Wise vs PayPal in Malaysia - Which is better?

PayPal¹ and Wise are both digital financial service providers which have handy accounts to hold a balance, send payments and shop online, in Malaysia and globally.

PayPal started out as one of the innovators in online shopping and digital payments, and has a huge global customer base with widespread acceptance, serving both consumers and merchants. Wise is a bit newer, but still an established and regulated service, with more of a focus on helping people hold and manage multiple currencies easily, for spending online and in person and for sending payments to individuals and businesses.

If you’re not sure which is best for you, this Wise vs PayPal review covers all you need to decide.

Table of contents
What is PayPal? What is Wise (formerly TransferWise)? Wise vs PayPal - main comparison International transfers and exchange rates Managing multiple currencies Business accounts Summary

What is PayPal?

Before we move into our full PayPal vs Wise review, let’s look at PayPal in more detail.

PayPal is primarily a digital payments platform - and one of the services that revolutionised shopping online. With PayPal as a consumer you can shop online, send payments to others and receive money from around the world. And as a business owner you can use PayPal’s range of innovative options to make sure it’s easy for customers to pay for goods and services, in multiple currencies, securely.

PayPal is safe to use in Malaysia, and regulated by Bank Negara Malaysia. It also helps to know that PayPal’s services vary quite widely depending on the country you’re in. This guide focuses on Malaysia, but bear in mind that if you’re in any of the other 200 or so countries and territories where PayPal is supported, the services and fees you can access may differ.

New to PayPal? Learn how to use PayPal in Malaysia here.

What is Wise (formerly TransferWise)?

Wise launched as TransferWise in the UK in 2011, and has since grown to offer services to a broad range of countries around the world. With Wise you can open a digital account to send and receive international payments to 160 countries, hold and exchange 40+ currencies, get paid by others in 9+ currencies, and spend with a international prepaid debit card in 150+ countries.

Wise offers services in broad selection of countries - and like PayPal, the exact features and fees you’ll get when using Wise do vary a bit depending on where in the world you are. Similarly to PayPal, Wise is regulated by Malaysian authorities.

Learn more about the Wise account

Wise vs PayPal - main comparison

This comparison will focus on the products and services offered by both PayPal and Wise. But while both providers do have a selection of similar services, they also have their own unique features.

PayPal for example doesn’t have a debit card in Malaysia - but it does offer a selection of payment gateways and tools for business owners. Wise doesn’t have business accounts in Malaysia - but it does have a broader span in terms of supported currencies, as well as a prepaid debit card for easy payments.

Let’s start with a full comparison of PayPal vs Wise fees, features and more.

	PayPal²	Wise⁶
Eligibility	Available in almost all countries around the world	Available in most countries around the world
Available currencies	25 currencies available for holding, exchange and payments³	Hold and exchange 40+ currencies; get local bank details for 9+ (including MYR, SGD, USD, EUR, etc)
Account opening fee	No fee	No fee
Monthly fee	No fee	No fee
Debit card	Not available	Available - 13.7 MYR one time fee
ATM fees	Not applicable	Up to 2 withdrawals, to the value of 1,000 MYR per month free⁷ Then 5 MYR + 1.75%
Exchange rate	3% - 4% currency conversion fee added to the mid-market rate, based on transaction type	Mid-market rate
International transfer fee	Funded by bank account or PayPal balance - 4.99 USD (or equivalent) Funded by card - 4.99 USD (or equivalent) + 3.4% + fixed fee Currency conversion fees also apply	From 0.43%
Buyer protections for ecommerce transactions	Available⁴	Not available
Business account available	Available⁵	Not available
Payment gateways for merchants	Available	Not available

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

PayPal vs Wise - international transfers and exchange rates

When you’re sending a payment overseas you’ll need to check and compare the Wise vs PayPal exchange rate and payment fees to understand which option is best for you. However, it helps to understand that the way both Wise and PayPal work for international transfers can vary a bit.

