PayPal vs TransferWise: What's the best option for you?
July 2, 2019
by Neel Adwani
In today’s world of technology, cashless transactions have become a trend that is not going to end anytime soon. So now we have a choice between Transferwise and PayPal as they’re both used for cashless transactions. After reading this article, you’ll be able to choose one according to your requirements and needs.
Why choose PayPal?
I’ve been using PayPal for the last 3 years and it has been a great experience so far. So, in a one-liner, if you’re looking for better security features and the transaction fees is not a problem for you, PayPal is the way to go.
Whenever I have to buy a domain for my clients or myself, I have to make secure international transactions, so I use PayPal for the case due to its security features. I’ve been able to save my Credit Cards and Debit Cards into my PayPal account. Most of the time, when I have to do some online shopping for my robotics lab, I use PayPal. The payments are instant in these cases, so I haven’t faced any delays in the transaction process. Once I had to make an urgent payment in a sale, but I had not registered my card with PayPal, so I tried out the scan function, that automatically scans the Credit/Debit card. It worked out fine for me and I was able to wind it up in time.
Since I make money through freelancing, all my payments arrive through PayPal. My clients and I can easily make international transfers. The downside is that I have to pay 4.4% + $0.30 as a transaction charge, to withdraw that money to my bank account. Also, it takes about 3-5 days to arrive.
Why choose TransferWise?
TransferWise is yet another payment gateway, which is efficient in terms of time.
Whenever I open the app, the interface seems so easy that even a child can understand. I usually prefer using it when I’m on the move as it has cheap conversion rates. I even had a card issued for myself, which made it easier to withdraw money from ATMs or make online payments. The downside is that I cannot operate its service in third world countries like India. Although, whenever I have to make an international payment, it has much lower service charge than PayPal. Once I added a withdrawal request in the app, and the money arrived in my bank account in about 2 days, which was quite faster than PayPal.
Both payment gateways are good in their own ways. PayPal is better in terms of security, but at the same time has a higher transaction fee. It is easier to operate the PayPal app due to a wide range of features such as Credit/Debit card scanning using the phone’s camera. It is also said to have good customer support. TransferWise has lower service charges as compared to PayPal and they have their own customized cards, which can be sent on request. TransferWise is available in a limited number of countries, while PayPal is recognized worldwide. For travelers, the best option is to use TransferWise if it is available in their destination because the money can be transferred quickly. In case it is not available, PayPal can be considered.