The Benefits of Using TransferWise vs PayPal

June 9, 2019

by Rosalyne Field

Money, money, money: It’s what makes the world go around, or in our case, it’s what helps us go around the world! As a result, care and organisation need to be taken to ensure you can access your money no matter where in the world you are, hopefully with the least amount of hassle and the lowest amount of fees possible! PayPal has long been a popular and trusted tool to use but there is now a new tool fast becoming recognised internationally as one of the best means of sending and receiving money around the world, so let’s take a look at them both.

PayPal

I love PayPal because it is so versatile. Whether it’s sending and receiving money, creating invoices (which is a very important tool to have as a freelance writer) or making purchases online, PayPal has your back. I can receive money via PayPal and deposit it into my Australian bank account and then use my bank card here in Africa. I have no fees from PayPal for receiving money, and it goes in usually on the same day. However, using my Australian bank card here in Africa incurs quite a few fees, from overseas bank charges to foreign currency fees and currency exchange fees… they soon add up!

Why not set up my PayPal account to my African bank account, you ask? Well, here’s where it gets complicated. There are only a select few African banks which can be set up to receive PayPal payments, they all charge a fee for using PayPal and PayPal also charges a fee for those banks. Additionally, it can take up to a week for funds to be deposited into the African bank.

PayPal is an excellent tool for accessing money overseas, but fees can add up, especially in certain areas of the globe, and it can take time for funds to reach you, also depending on where you are in the world.

TransferWise

Quickly gaining popularity is TransferWise, an amazing tool for your international transfer. You can now transfer money internationally at the guaranteed daily currency exchange rate without any of those pesky little hidden costs that banks tend to add on, all for one flat fee. Sound too good to be true? Well, it’s now possible with TransferWise.

I use TransferWise all the time now to transfer money from my Australian bank account to my South African bank account, and I am saving a lot of money now doing it this way. Transferring money via banks is much more expensive. Unfortunately, living in Africa once again makes it slightly more difficult than if I were in Europe, Britain or America for example. TransferWise charges a higher fee for African countries, and it can take up to eleven days for my transfer to go through. It is much cheaper and quicker to transfer between western countries.

Certain countries where TransferWise has a presence also offer the option of getting a TransferWise bank card, making it even easier to access your international funds. Unfortunately, Africa as yet doesn’t offer this option, but I look forward to the day it does. If you check your options before you travel, you can see which benefits you will get where you are going so you can get the most out of your money and your travel.

Both PayPal and TransferWise have amazing benefits depending on your situation. I personally use both depending on my circumstances and what I need to get done and rely on them for my every financial travelling need. Remember, never let your financial situation stop you from stepping out the door for your next adventure. You’ll never regret taking that step, and you never know where you will end up or what memories you will create. Check out your options based on where you are going, and go for it! I’m heading to Namibia next… I might see you there!

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