Wise and PayPal both move money between countries, but they do different jobs. PayPal is mostly a way for clients to pay you, by card or PayPal balance. Wise is closer to a bank account that holds many currencies, with local account details so clients can pay you by bank transfer. Here is how they compare for a business or freelancer, using US fees as of October 2026.
The short verdict
- Pick Wise if your clients pay by bank transfer, you invoice in other currencies, or you lose too much on currency conversion today.
- Pick PayPal if your clients want to pay by card or with their PayPal account, or a platform you work with only pays out through PayPal.
You can also use both: PayPal for clients who ask for it, and Wise for the rest.
Fees, as of October 2026
These figures are for US accounts, from each company's own pages. Fees depend on your country, the currency and the payment method, so check the page for your country.
- Set-up: a 31 dollar fee to get Wise Business features, including account details to receive money in 22 currencies.
- Receiving local payments that are not wires or Swift, such as a domestic USD or EUR transfer: free.
- Receiving a USD wire or Swift payment: 6.11 dollars per payment.
- Converting currency: from 0.23%, varying by currency, at the mid-market exchange rate.
- Holding money: free.
- Receiving a card payment: 2.99% + 49¢. A PayPal Checkout payment: 3.49% + 49¢.
- Payment from a customer in another country: 1.5% more.
- Currency conversion: a spread of 3% or 4% added to the exchange rate, depending on the transaction.
- Standard transfer to your bank: free when no conversion is involved.
- Instant transfer to your bank: 1.5% of the amount.
Wise's receiving fees come from its receiving page. Wise says there is always a free way to receive, even where a wire has a fee.
A worked example
A US freelancer invoices a client in Germany for 2,000 euros and wants dollars.
- With Wise, the client sends a local euro transfer to your Wise euro account details. Receiving is free. You then convert to dollars at the mid-market rate, with a conversion fee that starts at 0.23% and varies by currency.
- With PayPal, the client pays by PayPal. You pay the domestic rate plus 1.5% for an international payment, and then a 3% or 4% spread if PayPal converts the euros to dollars.
The exact numbers depend on the rate on the day, but the gap on a large invoice can be many dollars. Use each company's calculator with your own amount before you decide.
The differences that matter
How your client wants to pay
This often decides it. Some clients and platforms only pay by PayPal. Others pay large invoices by bank transfer and will not use PayPal. Ask your clients before you set up anything.
Currency conversion
Wise's model is built around the mid-market rate with a visible fee. PayPal adds a spread to its exchange rate. If you convert often, this difference matters more than the payment fee.
Buyer and seller protection
PayPal has a dispute process for payments made through it, and its fee page lists dispute fees. A bank transfer to Wise works more like a normal bank payment. Clear contracts and payment terms protect you either way.
Account type and access
Wise Business lets you set team access and pay up to 1,000 people at once in a batch. PayPal also has business accounts. Check that your country is supported for the account type you need.
How to decide
- List your clients and ask how each prefers to pay.
- Add up how much you convert between currencies in a year.
- Run one real invoice through each company's fee calculator.
- Check both accept businesses in your country.
- Keep records of every fee for your accountant.
If you are looking at Payoneer too, see Payoneer vs Wise. For more options, read PayPal alternatives for freelancers. And whichever you use, a clear invoice with the currency and payment details written out gets you paid faster. This is not tax or financial advice. Rules differ by country, so check with an accountant.