How to Send Money from PayPal to TransferWise: A Step-by-Step Guide to Smooth Transfers

Sending money across platforms like PayPal and Wise (formerly TransferWise) can feel a bit tricky if you’re not familiar with the process. Both services are popular for their convenience and cost-effectiveness, but they don’t offer a direct way to transfer funds between them. That’s where a few simple workarounds come in handy.

I’ve navigated this process myself, and it’s easier than you might think once you know the steps. Whether you’re paying someone abroad or moving your own funds, I’ll guide you through the most efficient way to send money from PayPal to Wise without unnecessary fees or delays.

Understanding Paypal And TransferWise

PayPal and TransferWise, now known as Wise, are globally recognized platforms for managing and transferring money. They serve different purposes but can be connected through specific steps to move funds efficiently.

Overview Of PayPal

PayPal operates as an online payment system facilitating money transfers and ecommerce transactions. Users link bank accounts or credit cards to their accounts, enabling payments, fund transfers, and withdrawals. PayPal supports 200+ countries and regions with transactions in over 25 currencies. Key features include buyer protection, recurring payments, and business account services.

Overview Of TransferWise

TransferWise specializes in international money transfers with competitive exchange rates. It eliminates traditional bank fees by using real exchange rates and local account systems. Wise operates in 170+ countries and supports 50+ currencies, making global transfers faster and more cost-effective. Core features include borderless accounts, multi-currency balances, and debit card services for seamless international spending.

Preparing To Transfer Money

Ensuring both accounts are properly set up prevents delays when sending money from PayPal to Wise. I’ll guide you through linking your PayPal account and configuring Wise to receive funds.

Linking Your PayPal Account

I accessed my PayPal account via the website or mobile app. In the settings section, I navigated to the “Banks and Cards” option and selected “Link a Bank Account.” To enable the transfer workaround, I linked a U.S. bank account compatible with both platforms. PayPal required the account and routing numbers during setup. Verification involved a micro-deposit process, completed in 1–3 business days, where small amounts were deposited into the bank account.

Setting Up TransferWise To Receive Funds

I signed into my Wise account and selected “Account Details” under the currency I wanted to receive money in. Wise provided local bank details such as account number, routing code, or IBAN, depending on the selected currency. I saved these details to use them later when transferring funds from PayPal. For non-U.S. users, Wise offers local receiving accounts in 10+ currencies, simplifying international transfers.

Step-By-Step Guide To Sending Money

To transfer money from PayPal to Wise, you’ll use an intermediary bank account to bridge the platforms. Follow these steps to ensure accurate and efficient transfers.

Withdrawing Funds From PayPal

Log in to your PayPal account and go to the “Wallet” section. Select the linked bank account you set up earlier. Click “Transfer Money” and choose “Withdraw from PayPal to your Bank Account.” Enter the amount you want to withdraw and confirm the transfer. PayPal typically processes withdrawals within 1-3 business days, depending on your bank.

Depositing Funds Into TransferWise

Access your Wise account and navigate to the “Balances” tab. Open the currency balance where you want the funds deposited or create a new balance if needed. Copy your local bank account details provided by Wise, including account number and routing information for the currency. Open your bank’s platform and initiate a transfer from your personal account to Wise using the copied details. Standard bank processing applies here, usually within 1-2 business days.

Ensuring Accurate Transfer Details

Double-check all account and routing numbers before initiating any transfer. Use the exact details provided in both platforms to avoid errors or delays. Confirm that payment amounts match, considering currency exchange rates and possible fees between the services. If any discrepancies appear during the process, resolve them immediately to prevent failed transactions.

Potential Fees And Currency Conversion

Transferring money from PayPal to Wise involves potential costs. Understanding these fees and exchange rate differences helps ensure an efficient transfer.

PayPal Fees To Consider

PayPal applies various fees based on the transaction type and location. For personal transfers within the same country, no fee exists if using your PayPal balance or linked bank account. However, sending money internationally incurs a fee between 0.4%-3.9%, depending on the recipient’s country. Additional fixed fees apply for certain currencies, like $0.30 for USD transactions. Payments funded by a credit or debit card involve an extra 2.9% fee.

