By zoostoki 
Key Takeaways
- PayPal and Wise (formerly TransferWise) do not support direct transfers but allow money transfers through a linked bank account or PayPal debit card.
- Using a linked bank account for transfers requires withdrawing from PayPal and then depositing to Wise, which can take several business days.
- PayPal charges fees for currency conversions and transactions, while Wise offers transparent, lower-cost fees with real exchange rates.
- PayPal-linked debit cards can be used to fund Wise for faster transfers, but additional fees may apply.
- Both platforms support multiple currencies and international transfers, but processing times and costs vary based on methods used.
- Verifying accounts on both PayPal and Wise is crucial for seamless transactions and avoiding delays.
Managing money online has never been easier, but figuring out how to move funds between platforms like PayPal and TransferWise (now Wise) can feel a bit tricky. With both services offering unique features, it’s no surprise that many people want to know if they can transfer money directly between the two.
I’ve had the same question myself and quickly realized there’s a lot to consider, from compatibility to fees and processing times. If you’re looking for a straightforward answer and tips on how to handle this type of transfer, you’re in the right place. Let’s break it down.
Understanding PayPal And Wise (Formerly TransferWise)
PayPal and Wise are popular platforms for managing and transferring money globally. Each service offers unique features tailored to different financial needs.
Overview Of PayPal
PayPal is a widely used digital payment platform that supports online money transfers, purchases, and personal transactions. It’s available in over 200 countries and handles multiple currencies. Users link their accounts to credit cards, bank accounts, or PayPal balances for seamless transactions.
Its widespread adoption makes it a default payment method in e-commerce marketplaces and digital services. Standard fees apply to conversions and business payments, while personal transfers within the same currency are often free.
Overview Of Wise And Its Features
Wise, previously TransferWise, specializes in international money transfers at low costs using real exchange rates. It’s available in more than 170 countries, offering transparent fees and no hidden markups.
Wise accounts let users hold and manage money in over 50 currencies. The multi-currency facility includes tools such as domestic bank details in the US, UK, and EU regions. Its borderless card enhances usability for purchases and travel spending.
Is It Possible To Transfer From PayPal To Wise?
Direct transfers between PayPal and Wise aren’t supported, as the two platforms don’t have direct integration. However, alternative methods make such transfers feasible.
Direct Transfer Options
PayPal doesn’t include an option to directly send money to a Wise account. The platforms operate independently, with no built-in compatibility to link them for seamless transactions. PayPal allows money transfers to linked bank accounts, credit cards, or email addresses linked to another PayPal account. Wise primarily connects to bank accounts for deposits and withdrawals.
Workarounds And Solutions
It’s possible to transfer money indirectly by using a linked bank account. Withdraw funds from PayPal to a bank account connected to both services, then deposit the money into Wise. Ensure the linked account is verified on both platforms to avoid delays or extra fees.
Another option involves a PayPal-linked debit card. Use the card to add funds to Wise directly, but confirm if your card is eligible. This method may include additional transaction fees from PayPal or Wise. Double-check their fee structures to budget properly.
Step-By-Step Guide To Transfer Money From PayPal To Wise
Transferring funds between PayPal and Wise requires a few actionable steps, as there’s no direct integration between the two platforms. Follow these steps to ensure a smooth transfer process.
Preparing Your PayPal Account
I log in to my PayPal account and ensure it’s fully verified. Verification typically involves confirming my email address, linking a bank account or card, and sometimes providing additional identification documents. I also review my account’s available balance and check for any pending transactions to ensure enough funds are available for withdrawal.
Setting Up Your Wise Account
I open my Wise account and confirm it’s verified. For full verification, I provide identification documents and link a bank account if required. Wise offers me unique local account details for several currencies, so I use these details for receiving the transfer from my bank. I also check Wise’s fees and real-time exchange rates for accurate cost and transfer calculations.
Using A Linked Bank Account For Transfers
I start by withdrawing money from PayPal to my linked bank account. This process takes 1-5 business days, depending on my bank. Once the funds reach my bank, I log in to Wise, navigate to the “Add Money” section, and use my bank account to deposit the amount. If I linked my PayPal debit card to Wise, I could instead use the card to load funds instantly, but I consider associated fees before choosing this option.
By ensuring accounts are verified and sufficient balances are available, I prevent delays or rejected transactions during the process.
Fees And Processing Times To Consider
When transferring money between PayPal and Wise using indirect methods, understanding the fees and processing times is essential. Both platforms charge fees that can vary based on the transaction type and currency conversions.
PayPal Fees
PayPal charges fees for certain transactions, especially those involving currency exchange or withdrawals to bank accounts. For currency conversions, PayPal applies an exchange rate that includes a markup of roughly 3-4%. Standard fees for withdrawing funds to a bank account are typically free in the same currency, but international withdrawals can incur charges depending on the country and currency.
For debit card transactions, PayPal charges approximately 2.9% of the transaction amount plus a small fixed fee, depending on the currency. These costs can add up if using a PayPal card to load funds into Wise.
