Wise vs PayPal: Which payment gateway should you choose?
Dec 2, 2025
8 min
Key takeaways:
- Wise offers lower fees, mid-market exchange rates, and faster international transfers. This is ideal for freelancers and SMEs managing cross-border payments.
- PayPal is built for online checkout, invoicing, and customer payments, with integrations for platforms like Shopify and WooCommerce.
- Wise uses real exchange rates with no markup, while PayPal adds a hidden margin of 3–4% on currency conversions.
- PayPal supports international withdrawals to Malaysian banks, but it can be slower and more costly than Wise.
- Use Wise for cost-efficient transfers and PayPal for global checkout and client billing. Many businesses benefit from using both.
- Billplz complements both platforms by offering local payment methods (FPX, DuitNow QR, e-wallets), PayPal integration, and fast MYR bank settlements.
Introduction
Wise and PayPal are two of the most recognised names when it comes to sending and receiving money internationally. While both offer global payment capabilities, they serve very different functions.
- Wise (formerly TransferWise) focuses on international transfers and borderless accounts, offering real exchange rates with low, transparent fees.
- PayPal is a long-standing online wallet and payment gateway, popular for eCommerce, invoicing, and consumer payments.
This guide compares Wise and PayPal across key factors like fees, exchange rates, speed, and integrations, so you can choose the one that fits your business best.
Overview of Wise and PayPal
What is Wise?
Wise is a global money transfer service known for its transparent fees and mid-market exchange rates. Originally built for individuals, it now serves businesses with features like batch payments, multi-currency accounts, and local bank payouts in 70+ countries.
It’s ideal for Malaysian businesses looking to pay international suppliers, freelancers, or remote teams without inflated exchange rates or hidden charges.
What is PayPal?
PayPal is a global digital wallet and payment gateway. It allows users to send, receive, and withdraw funds internationally. For businesses, it offers checkout integrations with platforms like Shopify and WooCommerce, making it a top choice for eCommerce sellers.
However, PayPal comes with higher fees, including currency conversion markups, transaction fees, and withdrawal charges. All of which can eat into profits for small businesses or freelancers.
Comparison table: Wise vs PayPal
Here's a side-by-side look at how Wise and PayPal compare across core features, fees, and business suitability for Malaysian users
| Feature | Wise | PayPal |
| Core service | Designed for international bank transfers and multi-currency accounts. | Built as a global wallet and checkout solution for online payments. |
| Exchange rates | Uses the real mid-market rate with no hidden markup. | Applies a markup to exchange rates, increasing overall cost. |
| Transfer/receive fees | Charges a low, transparent fee upfront—no surprises. | Multiple fees apply, including higher transaction and conversion charges. |
| Supported countries | Available in over 70 countries with strong coverage for business transfers. | Operates in 200+ countries with wide consumer and merchant adoption. |
| Payment gateway integration | Does not offer native checkout or gateway functionality. | Fully integrated checkout options for eCommerce platforms. |
| Currency support | Offers a multi-currency account, including MYR support. | Supports MYR in select cases but with limitations for international use. |
| Withdrawal options | Direct and fast withdrawals to Malaysian bank accounts. | Withdrawals to local banks are slower and less transparent. |
| Ideal for | Best for freelancers, B2B transactions, and international payroll. | Suited for eCommerce, digital invoicing, and consumer-facing payments. |
Also read: Stripe vs PayPal: Which payment gateway should you choose?
Wise vs PayPal fees
Wise fees
Wise charges a small, upfront fee that combines a fixed amount and a percentage of the transaction. There are no hidden charges or exchange rate markups; what you see is what you pay.
PayPal fees
PayPal fees depend on the transaction type, currency, and country. Sending and receiving money, especially from international clients, can incur multiple charges:
- Transfer fee
- Currency conversion markup (typically 3–4%)
- Withdrawal fee
This can make PayPal more expensive, particularly for freelancers or SMEs receiving international payments.
Wise vs PayPal exchange rates
Wise exchange rates
Wise uses the mid-market rate, which is the real exchange rate you see on Google or Reuters, with no hidden markup. Instead of inflating the rate, Wise charges a small, transparent fee shown upfront before you send money. You always know exactly how much your recipient will get.
PayPal exchange rates
PayPal adds a markup to its exchange rates, usually between 3% and 4%. This hidden cost reduces the amount you receive in your local currency.
Does PayPal or Wise Offer Better Exchange Rates?
PayPal adds a margin to its exchange rate, typically around 3% to 4%. This markup is not always obvious, as it’s built into the rate itself rather than broken out separately. So, you may end up receiving less than expected, even before additional PayPal service fees.
Wise vs PayPal speed and payment experience
Wise is generally faster for international transfers, with payouts arriving in 1–2 business days and clear tracking throughout. It also supports batch payments, making it ideal for payroll or supplier payouts.
PayPal withdrawals to Malaysian banks typically take 3–5 business days. While Instant Transfer is available, it's not always guaranteed and may come with extra fees.
Which is faster for international payouts?
