By zoostoki 
Key Takeaways
- Direct transfers between PayPal and Wise (formerly TransferWise) are not possible; a linked bank account is required to move funds between the platforms.
- To transfer money, withdraw funds from PayPal to a linked bank account, then transfer them to Wise via its platform.
- Ensure the bank account is registered with both PayPal and Wise for smooth transactions and to avoid delays or errors.
- PayPal applies fees for withdrawals and currency conversions, while Wise offers lower fees with real exchange rates.
- Alternatives like digital wallets, third-party services, and P2P platforms can help facilitate transfers indirectly.
- Verifying account details, matching currencies, and understanding associated fees are essential for a successful money transfer process.
Managing money across platforms like PayPal and TransferWise (now known as Wise) can feel tricky, especially when you’re dealing with international transactions. I’ve found myself wondering if it’s possible to move funds directly between these two services without unnecessary hassle or hidden fees. It’s a common question, and the answer isn’t always straightforward.
Both platforms are incredibly popular for their unique features—PayPal for its convenience and Wise for its low-cost currency conversions. But combining their strengths requires a bit of know-how. If you’ve been curious about whether you can send money from PayPal to Wise, you’re not alone. Let’s dive into the essentials to make it all clearer.
Can I Send Money From PayPal To TransferWise?
Direct transfers between PayPal and Wise accounts aren’t possible as PayPal doesn’t support Wise as a direct transfer recipient. PayPal restricts outgoing transfers to linked bank accounts, debit cards, or specific third-party services, and Wise isn’t included in these options.
To move funds, link your Wise account to an eligible bank. Withdraw the money from PayPal into this bank account, then transfer it to Wise using the Wise platform. This two-step process enables the transaction without violating platform rules.
Ensure the bank account is registered with both PayPal and Wise. Matching account details streamline transfers and prevent errors or delays during processing. PayPal transaction fees and conversion rates may apply if the currencies differ from your Wise currency preferences.
How PayPal Works
PayPal provides a secure and convenient platform for online payments, allowing users to send, receive, and store money globally. Its extensive features cater to both individuals and businesses.
Key Features Of PayPal
PayPal offers multiple functionalities beyond basic transactions. It supports linking bank accounts, debit, and credit cards for seamless funding and withdrawals. Users can make payments in over 200 countries and 25 currencies, simplifying international transactions. The Buyer Protection feature safeguards purchases, and the Seller Protection program reduces fraud risks. PayPal also provides invoicing, subscription management, and integrations with e-commerce platforms like Shopify and eBay for business users.
Sending And Receiving Money With PayPal
Transferring money on PayPal is straightforward. To send money, I enter the recipient’s email or mobile number, choose the currency, and confirm the transaction. The recipient receives funds instantly in their PayPal account. For receiving money, I share my email or set up links for payments. PayPal applies transaction fees for international payments and currency conversions, and limits may apply based on account status or funding source.
How Wise (Formerly TransferWise) Works
Wise is a digital financial service designed for international money transfers, offering low-cost and transparent currency exchange rates. It simplifies sending money abroad by using real exchange rates without inflated markups.
Key Features Of Wise
- Real Exchange Rates
Wise uses mid-market exchange rates, ensuring users avoid hidden fees common with traditional banks and other services.
- Multi-Currency Accounts
Users can hold, send, and receive money in over 40 currencies, all from one account.
- Low Transfer Fees
Fees are displayed upfront, calculated based on the transfer amount and currency type.
- Local Account Details
Wise provides bank details for multiple countries (e.g., US, UK, EU), enabling users to receive money like a local.
- Fast Transfers
Most transactions are processed within hours or a few days, depending on the transfer method and recipient country.
Advantages Of Using Wise For International Transfers
- Cost Transparency
Wise doesn’t include hidden charges or markups on exchange rates, lowering costs compared to PayPal or traditional banks.
- Efficiency In Transactions
With local account details, sending and receiving money across borders is faster and more convenient.
- Global Accessibility
The platform supports over 70 countries, making it accessible for users worldwide.
- Regulated And Secure Platform
Wise adheres to financial compliance standards in all the countries it operates, ensuring user funds are protected.
- Multi-Purpose Use
It’s suitable for freelancers, businesses, and individuals transferring money internationally.
Steps To Transfer Money From PayPal To Wise
Transferring funds from PayPal to Wise involves a multi-step process since there are no direct transfers between the two platforms. I follow these steps to link accounts, convert currencies, and move money efficiently.
Linking PayPal And Wise Accounts
I ensure my Wise account is linked to an eligible bank account first. Wise provides local bank account details for certain currencies, which I register with PayPal as a new bank account. In PayPal’s “Wallet” section, I input the Wise account details under the “Link a Bank” option. I complete the verification by confirming the micro-deposit amounts sent by PayPal.
Converting Currency Before Transfer
If my PayPal balance is in a different currency than my Wise account, I opt to convert it directly in PayPal. I select the “Currency Calculator” feature in the PayPal dashboard, then exchange my funds to match my Wise account’s preferred currency. While PayPal’s conversion rates include an additional fee, this helps avoid any incompatibility when transferring funds to Wise.
