fee is dynamic — it varies by currency pair, amount, funding method (card payments cost more), and changes over time. Always confirm the exact quote at wise.com/pricing before sending.
Fee breakdown
FAQ
Common questions
Is Wise cheaper than PayPal for international payments?
They solve different problems — PayPal is for receiving a payment from a client or buyer, Wise is for converting/moving money you already hold. Many freelancers receive via PayPal then move the balance internationally via Wise to minimize the FX markup, rather than treating them as competitors.
Why not just let PayPal convert the currency itself?
PayPal's built-in currency conversion markup is typically higher than Wise's mid-market-based markup. If you're converting a meaningful amount, withdrawing to a bank account and converting via Wise instead often nets more, even after PayPal's own withdrawal fee.
Does this apply to Stripe payouts too?
The same logic applies — if you're receiving via Stripe and need the funds in a different currency, comparing Stripe's built-in conversion against routing through Wise afterward can save money the same way.
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