Wise Fees
Wise provides transparent fees for all transactions, which vary based on the currency, payment method, and transfer amount. For sending money internationally, Wise charges a small percentage of the transferred amount, often between 0.35% and 1%. Fixed fees for certain currencies, like USD or EUR, are also applied but clearly disclosed during the transaction process.
Adding funds using a card, including a PayPal-linked card, is more expensive. Card payments generally carry fees ranging from 0.2% to 2%, depending on the currency and card type (debit or credit).
How Long Does The Transfer Take?
Transfers between PayPal and Wise involve multiple steps, impacting processing times. Withdrawing funds from PayPal to a bank account typically takes 1-5 business days. Once the money is in a bank account, transferring it to Wise takes an additional 1-2 business days in most cases.
If using a PayPal-linked debit card to fund Wise, the transfer is nearly instant, but higher fees may apply. Delays can occur if either account isn’t verified or if there’s an issue with payment methods. Always check estimated timelines on both platforms before initiating a transfer.
Benefits And Drawbacks Of Transferring From PayPal To Wise
Transferring funds between PayPal and Wise combines the strengths of both platforms but comes with noteworthy advantages and limitations. Understanding these factors helps optimize the transfer process.
Advantages Of Using Both Platforms
- Global Reach: PayPal supports over 200 countries, while Wise operates in more than 170. This ensures compatibility when transferring funds internationally.
- Currency Support: PayPal allows currency exchanges during withdrawals, and Wise can hold balances in over 50 currencies. This feature simplifies cross-border transfers.
- Transparent Fees: Wise offers an upfront fee structure with no hidden costs, and PayPal provides predictable fees for withdrawals. Users can estimate expenses before initiating transfers.
- Versatile Transfer Methods: The ability to link a PayPal account with a bank or use a PayPal debit card to fund Wise gives users multiple ways to transfer money.
- Speed Options: PayPal-linked debit cards minimize transfer times to Wise, often allowing instant transactions for urgent needs.
Potential Limitations And Challenges
- No Direct Integration: PayPal and Wise lack direct connectivity, requiring intermediate steps like withdrawing funds to a bank account or using a debit card.
- Fee Variance: PayPal’s 3-4% currency conversion markup increases costs during international transfers compared to Wise’s lower rates.
- Processing Delays: Bank transfers from PayPal to Wise can take several business days, causing delays for time-sensitive transactions.
- Verification Requirements: Unverified accounts or discrepancies in account details may result in declined transactions or additional processing times.
- Service-Specific Restrictions: Some PayPal features, like debit card usage for Wise funding, might not be available in certain regions.
Conclusion
Transferring money between PayPal and Wise may not be straightforward due to the lack of direct integration, but it’s entirely possible with the right steps. By using a linked bank account or a PayPal debit card, you can move your funds efficiently while staying mindful of fees and processing times.
Both platforms offer unique advantages, so understanding their features and limitations ensures a smoother experience. With a bit of preparation and attention to detail, you can make the most of PayPal and Wise for your financial needs.
Frequently Asked Questions
Can you directly transfer money from PayPal to Wise?
No, direct transfers between PayPal and Wise are not supported. You’ll need to withdraw funds from your PayPal account to a linked bank account and then deposit them into your Wise account. Alternatively, you can use a PayPal-linked debit card to fund your Wise account.
What are the fees for transferring money from PayPal to Wise?
PayPal charges fees for withdrawals and currency conversions, with exchange rate markups of about 3-4%. Wise charges transparent fees, typically ranging from 0.35% to 1%, depending on the currency and transfer method.
How long does it take to transfer money from PayPal to Wise?
Transfers can take 1-5 business days when using a bank account. If you use a PayPal-linked debit card with Wise, funds can be loaded almost instantly, though this may come with higher fees.
What’s the best way to transfer funds from PayPal to Wise?
The best method depends on your priorities. For speed, use a PayPal-linked debit card to transfer money to Wise. For cost-effectiveness, withdraw funds to a bank account, then deposit them into Wise.
Are there any key challenges when transferring money between PayPal and Wise?
Yes, challenges include the lack of direct integration, potential fees, verification requirements, and possible delays during processing. Always ensure your accounts are fully verified to avoid hold-ups.
Why choose Wise over PayPal for international transfers?
Wise offers lower, transparent fees and uses real exchange rates, making it more cost-effective for international transfers. It also lets you hold balances in over 50 currencies and provides tools like local bank details.
Can I link my PayPal account directly to Wise?
No, you cannot link a PayPal account directly to Wise. However, you can connect a PayPal debit card to Wise or use a bank account as an intermediary.
What should I do if my transfer is delayed?
Check both your PayPal and Wise accounts for any pending actions or verification requirements. Delays can also occur due to processing times at your bank. Contact customer support for assistance if needed.
Are there currency conversion options when transferring from PayPal to Wise?
Yes, both platforms support currency conversions. PayPal provides conversion services but with a markup of approximately 3-4% on exchange rates. Wise offers real exchange rates with minimal fees for conversion.
Can I avoid fees when transferring money between PayPal and Wise?
While avoiding all fees may not be possible, you can reduce costs by withdrawing in the same currency and using Wise’s budget-friendly transfer options, such as domestic bank deposits. Always review fee estimates before transferring.