Transferring Funds Between Platforms
I withdraw money from PayPal by selecting my linked Wise bank account. In the withdrawal process, I enter the exact amount and confirm the action. Once the funds reflect in my Wise account, I can utilize Wise’s interface to make international transfers or manage multi-currency balances. This ensures the transaction process remains secure and aligns with both platforms’ regulations.
Possible Limitations And Fees
PayPal applies fees during withdrawals and conversions, which can impact the total transfer amount. For currency conversions, PayPal charges a markup on exchange rates, typically ranging from 3% to 4% above the wholesale rate. Additionally, withdrawing funds from PayPal to a linked bank account may incur a fee if the transaction involves cross-border processing or non-local currencies. For example, withdrawing USD to a bank account outside the United States might involve additional costs.
Wise, known for low-cost services, applies transparent fees when transferring or converting money. These fees differ based on the currency, amount, and country but remain generally lower than standard bank or PayPal charges. Wise also provides real exchange rates, which eliminates hidden costs found in PayPal’s markup. However, completing a transfer through Wise requires a successful withdrawal of funds from PayPal into the linked bank account first.
Delays may occur if discrepancies arise between the linked bank account details in PayPal and Wise. It’s crucial to verify all registration information to prevent errors during withdrawal and subsequent transfers. Both platforms also apply restrictions on large transactions, requiring additional verification for higher sums. Validating accounts and ensuring compliance with these security measures can reduce processing delays.
Alternatives To Transferring Money Between PayPal And Wise
- Direct Bank Transfers
I can connect both my PayPal and Wise accounts to the same bank account. By withdrawing funds from PayPal to the linked bank account and then transferring them to Wise, I bypass the direct transfer limitation. This approach ensures compliance with platform rules while maintaining control over timing and fees.
- Third-Party Payment Services
Some third-party platforms, such as Payoneer or Revolut, facilitate money movement between PayPal and Wise indirectly. I can transfer funds from PayPal to these platforms and then forward them to Wise. However, I ensure compatibility with all accounts and verify the fees involved.
- Digital Wallets
I can use multi-purpose digital wallets, like Skrill or Neteller, to mediate between PayPal and Wise. These wallets allow me to receive transfers from PayPal and re-route funds to Wise. I always confirm transfer limits, regional availability, and associated costs when using this method.
- Peer-to-Peer Exchange Platforms
I can leverage currency exchange communities or P2P platforms like LocalBitcoins for transferring money indirectly. By converting PayPal funds to cryptocurrency and cashing out to Wise, I can navigate the transfer process. This method may involve extra steps and market-dependent rates.
- Currency Exchange Services
I may consider traditional forex or money exchange services to facilitate this process. Moving PayPal funds to a provider, which then sends money to Wise, can be a viable option. I research transaction rates and processing times before selecting this alternative.
- Invoice Payments
For business purposes, I request a Wise-linked invoice from clients to receive payments via PayPal. While indirect, this simplifies receiving international payments without manual withdrawals and transfers.
Conclusion
Navigating transfers between PayPal and Wise might require extra steps, but it’s entirely manageable with the right approach. By linking an eligible bank account to both platforms, you can take advantage of PayPal’s convenience and Wise’s cost-effective currency conversions. While there are fees and potential delays to consider, understanding each platform’s processes ensures smoother transactions. Whether you’re managing personal finances or running a business, planning ahead and verifying account details can save time and money.
Frequently Asked Questions
Can I transfer money directly from PayPal to Wise?
No, direct transfers from PayPal to Wise are not supported. To transfer funds, you must first withdraw money from PayPal to a linked bank account and then transfer it to Wise.
What fees apply when transferring money from PayPal to Wise?
PayPal applies fees for withdrawals and currency conversions, including a 3%-4% markup on exchange rates. Wise charges low, transparent fees for transfers. Always check both platforms for applicable fees.
How do I link my Wise account to PayPal?
You cannot link your Wise account directly to PayPal. However, you can link Wise’s local bank details to PayPal through an eligible bank account.
Are there payment limits when transferring between PayPal and Wise?
Yes, both PayPal and Wise may have limits for large transactions. Additional verification might be required for higher sums to ensure compliance.
How long does it take to transfer funds from PayPal to Wise?
It usually takes 1-3 business days, depending on your bank’s processing time. Delays may occur due to discrepancies in account details or verification requirements.
Can I use a third-party service for PayPal to Wise transfers?
Yes, third-party services like Payoneer, Revolut, or Skrill can be used as intermediaries. Be mindful of fees and transfer limits associated with these platforms.
Why do I need to link a bank account to both PayPal and Wise?
A linked bank account acts as an intermediary for transferring funds, as direct transfers between PayPal and Wise are not possible.
Does PayPal charge for currency conversions?
Yes, PayPal charges a conversion fee and adds a markup (typically 3%-4%) to the exchange rate if the transaction involves different currencies.
Why should I consider Wise for international money transfers?
Wise offers low fees, real exchange rates, and transparent costs, making it ideal for cost-effective international transfers compared to PayPal.
Are alternative methods available to send money between PayPal and Wise?
Yes, alternatives include using direct bank transfers, multi-currency wallets (e.g., Neteller), or peer-to-peer exchange platforms. Verify compatibility and associated costs before proceeding.