TransferWise or PayPal? Actually, I use both. But while a number of freelancers are already “transferring” to TransferWise to receive international payments, I have my reservations. I would still prefer PayPal, and here are some of the reasons why.
1. My Bosses Use PayPal
For the sake of convenience, my clients will use PayPal to send me payments for my written outputs. Most of them would mention no other available payment method. In fact, once I’d say I have a PayPal account, they would be thankful. You see, even if I have a TransferWise account, my clients would prefer sending money through their old, trusty payment pal. So, I just can’t get rid of PayPal in favor of TransferWise that easily.
2. Some Clients Willingly Handle The Transfer Fees
And yet, some also don’t. Yup, my current clients leave PayPal’s fund transfer charges to me. Usually, it’s about 4.6% to 6% of the original amount sent. And that‘s deducted from my hard-earned income! To be honest, PayPal’s international transfer fees are a pain in the neck. I’m just glad that some of my clients are willing to pay for those charges. In other words, I’d still get the full amount indicated in our payroll. Meanwhile, I’ve heard that TransferWise has lower transfer fees, but if my boss would not let me suffer any payment loss, then I think I’m still going to be okay with PayPal.
3. I Can Withdraw My PayPal Funds Via GCash In Real-Time
If you reside in the Philippines, you must have heard of the fastest-growing mobile wallet. That’s GCash. And, I’m one of those that felt immediate relief when I discovered its “PayPal-to-GCash” feature, which would allow me to immediately withdraw my PayPal funds to my GCash wallet in just a snap! To my delight, I won’t suffer from any loss of funds along the process. As long as I’d withdraw at least Php500 or 10 USD, I can—right at that moment.
Moreover, GCash also offers free, real-time fund transfers to Philippine banks. So, by sticking to PayPal, and linking it to my GCash, I can immediately use my money. I don’t have to wait for 3 to 5 working days before I can handle my cash.
4. Withdrawals From TransferWise May Take Time
This fourth reason is closely related to the previous one. Yes, TransferWise may be wise to charge me no fees as a recipient of some US or Australian dollars through the virtual bank accounts I’d set up in this platform, but… Withdrawing from these accounts to my Philippine bank may take some time. I had to wait for days—working days to be specific—and that’s just not going to work for me, at least for now when I have to use the money immediately.
With PayPal, international transfer is swift. In one click, my PayPal balance would reflect my boss’ payments. I may sometimes suffer from fees, but I can immediately withdraw my money via GCash.
So, TransferWise or PayPal?
I think I’ve made myself clear. But as I’ve mentioned, I do have a TransferWise account. For someone who loves to explore new things, especially anything digital and everything financial, I had to try. Anyway, I think I’m going to use it to receive affiliate commissions soon. I’m still exploring, though. Who knows I’d be wiser to finally transfer to TransferWise one day?