PayPal Price Comparison Disclaimer: GBP to AUD

1 minute read

Are you using PayPal in your business to pay or get paid internationally for goods and services? If so, you could save a bundle by opening a business account with Wise. That’s according to independent research agency Consumer Intelligence. The details of the research, including the raw transfer data, is available below.

Research Methodology

The research was carried out on the 16th January by market research agency, Consumer Intelligence, in conjunction with Wise. The data was ascertained via a series of transfers carried out by Consumer Intelligence and partners in various geographies.

There are three types of fees recorded for this price comparison:

  • Fee 1: an upfront international money transfer fee
  • Fee 2: the markup PayPal added to their exchange rate
  • Fee 3: the recipient fee PayPal charged when business receive international payments

Research took place on 5 routes within the same day. Date and timestamps are provided.

The Research

Route 4: Sending 2000 GBP to AUD

As part of the research, Consumer Intelligence made a GBP 2,000 payment from a UK PayPal business account to an Australian PayPal business account.

This business payment incurred sending fees of GBP 91.76 with PayPal, and only GBP 9.96 with Wise.

Wise saved the sender GBP 81.80.

PayPal charged the Australian business who received this payment a recipient fee of AUD 119.42. Transferwise charged no recipient fee.

Wise saved the recipient AUD 119.42

The total amount that arrived at the Australian business via PayPal was AUD 3,443.37. Via Wise the amount was AUD 3,189.43.

Using Wise meant the Australian business got an extra AUD 253.94

Here’s the raw data:

Sending GBP 2000 to AUD: Wise vs PayPal Business

Fees/cost Wise PayPal Business
Amount sending (in GBP) £2000 £2000
Rate quoted by provider (Reuters’ exchange rate = 1.7303) £1 = AU$1.7303 £1 = AU$1.6544
Provider exchange rate markup (in %) 0% 4.39%
Provider exchange rate markup (in GBP) £0.00 £91.76
Upfront transfer fee (in GBP) £9.96 £0
Total sender fees (in GBP) £9.96 £91.76
Amount sent to recipient (in AUD) $3,443.37 $3,308.85
Recipient fees applied (in AUD) $0 $119.42
Recipient fees applied (in %) 0% 3.61%
Total recipient fees (in AUD) $0 $119.42
Final recipient amount (in AUD) $3,443.37 $3,189.43
Total cost of transfer (in GBP + AUD) £9.96 + $0 £91.76 + $119.42

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 11:16 UTC.

Wise is the smart, new way to send money abroad.

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