How to Withdraw Money from PayPal in New Zealand [2024 Guide]

If you hold a balance in your PayPal¹ account, you’ll need to learn how to withdraw money from PayPal NZ to your bank, so you can use your money freely.

This guide has you covered. We’ll also look at how making a transfer from PayPal to Wise can help you save money when managing cross currency conversions and payments².

How to Withdraw Money from PayPal

So - the first question is likely to be: can you withdraw money from PayPal to a bank account so you can make payments with it or spend your balance using your debit card? The good news is that you can get your money out of PayPal to a local or US bank account pretty easily - the bad news is that there may be fees to pay, depending on the option you select. We’ll walk through a guide to how to withdraw money from PayPal without fees a bit later.

It’s worth noting upfront that to withdraw money from PayPal in New Zealand you first need to link an eligible NZD or USD bank account to your PayPal. You can only withdraw to your own account - you cannot send directly from PayPal to someone else's bank account. Here's how to link a bank account to your PayPal account on the PayPal desktop site³:

1. Log in and click Wallet
2. Click _ Link a bank account_
3. Follow the instructions to add your bank account - you’ll need to follow a verification step

You can also link a bank on the app:

1. Open the app and tap Wallet
2. Look for the + icon across from "Banks and cards", and tap it
3. Tap Banks then follow the instructions to add your bank account - you’ll need to follow a verification step

Not got a convenient NZD or USD account? Consider making a PayPal to Wise transfer instead. Open a Wise account to get local details for 9 currencies including NZD and USD, which you can use to send money from PayPal to Wise. Wise isn’t a bank, but the details you get with an account can be used to receive funds conveniently - and once you have a balance in Wise you can also convert, send, or spend with mid-market exchange rates and low fees. We’ll cover that later.

Once you’ve linked and verified your bank account, you’re ready to withdraw your money. Let’s look at that next.

Step-by-Step Guide to Withdrawing money from PayPal

Making a withdrawal from PayPal to your bank should be fairly painless. You can set up the withdrawal on the PayPal app or by logging into your account online.

If you want to withdraw money from PayPal NZ on the app, you’ll need to take the following steps⁴:

• Open the app and go to Wallet
• Click Transfer Money then Transfer to your bank
• Follow the instructions to enter the amount and currency to withdraw

And if you’re wondering how can you withdraw money from PayPal on their desktop site, you’ll be glad to know the process is pretty simple too:

• Log in and tap your balance
• Click Transfer Money then Transfer to your bank
• Follow the instructions to enter the amount and currency to withdraw

How long does it take to withdraw money from PayPal?

A standard bank withdrawal from PayPal takes 3 to 5 business days to arrive in your account.

If you’re wondering how can you withdraw money from PayPal quicker, it’s worth looking out for an instant withdrawal button. This option isn’t available to all users, so it’ll depend on how your PayPal account is set up. But if you do see the instant withdrawal option, this may mean you can get your payment quicker - within 30 minutes or so - for an extra fee.

How to Send Money from PayPal to Wise

We mentioned earlier that you may also want to use PayPal to send money to Wise.

Because Wise accounts offer powerful international features and currency conversion which uses the mid-market rate and low fees from 0.39%, adding money to your Wise account can be a smart way to send or spend later in foreign currencies. You can use the Wise account details that you’ll find in the app to connect to PayPal and withdraw - in the same way described above. Once you have a balance, you’re free to use it any way you like!

One important point on how to transfer money from PayPal to a Wise account: you can only withdraw from PayPal to your own account. If you need to send money to someone else's account, you'll need to withdraw to your own first and then transfer onwards from there. If you use a standard withdrawal from PayPal there’s usually no PayPal to Wise transfer fee if you withdraw NZD.

Wise account details let you receive local payments in NZD for free - but do bear in mind that there’s a PayPal fee to withdraw in USD, and there’s also a Wise fee if your withdrawal is processed as a USD international wire transfer. If your payment arrives as an ACH, Wise does not have a charge, but the PayPal costs still apply.

Get Started with Wise

Paypal Withdrawal Fees

Here’s a quick overview of the most common fees you need to know about if you’re making a withdrawal from PayPal to a bank account (or a Wise account). These fees apply for personal PayPal customers⁵, and PayPal merchants⁶:

Consider PayPal Currency Conversions Costs

You’ll notice above that PayPal has a currency conversion fee for all transactions which require currency exchange - including withdrawals. This fee can be 3% or 4% depending on the exact transaction type. This means that if you hold a balance in one currency and convert it to another to withdraw, you’ll lose a percentage of your money along the way.

If you want to send a payment to someone else in another currency, that fee will apply again. If it’s possible to avoid this, it’s worth doing. You can withdraw your money in NZD to Wise - and then convert with the mid-market rate and low fees, to send on to your recipient instead.

Summary

Use this guide to making a withdrawal from PayPal NZ to a bank or other account to get up to date with how to make the most of PayPal - and don’t forget to check out Wise as a smart way to receive 9 currencies - and hold, send, spend and exchange 40+ currencies with low fees and the mid-market rate.