Paypal vs TransferWise – Which One Should You Use?

Not using a suitable and reliable money transfer service to receive payments for your online course is a recipe for disaster.

To avoid this issue, most content creators either go for TransferWise (now known as Wise) or Paypal. 

While these are great options, one might not be suited to your needs. 

So, keeping in mind the pros and cons of Paypal and TransferWise, we have thoroughly compared these two to help you make the best choice. 

Features	PayPal	Wise
Transfer platforms	International transfers, Domestic transfers	International Transfers
Account Type	Personal use, Business accounts	Personal use, Business accounts
Transfer Method	Bank transfer, transfer by card, or transfer from account balance.	Bank transfer, transfer by card, or transfer from account balance.

This is only a general overview of our contenders. To get into more details, let’s dive in to explore PayPal and TransferWise in depth.

PayPal Review – Most Reliable Commerce Software

If you are looking for money transfer providers then you might want to consider PayPal. 

The good thing about this service is that you do not require the recipient’s bank account details in order to send money. 

You can simply email them considering both parties use a PayPal account. 

You would be glad to know that these transactions can be made internationally as well as locally through their Mastercard debit card or credit card.

In our opinion, the best thing about PayPal is that you can make immediate transactions online, by QR Code, in person, and by phone or email. 

Pros	Cons
• Ensures security  • Promises seller protection • Instant PayPal-to-PayPal transfer • Great for merchant payment gateway. • Multi-currency account • Easy to use	• High fees for international money transfers • High exchange rates • Does not allow direct bank transfers

Benefits of PayPal 

We have found that PayPal’s security system is incomparable. It does not offer it as an additional feature, rather it is built into the system to ensure safety. 

We observed that this software is an easy and quick way to transfer an amount, where you can also spend funds straight away with PayPal Business Mastercard and earn cash-back on purchases.

After using PayPal we found that it also holds multiple currencies in a digital wallet. This allowed us easy and free-of-cost local bank transfers which makes sending money through this platform the most viable option.

We also observed that PayPal is especially beneficial for businesses as it helps: 

• Tap into new marketplaces
• Sell internationally
• Accelerates growth

After thorough research we discovered that you can streamline business operations with PayPal:

• Control cash flows and withdraw funds
• Settle disputes quickly by quick tracking
• Manage and resolve discourse

You can make a PayPal business account with zero setup charges, which will make business transactions for online courses easier.

Factors to Consider Before you Decide to Buy PayPal 

Currency Conversion Fees

If you’re looking for a cross-border transfer, you should be aware that there are three additional fees.   

The fee structure is divided into:

• Currency conversion fee of 2.5%-4%
• Cross-border fee of 0.5% 
• Fixed fee on transfer amount of €1.99 for Canada, Europe and US and €3.99 for other foreign countries.

However, there are zero fees for local users.

Business Benefits

You can use the PayPal payment gateway to buy goods or services by your PayPal account or credit or debit card. 

PayPal offers more business solutions for accepting micropayments which may prove to be more useful for selling low-cost products.

Mid Market Exchange Rate

You should know that PayPal costs are higher as they add a 3% increase in the true mid-market rate when converting to foreign currencies. 

Ease of Use

PayPal is very user-friendly, signing up for a PayPal account is super easy. You can avail of their services through your iOS and Android devices.

This multilingual platform will help you access and reach a wider audience of students allowing you to grow your online courses business worldwide in many languages.

Security

We discussed before that, PayPal protects your personal accounts and bank details by offering a secure payment system. You will be notified of fraudulent cases through their anti-fraud detection system. 

What Do the Customers Think?

PayPal is a right-hand tool for many since the payment method is extremely convenient and easy with no charges for national transfers. Customers find it a reliable way for online buying as it filters between credit card and bank account separately. 

Although PayPal fees are a bit high, customers love it because its money transfer service is quick and takes only a few seconds. This makes transferring money more convenient and thus the online shopping experience far easier.

Best Online Money Transfer Service for sending money

PayPal has proven to be a very efficient way to transfer money online. It is especially beneficial for businesses with its merchant scheme, security, and additional features for business PayPal accounts. You can send money hassle-free from the comfort of your own space.

TransferWise Review – Affordable and TransferWise

If you want to market or sell your online course to an international audience, we highly recommend the money transfer company, TransferWise (now known as Wise). 

We found that this multi-currency account offers its services 6x cheaper and faster than other money transfer services like Payoneer.

You can transfer money at the actual exchange rate with no hidden fees. 

You can receive payments like a local user of this platform in ten currencies by getting your own: 

• UK account number
• US routing number
• Euro IBAN

You also receive salaries, profit from shares, pension, and invoice payments in other regions worldwide.

