PayPal price comparison research

Wise
12.02.18
6 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 1: Sending 2000 USD to GBP

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

This business payment incurred sending fees of USD 72.44 with PayPal, and only USD 8.43 with Wise.

Wise saved the sender USD 64.01

PayPal charged the UK business who received this payment a recipient fee of GBP 61.92. Wise charged no recipient fee.

Wise saved the recipient GBP 61.92

The total amount that arrived at the UK business via PayPal was GBP 1,340.80. Via Wise the amount was GBP 1,447.27.

Using Wise meant the UK business got an extra GBP 106.47

Here’s the raw data:

Sending USD 2000 to GBP: Wise vs PayPal business

Fees/costWisePayPal business
Amount sending (USD)$2000$2000
Rate quoted by provider (Reuters’ exchange rate = 0.7267)US$ 1 = £0.7267US$ 1 = £0.7013
Provider exchange rate markup (%)0%3.5%
Provider exchange rate markup (USD)$0$72.44
Upfront transfer fee (USD)$8.43$0
Total sender fees (USD)$8.43$72.44
Amount sent to recipient (GBP)£1,447.27£1,402.72
Recipient fees applied (GBP)£0£61.92
Recipient fees applied (%)0%4.41%
Total recipient fees (GBP)£0£61.92
Final funds available to recipient (GBP)£1447.27£1340.80
Total cost of transfer (USD + GBP)$8.43 + £0$72.44 + £61.92

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 07:07 UTC.

Route 2: Sending 2000 USD to EUR

As part of the research, Consumer Intelligence made a USD 2,000 payment from a US PayPal business account to a French PayPal business account.

This business payment incurred sending fees of USD 75.46 with PayPal, and only USD 9.90 with Wise.

Wise saved the sender USD 65.56.

PayPal charged the French business who received this payment a recipient fee of EUR 69.76. Transferwise charged no recipient fee.

Wise saved the recipient EUR 69.76

The total amount that arrived at the French business via PayPal was EUR 1509.95. Via Wise the amount was EUR 1631.09.

Using Wise meant the French business got an extra EUR 121.14

Here’s the raw data:

Sending USD 2000 to EUR: Wise vs PayPal Business

Fees/costWisePayPal business
Amount sending (in USD)$2000$2000
Rate quoted by provider (Reuters’ exchange rate = 0.8196)US$ 1 = €0.8196US$ 1 = €0.7898
Provider exchange rate markup (in %)0%3.64%
Provider exchange rate markup (in USD)$0$75.46
Upfront transfer fee (in USD)$9.90$0
Total sender fees (in USD)$9.90$75.46
Amount sent to recipient (in EUR)€1,631.09€1,579.71
Recipient fees applied (in EUR)€0€69.76
Recipient fees applied (in %)0%4.42%
Total recipient fees (in EUR)€0€69.76
Final recipient amount (in EUR)€1631.09€1509.95
Total cost of transfer (in USD + EUR)$9.90 + €0$75.46 + €69.76

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 07:15 UTC.

Route 3: Sending 2000 GBP to USD

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

This business payment incurred sending fees of GBP 65.80 with PayPal, and only GBP 8.76 with Wise.

Wise saved the sender GBP 57.04.

PayPal charged the US business who received this payment a recipient fee of USD 117.47 Transferwise charged no recipient fee.

Wise saved the recipient USD 117.47

The total amount that arrived at the US business via PayPal was USD 2,738.35. Via Wise the amount was USD 2,545.50.

Using Wise meant the US business got an extra USD 192.85

Here’s the raw data:

Sending GBP 2000 to USD: Wise vs PayPal Business 16.01.18 11:12

Fees/costWisePayPal Business
Amount sending (in GBP)£2000£2000
Rate quoted by provider (Reuters’ exchange rate = 1.3752)£1 = US$1.3752£1 = US$1.3314
Provider exchange rate markup (in %)0%3.18%
Provider exchange rate markup (in GBP)£0£65.80
Upfront transfer fee (in GBP)£8.76£0
Total sender fees (in GBP)£8.76£65.80
Amount sent to recipient (in USD)$2,738.35$2,662.97
Recipient fees applied (in USD)$0$117.47
Recipient fees applied (in %)0%4.41%
Total recipient fees (in USD)$0$117.47
Final recipient amount (in USD)$2,738.35$2,545.50
Total cost of transfer (in GBP + USD)£8.76 + $0£65.80 + $117.47

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 11:12 UTC.

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 3,189.43 . Via Wise the amount was AUD 3,443.37.

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/costWisePayPal 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.

Route 5: Sending 2000 GBP to EUR

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

This business payment incurred sending fees of GBP 82.49 with PayPal, and only GBP 7.77 with Wise.

Wise saved the sender GBP 74.72.

PayPal charged the Australian business who received this payment a recipient fee of EUR 73.38. Transferwise charged no recipient fee.

Wise saved the recipient EUR 73.38

The total amount that arrived at the French business via PayPal was EUR 2243.05. Via Wise the amount was EUR 2088.85.

Using Wise meant the French business got an extra EUR 154.20

Here’s the raw data:

Sending GBP 2000 to EUR: Wise vs PayPal Business

Fees/costWisePayPal Business
Amount sending (in GBP)£2000£2000
Rate quoted by provider (Reuters’ exchange rate = 1.1259)£1 = €1.1259£1 = €1.0813
Provider exchange rate markup (in %)0%3.96%
Provider exchange rate markup (in GBP)£0.00£82.49
Upfront transfer fee (in GBP)£7.77£0
Total sender fees (in GBP)£7.77£82.49
Amount sent to recipient (in EUR)€2,243.05€2,162.63
Recipient fees applied (in EUR)€0€73.38
Recipient fees applied (in %)0%3.39%
Total recipient fees (in EUR)€0€73.38
Final recipient amount (in EUR)€2,243.05€2,088.85
Total cost of transfer (in GBP + EUR)£7.77 + €0£82.49 + €73.38

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 11:19 UTC.

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| This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. |

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