TransferWise Exchange Rates

Wise emphasizes real-time mid-market exchange rates, leading to more transparency. It directly displays the rates during the transfer process, ensuring users know how much currency they’ll receive. Unlike banks charging hidden margins, Wise applies a small fee (e.g., $0.41 for $100 transfers from USD to GBP) outside the rate, which varies based on the amount and destination currency. Staying aware of these rates avoids surprises when converting currencies.

Tips For A Smooth Transaction

Ensuring a seamless transfer from PayPal to Wise involves careful attention to details and timing. Following these tips helps avoid complications and ensures efficiency.

Avoiding Common Errors

Double-check all account details, including bank account and routing numbers, before initiating transfers. Errors in these details often lead to failed transactions or delays. When providing Wise with local bank information, confirm that the currency settings match the transfer.

Verify account balances on PayPal and your linked bank to ensure sufficient funds are available. Insufficient balances may lead to declined transactions. Also, ensure both PayPal and Wise accounts are fully verified to comply with platform policies and prevent disruptions.

Avoid processing multiple large transfers on the same day if they exceed account or transaction limits on either platform. Check transaction limits in the account settings of both PayPal and Wise to plan appropriately.

Timing Your Transfers

Initiate transfers during regular banking hours, typically Monday through Friday, to avoid delays caused by weekends or holidays. Transactions between financial institutions often process faster on business days.

Check processing times for each step of the transfer. PayPal withdrawals to a bank account usually take 1-3 business days, while deposits into Wise balances take 1-2 business days. Allow extra time when transferring larger amounts, as they may require additional verification.

Monitor currency exchange rate fluctuations if converting currencies. Wise provides real-time mid-market rates, which can differ throughout the day, making timing crucial for cost-effective transfers.

Conclusion

Transferring money from PayPal to Wise may seem tricky at first, but with the right preparation and steps, it’s entirely manageable. By understanding how each platform works and using a linked bank account as an intermediary, you can minimize fees and delays while ensuring a smooth process. Accuracy and attention to detail are key when handling account information and transfer details. With these tips in mind, you’ll be able to navigate the process confidently and make the most of both platforms’ features.

Frequently Asked Questions

1. Can I transfer money directly from PayPal to Wise?

No, there’s no direct way to transfer money from PayPal to Wise. However, you can use an intermediary bank account to move funds between the two platforms efficiently.

2. What’s the easiest method to transfer money between PayPal and Wise?

The easiest way is to withdraw funds from PayPal to a linked bank account, then transfer the money from the same bank account to Wise. This two-step process is straightforward and ensures accuracy.

3. How long does it take to transfer money from PayPal to Wise?

Transferring funds from PayPal to a bank account usually takes 1-3 business days. Depositing these funds into Wise typically takes an additional 1-2 business days.

4. Are there fees involved in transferring money from PayPal to Wise?

Yes, PayPal may charge fees for international transfers, ranging from 0.4% to 3.9%, plus fixed fees for specific currencies. Wise applies a small fee outside its mid-market exchange rate for currency conversions.

5. Does Wise offer better exchange rates compared to PayPal?

Yes, Wise uses real-time mid-market exchange rates, making it more transparent and cost-effective compared to PayPal, which may include hidden costs within its currency exchange rates.

6. Can I use Wise if I don’t live in the U.S.?

Absolutely! Wise operates in over 170 countries and supports local bank accounts for a wide range of currencies, making it accessible for international users.

7. How can I avoid errors during the transfer process?

To avoid errors, double-check all account details, ensure sufficient balances on both platforms, and confirm input accuracy for account and routing numbers before initiating transfers.

8. Are there any transaction limits for PayPal or Wise?

Yes, both platforms have transaction limits depending on account type and verification status. Avoid processing large transfers on the same day to prevent exceeding these limits.

9. What’s the best time to initiate the transfer?

It’s advisable to process transfers during regular banking hours to ensure faster processing. Additionally, monitor exchange rates for the best timing if currency conversion is involved.

10. Can I transfer funds directly to Wise without a bank account?

No, an intermediary bank account is required to transfer money from PayPal to Wise, as there’s no direct integration between the two platforms.