If you are planning to use their borderless account, you can avail of their services at extremely low prices. You should know that they do not offer subscriptions and you can exchange currency at the real exchange rate.

Pros	Cons
• Low cost • Transparent fees • Routinely Regulated • Internationally approved Mastercard Debit Card • Easy to use • Additional Business Tools	• Takes a few days to send money. • Card-to-bank or bank-to-bank transfers only

Benefits of TransferWise

We found that Wise (formerly known as TransferWise) allows you to pay at lower exchange rates and does not charge any annual charge on your card. 

Moreover, you do not require foreign currency to make payments internationally since the debit card will automatically convert it into their local currency. 

Wise allows transferring money in more than 200 countries which allows you to offer courses worldwide.

Factors to Consider Before you Decide to Buy TransferWise

Currency Conversion Fees

TransferWise (now known as Wise) transfers the amount from their own account to the recipient’s country on a receipt which cuts down cross-country costs. The fee structure involves: 

• Variable transfer fees at a rate of 0.33%-3.56% 
• Fixed transfer fees of €0.50. 

Middle Market Exchange Rate

The mid-market rate for TransferWise has a low fee on international transfers of 0.35%-1.65% of the amount to be transferred which is quite lower than PayPal.

However, Wise does add some fees for these services which increases this rate but still remains lower than PayPal.

For domestic use, there is a 3% cash advance fee with a credit card. 

Business Benefits

Wise (formerly known as TransferWise) requires a sufficient amount of balance to be present in a Borderless Account for which it reminds the owner to ensure funds are made in the multi-current account.  

It also offers scheduled transfers which in turn reduces admin for standard weekly payments to the staff and suppliers.  

Transparent Conditions

The customer funds are separated from business banking actions and TransferWise is regulated completely by FCA.

Finding a money transferring platform that offers beneficial services, smooth operations, and low costs is extremely important. Especially if you are looking to sell courses online, you need to consider the financial situation of your students. 

TransferWise fulfills every check-point on the list of things you might need from an online money transfer service. 

However, it does not have good customer support. When we called customer services, there was a long waiting period after which the service provided was not knowledgeable on the questions and the representative sounded uninterested in helping.

What Do the Customers Think?

This platform is worth the money with great funding options. Its low rates coupled with efficient and rapid transfers make it super popular. 

It is especially helpful for handling international currencies as it holds several at the same time making it the most reliable service for this purpose. Coupled with smooth, quick, efficient transactions, this platform beats traditional banking activities. 

Best Money Transfer Service for International Transactions

Sending money or receiving payments through Wise is most convenient. Its multi-currency account makes international transfers easy. Moreover, low transaction fee and usage of the actual mid-market exchange rate allows reduced costs.  

TransferWise vs PayPal – Buyers’ Guide

When planning to create courses, the main factor you need to consider is…

“How will the audience receive these courses online?” 

You need to make it convenient for them to be able to avail your services. 

In order to make this happen, you must consider a platform through which your audience can receive or make payments most easily. Smooth operations will help your objective more than you can think of. 

To choose the best service for this purpose, some important factors to consider are:

• Is this platform safe?
• Is it easy to use?
• Is it cheap?
• Is it reliable?

In this section, you will be able to deduce which option to choose by answering all your questions:

Mid-Market Rate

Exchange rates are already quite high depending on the currency you are converting to. 

Since you might require your services to reach as many countries as possible, consider a money transferring platform that offers services in the majority of the countries. 

Furthermore, you might want to look into the fees these platforms charge for currency converting services. 

Whilst some convert for free, some might add hidden charges which can translate into higher costs. 

Ease of Use

You might want to consider a money transferring service that comes with minimal complexities for the comfort of your audience. Look into options that offer straightforward steps to follow, quick registration, and easy transaction processes. 

Security

The most important aspect that factors into the decision of which platform to choose is: 

Which platform will offer the best safety to bank details and will be most effective in safeguarding your account balance. 

Any transactional platform can provide services, but regulated ones with approved security systems go a long way.

TransferWise vs PayPal – Final Verdict

This concludes our article for the best platform for transferring money domestically and internationally. 

Both of the competitors offer additional business tools, are regulated and offer great safety, have excellent transfer speed, are user-friendly, and come with extremely beneficial extras.

While PayPal adds to costs thus making the overall expenditure incurred sky-rocket, Wise has no hidden costs, has excellent reviews, and comes with a greater transfer limit.

There are quite a lot of countries on the East Coast like Afghanistan, Sudan, Bangladesh, etc. where PayPal services are not offered. In these cases, it is better to consider the services of Wise.  

Thus at the end of the day, if you are looking for affordable services from money transferring companies, then TransferWise is definitely the way to go.