Paypal vs Transferwise: My Experience Using Both Online Services
July 9, 2019
by Arika Agnew
Being a travel blogger and freelance writer requires me to frequently use online banking services such as Paypal or Transferwise. Paypal and Transferwise make it easy and convenient for me to send and receive money online. Each of these online services has its own advantages and disadvantages, continue reading my experience to help decide which service is the best for you.
Paypal is one of the most widely used online payment services. Paypal is the service that I use the most when receiving payments for my freelance writing services online. Paypal makes it easy to transfer payments from clients to my bank account, or use the funds directly through the Paypal Mastercard. While using Paypal I discovered a few pros and cons, they are listed below.
Fee IOS app- I love using the free Paypal app. This makes it easy to see the funds in my account and faster to send money to others. Instead of logging onto my computer, I can open the app and access my information there.
Offers free Debit Mastercard- Paypal now offers a Debit Mastercard. This makes it extremely easy to spend my funds in stores wherever Mastercard is accepted. I can also withdraw my funds at ATMs if need be.
Automatically converts currencies- Sometimes I work internationally, so the fact that Paypal automatically converts currencies is convenient.
Make online purchases with a push of a button- I use Paypal for my online transactions as well. Paypal makes it extremely easy to purchase items online with just a push of the Paypal button.
Certain banks charge transaction fees when transferring money from Paypal- Luckily the bank I use for Paypal does not. I have multiple banks and some would have ended up charging me fees.
Inconsistent customer support when solving issues- Anytime I have had to contact customer support it is a bit of a struggle. They are inconsistent with their replies and it takes a while to get a response.
Cannot transfer funds to other online banking systems- This was disappointing when I found out. It would be extremely convenient to be able to send money to other online banking apps.
Transferwise offers cheaper international bank transfers with great exchange rates. Transferwise is also known for its complete transparency. When it comes to their fees, I am never surprised by what I will pay. Transferwise is the perfect service for anyone looking to transfer small amounts internationally due to its simplicity, speed, and transparency.
Free IOS app- The Transferwise app is super convenient and easy to use. I can easily view my account and funds information.
Free Debit Mastercard coming to the US soon- This was very exciting to learn about. I love my Paypal Debit Mastercard so a Transferwise Debit Mastercard would make it easier to spend my funds. I signed up for the waitlist immediately.
Transparent with fees and pricing- I love Transferwises transparency. This makes them more trustworthy to me when I use it.
Low currency exchange fees when sending money internationally- This is the number one pro for me when using Transferwise. Their currency exchange rates are lower than most banks and even Paypal.
Offers widget that breaks down fees- I love using the widget to break down the costs of transfer. This makes the process very transparent and easy.
Fees to transfer money in the same currency- It is disappointing that Transferwise has fees for transferring money in the same currency. This should be free.
You can’t send money to other users- This is very inconvenient. It would be great if I could send money directly to the app instead of their bank account.
Can only send money to bank accounts, no cash pick up- Transferwise also does not offer checks. You must transfer to a bank account.
No phone support available- This is disappointing. Whenever I have to contact support it is a bit of a struggle because they do not offer phone support.
Transferwise and Paypal are both excellent online services that are extremely useful when sending and receiving money online. Depending on what you are looking for, Paypal or Transferwise should have you covered. If you’re looking for a service that can be used to receive payment for online services or to sell products, Paypal is a great service. If you are looking for a service that will allow you to send money internationally for cheaper and faster than a regular bank, Transferwise is the best option. Personally, I use both services because each costs nothing to create an account and they both offer different online banking services