If you send a payment overseas with PayPal your money will be converted using the PayPal exchange rate, with a currency conversion fee applied. You’ll also pay a transfer fee, depending on how you choose to fund the payment. Your money is deposited - often instantly - into the recipient’s PayPal account. If the recipient wants to get their money out of PayPal they’ll need to make a withdrawal from PayPal to their bank account. This may take a day or two, or include an extra fee for an instant withdrawal - it depends on the country their account is based in.

With Wise, international transfers are deposited into the recipient’s bank account directly for convenience. You’ll pay for your transfer using your preferred payment method, with a fee that varies by currency, from 0.43%⁶. Your MYR will be converted to the currency needed using the mid-market rate and could be deposited instantly, or at least within 24 hours⁸, in your recipient’s bank account.

Here’s a run through of the Wise vs PayPal fees for international transfers:

	PayPal	Wise
Exchange rate	3% - 4% currency conversion fee added to the mid-market rate, based on transaction type	Mid-market rate
International transfer fee	Funded by bank account or PayPal balance - 4.99 USD (or equivalent) Funded by card - 4.99 USD (or equivalent) + 3.4% + fixed fee Currency conversion fees also apply	From 0.43%
Withdraw to bank account	Varied fee depending on the account country If withdrawing to a bank account in Malaysia, there’s a 3 MYR fee for withdrawals under 400 MYR in value Withdrawals in Malaysia may also be available to a card, for a fixed fee of 3 MYR	Not applicable - payments are deposited into bank accounts directly

Learn more about PayPal fees in Malaysia here.

PayPal vs Wise - managing multiple currencies

You can hold a balance in PayPal in 25 currencies, and use your funds to spend, send payments or to make a PayPal transfer back to your bank. With Wise you get a multi-currency account you can use to hold, send and exchange 40+ currencies, ways to get paid in 10 currencies, and a prepaid debit card to spend in 150+ countries. Here’s a summary:

	PayPal	Wise
Available currencies for holding	25 currencies	40+ currencies
Available currencies for sending payments	25 currencies	40+ currencies
Send payments to	Anywhere PayPal is supported	160 countries
Local bank details	Not applicable	Available for 9+ currencies (including MYR, SGD, USD, EUR, etc)
Spend with your debit card	Not applicable	150+ countries

PayPal vs Wise - business accounts

PayPal business accounts offer ways to pay and get paid, manage cash flow, reduce fraud and streamline operations.

Services are divided into options for small and medium businesses, and enterprise level customers, so you can open an account and have it grow with your company as you expand. Small business owners can add a PayPal checkout to a website, get paid through a shareable link, create invoices or get paid on the go with mobile payments. Fees apply for some services.

Wise currently does not offer business accounts in Malaysia, although in other countries, Wise has business accounts and cards which come with multi-currency features and time saving tools.

Summary: should you choose PayPal or Wise in Malaysia?

Whether PayPal or Wise is best for you will depend on the type of transactions you want to make and whether you’re looking for a personal or business account.

If you need an account for your ecommerce site or business, check out PayPal Malaysia to see if it meets your specific needs. For personal customers it’s a good idea to look at both to see which may work best depending on the type of transactions you’ll make.

Wise is a good bet if you want to hold a broad range of currencies, send and spend internationally, with low fees and the mid-market exchange rate. PayPal on the other hand has some easy ways to make instant payments locally with low or no fees, which can be handy for splitting bills or paying back a friend.

For many people having both a PayPal and a Wise account - and using them according to the transaction type - could be the best of both worlds.

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Sources:

1. PayPal Malaysia
2. PayPal fees
3. PayPal supported currencies
4. PayPal buyer protection
5. PayPal Business
6. Please see Terms of Use for your region or visit Wise Fees & Pricing: Only Pay for What You Use for the most up-to-date pricing and fee information.
7. Wise will not charge you for these withdrawals, but some additional charges may occur from independent ATM networks
8. Transaction speed claimed depends on individual circumstances and may not be available for all transactions

Sources checked on 06/10/2023