For the last 7 years, I have been running businesses online. When it comes to online payments your go-to is always PayPal. Although I used PayPal for years and still use it for some use-cases, I had to find a different solution. The high and hidden fees were too much for me, and although as a customer the 180 days dispute policy is great, it is one of the most exploited features when it comes to stealing from a business. I had to find a PayPal alternative.
A year ago I came across Wise – Online banking – A multicurrency bank account. After using it for 1 year I can say that this is definitely the best solution for me, and I’m pretty sure you can benefit from it too.
I was able to pay employees and services almost all around the world with ease and low fees, Transfer money worldwide into different bank accounts, make payments online, issue a business debit card, and much more. If you’re looking for an easy way to get paid online and worldwide, read this until the end.
Wise is a peer-to-peer international money transfer service that offers good exchange rates and low, transparent fees to send and receive money between currencies. It has been known as Transferwise since 2011, but recently rebranded in 2017 as ‘Wise’. This new platform will bring together both companies under one roof, with many believing it could be a strong competitor against the likes of PayPal and companies like Western Union. As far as my experience goes – I can definitely say that Wise is a great PayPal Alternative!
Feature comparison
Wise VS PayPal - General information
Hidden costs and fees
No hidden costs or fees.
Easy usage
Very easy to use and intuative.
Support and service
Chat and multilingual phone support is provided to provide the best service possible.
Limitation on transfers
There are different limits based on the country of residence. You can do bank to bank transfers, or Wise to Wise transfers.
Speed of transfer
It can take 2-4 days, depending on what currency.
Tools for business
You can issue employee debit cards and do bulk payments easily.
Security
Wise is a reputable company that has been regulated in the US, UK and more. They're also registered with Financial Crimes Enforcement Network (FinCEN).
Hidden costs and fees
Some hidden costs and fees.
Easy usage
Easy to use, less intuitive.
Support and service
Email, community forums and country-specific phone support is available to all customers.
Limitation on transfers
There are different limits based on the country of residence. You can do PayPal to PayPal transfers, and PayPal to bank transfers.
Speed of transfer
International bank transfers may take 2-5 days. PayPal to PayPal is instant
Tools for business
PayPal Gateway for online checkout, Easy donations, Invoice generation, Business debit card
Security
The company is regulated worldwide in almost every country including the FTC, the US as a money transmitter and on state-by-state bases.
Fees and hidden costs
Wise
International: Offers low-fee international transfers which amount to about 0.35% – 1.65% (may differ by the time you read this).
A single fee covers all your bases, with no surprises or additional charges!)
Domestic: Small fees may apply (they’ll show you). But don’t worry because we’ve got this!
There is always an option for paying via credit card if needed; 3% isn’t too bad when compared against other options out there in order get them done fast and easy without much hassle on either end.
PayPal
International: International money transfers can be expensive, so it’s important to know the different fees involved. For sending cash through PayPal’s service there is a fixed fee which depends on where you live in relation with their office locations around world (to find out go here). They also charge an exchange rate premium between 2.5-4.5% depending upon what country of residence – this covers costs like wiring funds directly into local banks or getting hard currencies such as US Dollars online before exchanging them onto local currency at competitive rates found locally rather than relying solely on conversion factors provided by external sources.
Domestic: You can now enjoy free access to your family and friends only, and just when it is funded by PayPal or bank account!
To withdraw funds from an ATM, you will likely be charged a percentage of the amount. This depends on where in the world that machine is located and can vary between free withdrawals with no fee to as much 3%.
The standard three-day waiting period before receiving your money back at home doesn’t exist when using credit or debit cards for international transfers. however, there might still come some additional charges depending upon his own location – such us 2% plus US-based banks rates.
Fees and hidden costs winner: Wise
Wise is a company that has lower rates and greater transparency for international transfers.
Wise has the best rates for international money transfers.
I compared it to other companies that specialize in this type service and found out they offer lower fees than even some competitors! Plus, if minimizing cost matters most when sending payments then definitely go with Wise because there are no upfront costs or hidden charges—just transparent prices right up front so you know exactly what your total price will be before anything gets done 🙂
Currencies and limits
Wise
Wise is a peer-to-peer transferring service that lets users send money anywhere in the world, with few restrictions on how much they’re willing to transfer locally or internationally. They have maximums per country depending upon your location – $1 million USD for local transfers within Americaounds continent but only up until about 1.6 million if sending abroad.
However, you may have a hard time sending these extra-large transfers.
You’ll need to check with your bank first and make sure it’s allowed in the receiving country!
PayPal
PayPal is an excellent way to send money internationally, but the company only supports 25 currencies for personal and business transfers. In order to use PayPal you will need a bank account with them as well!
Xoom is the only direct option for sending money to a recipient’s bank account. The transfer process works well, but it’s not available in all countries and on some platforms such as Facebook Messenger with its personal currency feature (review).
Though PayPal is a great way to send money internationally, there are some limitations for both personal and business transfers. They also have a limit of about $60,000 USD per transfer in the US but you may be limited to only 10k for both domestic and international transfers.
Currencies and limits winner: Wise
Wise has many more currencies and higher transfer limits which make it the obvious winner.
Transfer speed
Wise
The speed at which you receive your funds depends on a number of factors including the amount being sent, what currency it is in and when this transfer was set up.
You can save yourself some time by using a bank transfer to send money. A lot of banks will deliver the funds within two hours, if you put in your request during business days and it’s not too far from when they’re closed for that day! When converting currencies, it can take less than a day for your money to be on its way, sometimes two days. In extreme cases it can tak a bit longer, but not something that I encountered.
Whether you’re transferring over the weekend or during a bank holiday, expect slower speeds.
PayPal
When it comes to PayPal to PayPal transfer, it is instant. When sending money internationally, it can take a couple of hours for the transaction to finish and show up in your recipient’s account. Xoom is a great way to send money internationally, but remember that it can take 3-5 days for the transfer.
When withdraw PayPal balance to bank account, it may take 2-3 days depending on your location. For instant withdrawals there is an applicable fee (1%-3%)
Transfer speed winner: Wise
The difference between Bank-to bank transfer speeds can be significant, with Wise’s more evolved ways of funding transfers coming out on top.
Time to get Wise
Wise is a great PayPal alternative for several reasons.
First, it is easy to use and you have much fewer limits on transactions. Second, Wise charges lower fees than PayPal. Finally, Wise is transparent about its fees and how they are calculated.
As an online business owner the biggest factor for me was the fees. With PayPal I found myself paying ridiculous amount of money! If you are looking for an affordable and easy-to-use payment solution, I recommend opening a Wise account now.
