Payments · Platform review
PayPal
Ubiquitous but expensive — highest FX margins and receiving fees of any major platform.
$66 less per $1,000 than Wise Business
Verdict
PayPal is the most recognised payment brand globally, and that ubiquity is its main value. Financially, it's the worst deal of any platform here: 3.49% + $0.49 receiving fee plus a 3.5% FX margin means you keep just ~$930 of every $1,000. Use it only when a client has no other option, then withdraw and convert via Wise immediately to avoid holding in PayPal's inferior conversion system.
Fee breakdown
Example: $1,000 invoice, US client → your local bank
Pros & cons
Pros
- Accepted in 200+ countries — widest reach of any platform
- Clients trust it — no account setup needed for payers
- Instant payment receipt
- Buyer and seller protection on goods/services
- Easy invoicing for one-off clients
Cons
- 3.49% + $0.49 per transaction — highest receiving fee of any platform
- 3.5% FX margin on currency conversion — 7x worse than Wise
- Funds can be held or frozen without warning
- Poor customer support for disputes
- Total cost on $1,000 received: ~$70 vs ~$4.50 on Wise
Best for
Supported corridors
Platform integrations
Frequently asked questions
How much does PayPal take on international payments?
PayPal charges 3.49% + $0.49 for receiving payments from international clients (commercial transactions). On top of that, converting to your local currency costs 3-4% above mid-market. On a $1,000 invoice, you might receive the equivalent of $925-935 after all fees.
Can I avoid PayPal's conversion fees?
Partially. Withdraw your PayPal balance in USD (or the currency received) to a Wise multi-currency account, then let Wise handle the conversion at ~0.45% margin. This saves 2-3% on the conversion step, though you still pay the 3.49% receiving fee.
Is PayPal safe for freelancers?
PayPal is regulated and widely used, but has a reputation for account freezes and fund holds — sometimes without clear reason. For a side project or one-off payment, it's fine. For your primary income stream, always have a backup platform (Wise or Payoneer).
Do clients need a PayPal account to pay me?
No. Clients can pay a PayPal invoice with a credit or debit card without creating an account. This convenience is one reason freelancers keep it as an option despite the fees.