Wise vs PayPal: Which is Better for International Payments 2025?
Choosing between Wise vs PayPal for international payments 2025 can significantly impact your bottom line. As an Indian freelancer or business owner receiving money from abroad, every percentage point in fees matters.
While PayPal and Wise offer reliable ways to get paid, they differ dramatically in their approach to fees, exchange rates, and features.
Let's dive into a practical comparison to help you pick the platform that puts more money in your pocket.
Wise vs PayPal: Understanding the Differences
What is Wise?
Wise (formerly TransferWise) is a digital financial platform specializing in international money transfers. Wise stands out for using accurate mid-market exchange rates and transparent fee structures. For Indian businesses and freelancers, Wise Account offers multi-currency accounts that let you receive payments from over 50 countries as if you had a local bank account.
It started as a peer-to-peer remittance service allowing individuals to send and receive money without intermediaries like banks. Later, it grew as a business-to-business money transfer service for organizations to receive and make international business payments. In India, Wise Business lets you receive international payments in multiple currencies, but you can’t use it to send business payments abroad. Also, Wise Debit card is not available to businesses in India.
Moving forward, we'll focus on comparing Wise Business and PayPal for receiving international payments, excluding Wise's peer-to-peer service
Pros of Wise
- It uses mid-market exchange rates without markup
- Lower overall fees (around 1.6-1.7% for major currencies)
- Provides instant digital FIRA certificates
- Multi-currency accounts for receiving payments
- Fast money transfers with 80% completed within 24 hours
- Clear, upfront fee structure
- Strong API integration capabilities for businesses
Cons of Wise
- Its fees can add up for larger payment volume. For eg, for a payment of USD 10,000, Wise's fee would be USD 161.98, excluding the FIRA fee.
- Additional fee for FIRA
- Lack of an India-based support team
- Wise debit card is not offered to Indian users
- Businesses can only request up to USD 10,000 for each payment
- Not as widely accepted as PayPal Business
Pricing
For receiving payments in India:
- Base conversion fee: ~1.6-1.7% for major different currencies
- eFIRC fee: Varies by currency ($2.50 for USD)
- Mid-market exchange rate with no markups
- GST charges apply
🔖Learn about the Wise alternatives
What is PayPal?
PayPal is a payment platform serving over 400 million users worldwide. It functions primarily as an international payment gateway, letting you receive money from clients across 200+ countries. While PayPal offers extensive features globally, its services in India are explicitly focused on cross-border transactions.
Pros of PayPal
- Widely accepted and trusted globally
- Easy setup and intuitive interface
- Monthly digital FIRA provided
- Built-in buyer and seller protection
- Multiple payment methods are supported
- Instant notifications for recurring payments
- Strong fraud prevention and security measures
- Seamless integration with e-commerce platforms
Cons of PayPal
- High transaction fees (4.4% base fee)
- Substantial currency conversion markup (4%)
- No domestic transactions in India
- Limited features compared to global offerings
- No PayPal account Credit or Buy Now Pay Later in India
- Mixed customer service experiences
- Daily transaction limits apply
Pricing
For receiving international payments:
- Transaction fee: 4.4% of transfer amount
- Currency conversion: 4% markup on real exchange rate
- Fixed fee: Varies by currency ($0.30 for USD)
- Monthly FIRA included
🔖Learn about the PayPal alternatives
Wise vs PayPal: A Quick Comparison
Let's examine how Wise vs. PayPal compares when receiving international payments in India. With significant differences in their fee structures and features, choosing between these platforms can directly impact your earnings.
Here's a comprehensive breakdown of PayPal vs Wise to help you make an informed decision:
| Wise | Paypal | |
| Pricing | 1.7%-1.9% of the transaction amount + $2.50 for FIRA for USD payments | 4.4% transaction fee+ 4% currency conversion fee+ Fixed fee ($0.30 for USD) |
| Support | No India based support | No India based support |
| Compliance | Digital FIRA for every transaction at additional cost | Free month digital FIRA |
| Exchange rate | Mid-market exchange rate without markup | 4% forex markup |
When to choose Wise
- If you prioritize lower monthly fees and better, competitive rates
- When you regularly receive large international payments
- If accurate mid-market exchange rates matter to your business
- When you need immediate eFIRC for each transaction
- If you have technical resources for API integration
- When your clients are comfortable with bank transfers
- If you want transparent pricing without hidden markups
When to choose PayPal
- If your clients specifically prefer PayPal payments
- When you need broad payment method acceptance
- If immediate account setup is essential
- When you require seller protection features
- If your business relies on e-commerce integrations
- When you value brand recognition with clients
- If you need flexible payment processing options for clients
Skydo: An Affordable Alternative to Wise and PayPal
When comparing Wise vs PayPal, it's worth considering emerging alternatives that offer even better value. Skydo is an India-made solution designed explicitly for receiving international online payments with significantly lower fees than TransferWise and PayPal.
What is Skydo?
Skydo is a modern payment platform tailored for Indian businesses and freelancers receiving international payments. It provides virtual global bank accounts in 10+ different countries, including the United States, UK, Canada, and Australia. These accounts give you local banking details that clients can use to send payments as domestic transfers - eliminating SWIFT fees and international wire charges that typically cost $20-40 per transaction.
Pros of Skydo
- Transparent and affordable fee structure ($19 for payments up to $2,000; $29 for $2,001-$10,000; 0.3% for $10,000+)
- Zero forex markup (uses live currency exchange rates)
- Instant and free FIRA for every transaction
- Fast settlement within 24-48 hours
- Real-time payment tracking
- India-based support team
- Quick 5-minute setup for global accounts
Curious if Skydo is the right fit for your business? Sign up for a free demo to find out.
