Payments · Head-to-head comparison
Wise Business vs PayPal
Wise vs PayPal for international payments — how much PayPal's hidden FX markup really costs you vs Wise's transparent fees.
Wise pays out $65.60 more per $1,000 than PayPal. PayPal's combination of 2.9% receiving fee + 3–4% FX margin makes it one of the most expensive platforms for international payments.
Wise Business
3
metrics won
$995.50
per $1,000
✓ Winnervs
1 ties
PayPal
4
metrics won
$929.90
per $1,000
Wise Business vs PayPal: Full comparison
| Metric | Wise Business | PayPal | Better |
|---|---|---|---|
Receiving fee | 0% | 2.9% + $0.30 | Wise Business |
FX margin PayPal's rate includes a hidden FX margin on top of official fee | 0.45% | 3–4% | Wise Business |
Withdrawal fee | $0 | $0 (to PayPal balance) | Tie |
Net per $1,000 | $995.50 | $929.90 | Wise Business |
Client familiarity | Medium | Very high | PayPal |
Dispute protection | Limited | Buyer/seller protection | PayPal |
Countries supported | 80+ send | 200+ | PayPal |
Instant transfer | Varies | Instant (to PayPal) | PayPal |
Our verdict
PayPal's convenience comes at a steep cost. On $1,000 received from a US client, PayPal pays out ~$929.90 after fees vs Wise's $995.50 — a $65.60 difference. At $10,000/month, that's $787 a year staying in PayPal's pocket. Use PayPal only when clients insist on it. For direct invoicing, Wise is the clear winner.
When to choose each
Choose Wise Business if…
- Freelancers and contractors invoicing clients directly
- Anyone converting to local currency (INR, PHP, NGN, etc.)
- High-volume payments where fees compound significantly
Choose PayPal if…
- Your clients refuse to pay any other way
- You receive small amounts and spend in USD
- Marketplace transactions requiring buyer/seller protection
Frequently asked questions
How much more does PayPal cost vs Wise?
On $1,000 received and converted to local currency, PayPal typically pays out $929–940 vs Wise's $995.50 — roughly $55–65 less. On $5,000/month, that's $3,300–3,900 per year going to PayPal in fees.
What is PayPal's FX markup?
PayPal adds 3–4% above mid-market for currency conversion, on top of its 2.9% receiving fee. This combined cost makes it the most expensive major platform for international payments.
Can I avoid PayPal's conversion fee?
Yes — keep funds in USD in your PayPal balance and withdraw to a Wise USD account, then convert there at 0.45%. This avoids PayPal's conversion markup but PayPal still charges its receiving fee.
Compare all payment platforms
See the full rankings by net payout per $1,000