Work is becoming more global in these exciting times. There are many people that travel the world, work while they go, and send money back to their families. If you have a remote workforce, you’ll also have to pay for individuals in other countries.
Because of this, the days of sending money by ‘wire’ or having to wait a full day for a bank transfer are long gone. In other words, working two jobs to transfer money overseas is a thing of the past. Many online money transfer services are now available, making it easy to transfer money from one place to another.
It couldn’t be much easier to transfer money online: Simply log in, enter the information, and your cash are sent safely! The long-standing money transfer service PayPal is a popular choice among eBay and other online businesses.
TransferWise was started in year 2011 by two Estonians working in the UK who were fed up with the high costs they were paying to transfer money back home.
In comparison to the rest of your service providers, these two stand out. Which one is better? Let’s take a closer look at TransferWise versus PayPal to see who comes out on top.
What Is PayPal’s Purpose?
PayPal is the world’s largest online payment provider, with more than 250 million users worldwide. For example, you may use it to purchase and sell, pay overseas workers and bills, or move money throughout the globe.
PayPal allows users to link several bank accounts and credit cards so that everything is accessible from a single location. Registration and first transfers of funds to or from your bank account, as well as transfers between PayPal accounts, are both free. There are always going to be extra charges when transferring money to foreign nations.
First, the good news. PayPal is a user-friendly service with a slew of useful features. Request Money, for example, allows freelancers to generate, submit, and manage invoices. Because PayPal is so popular, many online businesses provide the option to pay by PayPal, which saves you from having to input your credit card information. The fact that it is so extensively utilised implies that it is accessible to the vast majority of people and very trustworthy. No need to be concerned about security here.
PayPal customers should be aware, however, of the costs that accrue when sending money across borders using the service. Depending on the exchange rate you’re offered and any additional fees, the total cost of a money transfer may range from zero to hundreds of dollars. Depending on the currency received, PayPal charges a fee of between 0.5 percent and 7.4 percent of the entire value of the transaction.
In addition to the additional costs, PayPal adds an additional 2.5 percent to 4 percent to their exchange rate when you use the service. They claim to utilise a rate offered by banks, however the inclusion of this makes it a highly unfavourable rate. Experts estimate that you might lose up to ten percent of the money you send if you include the costs.
The difficulty in finding this information might sometimes be disheartening concerning PayPal. There is no way to compare costs and limitations with other providers since only individuals with an account have access to this information, and calculations only display in the processing window.
What Can You Do With TransferWise?
It’s a newbie here. For its revolutionary money transfer method, TransferWise is causing quite a stir. In essence, it creates a network of users who move money in both directions in order to reduce costs and speed up the procedure.
Let’s have a look at one: I need to transfer £200 to a member of my team in the United Kingdom. At the same time, a buddy in New Zealand is receiving $200 in NZD from a UK resident. Our money isn’t being converted through TransferWise; instead, we’re just exchanging it.
If you’re comparing this to PayPal, the flat cost is just around 1%. There are no fees or commissions added to the currency rates they utilise! When paying with a debit or credit card, TransferWise charges a fee to the sender. On average, this cost is 0.5 percent, but it may reach a maximum of 1.6 percent. As a result, TransferWise charges a tiny fixed fee plus a small percentage of each transaction. And that’s all there is to it. Effortless, straightforward, and honest. You won’t get any surprises!
In addition to a simple-to-use software, TransferWise also features a widget that helps you figure out how much it’s going to cost you to utilise it. Syncing with numerous bank accounts makes transferring money between accounts in various countries a breeze.
You don’t need to have a TransferWise account to receive paid by a customer or to make a payment to someone else. Be aware that you can only send money to bank accounts.
TransferWise’s free debit card is an additional perk for users. If you are paid in USD, EUR, or GBP, you may have a separate bank account for each of those currencies and not have to worry about exchange rates.
You don’t even have to be a permanent resident to take advantage of this offer. This is a great option for digital nomads and long-distance explorers.
PayPal versus. TransferWise: Who Wins?
In our TransferWise vs. PayPal comparison, we’re quite confident you’ve already found out which service is superior. Are you still confused? And the answer is… TransferWise! Cost-wise, this is a huge advantage, since PayPal is far more expensive and less transparent.
When I moved to Finland, I discovered something that saved me hundreds of dollars in bank fees.
It’s worth noting that if you’re conducting domestic transactions or dealing with little quantities of money, PayPal might be worthwhile. It’s likely that whomever you’re working with has an account already. TransferWise isn’t available everywhere, however.
The whole user experience of TransferWise, on the other hand, is significantly superior. As a bonus, you receive a free debit card thanks to the simple and functional design.
In addition, it is much less expensive. If you haven’t done so before, now is the time to start incorporating it into your life. PayPal, you have served us well.
In advance of any adventure, here are some additional considerations.
So, now that you’re ready to explore the vastness of our planet, why not get everything else in order at the same time? Plan ahead of time if required to ensure you have enough travel insurance, a secure virtual private network (VPN) for your online safety and anonymity while travelling, an incredible rental car rate, and – of course – the cheapest airfare prices!
Alternatively, why not simply go on a last-minute cruise or an easy tour?
Airport lounge access is a popular perk for many low-cost travellers, including me. This allows us to enjoy certain luxuries while still flying economy. In light of the fact that we are unable to cover everything in this book, we would never leave home without a more general guide.
All you need now is a can-do attitude and lots of smiles — they go a long way! Once you’ve done that, I encourage you to share your finest tales of inspiration with me on Facebook, Twitter, and Instagram so that I can see them! I’d be delighted to hear from you if you have time.