For speed and transparency in international payouts, Wise usually has the edge. PayPal works best for collecting payments via checkout or invoices, even if settlement takes a bit longer.
Wise vs PayPal safety and security
Both Wise and PayPal are trusted platforms that prioritise security and regulatory compliance.
Wise is licensed by Bank Negara Malaysia as a remittance, money-changing, and e-money issuance business with additional approvals from financial regulators worldwide. Its operations are built for transparency and compliance from the ground up.
PayPal is also regulated by Bank Negara Malaysia as an e-money issuer and follows international standards like PCI DSS to protect cardholder data. It also offers seller protection features, which are especially useful for online merchants.
When it comes to customer support, Wise often receives positive feedback for its clarity and responsiveness. PayPal’s support is more varied, given its large global user base and broader range of services.
Use case scenarios: Wise vs PayPal
Here’s how Wise and PayPal compare across common business scenarios in Malaysia, from freelancers to online sellers and SMEs managing global payments:
Freelancers in Malaysia
Wise is ideal for freelancers who want lower fees, better exchange rates, and fast transfers to local bank accounts. It's transparent, efficient, and well-suited for managing international payments.
PayPal, while costlier, remains a popular option thanks to its global reach. Many clients prefer it, especially in creative and tech industries, making it hard to ignore despite the higher fees.
eCommerce sellers
PayPal is built for online selling, with ready-to-use integrations for platforms like Shopify and WooCommerce. It’s a convenient checkout option for customers and comes with invoicing features.
Wise isn’t meant for eCommerce checkout, but it’s helpful for receiving payouts from global platforms and converting them to MYR affordably.
SMEs with international suppliers or payroll
Wise works well for cross-border business payments, offering batch transfers, real-time tracking, and competitive rates. It’s built to handle international B2B flows with ease.
PayPal is better suited for receiving payments than sending them. For supplier payments or payroll, its higher fees make it a less efficient option.
Which is better for your business: Wise or PayPal?
Both Wise and PayPal are strong platforms, but they serve different business needs. The better choice depends on how you get paid and how you move money across borders.
Choose Wise if:
- You want to keep costs low and avoid currency markups
- You’re a freelancer, SME, or service provider managing cross-border payments
- You need real exchange rates and fast, direct-to-bank transfers
Choose PayPal if:
- You run an eCommerce store and need integrated checkout or invoicing tools
- Your clients prefer PayPal as a payment method
- You operate on platforms where PayPal is the default or built-in option
Wise is more cost-efficient for global transfers. PayPal offers broader convenience for online payments and customer-facing transactions. Choose what fits your business flow best or use both where needed.
How do you choose the right platform for your payments?
Choosing between Wise and PayPal depends on your business priorities. Think about how often you handle international payments, which currencies you use, and whether you need tools like checkout or batch transfers.
But international tools are just one part of the puzzle.
For Malaysian businesses, having a reliable local payment setup is just as important. That’s where Billplz comes in. It complements your global platforms by supporting local payment methods like FPX, DuitNow, BNPL, and e-wallets, all with transparent, MYR-based pricing.
You also get fast settlements to Malaysian bank accounts and the ability to integrate PayPal for international transactions. That means one platform for both local and global payments, with full visibility and control in a single dashboard.
Whether you're scaling up or just getting started, Billplz brings the local infrastructure to support your global ambitions.
FAQ
Is Wise safe in Malaysia?
Yes. Wise is licensed by Bank Negara Malaysia as a provider of remittance, e-money issuance, and money-changing services. It operates under strict compliance and security standards both locally and globally.
Is PayPal available in Malaysia?
Yes. Malaysian users can create PayPal accounts to send, receive, and withdraw funds. However, certain limitations apply, especially when accepting payments in MYR or using it for local transactions.
Can I use Wise like PayPal?
Not quite. Wise is designed for international transfers and multi-currency account management. PayPal, on the other hand, is built for online payments, invoicing, and eCommerce checkout.
Is PayPal better or Wise?
It depends on your use case. Wise offers lower fees and better exchange rates for transfers, while PayPal is more convenient for consumer-facing transactions and online sales.
Can PayPal transfer to Malaysian banks?
Yes. You can withdraw funds from PayPal to your Malaysian bank account. Standard withdrawals usually take 3–5 business days and may come with conversion and withdrawal fees.
Can Maybank accept PayPal?
Yes. PayPal supports withdrawals to local banks like Maybank, provided your account is linked and verified. You’ll receive the funds in MYR, subject to PayPal’s exchange and transfer fees.
Which is cheaper for international transfers, Wise or PayPal?
Wise is generally more cost-effective due to its real mid-market exchange rate and lower, transparent fees. PayPal charges higher fees and includes a hidden markup in its currency conversions.
Is Wise a payment gateway or a money transfer service?
Wise is a money transfer platform. It helps individuals and businesses send, receive, and manage money across borders, but it doesn’t offer native checkout or gateway functionality.
Is Wise better than PayPal for international payments?
Yes, if your priority is cost savings and transparency. Wise typically offers lower total fees and more competitive exchange rates than PayPal for cross-border payments.
Can I use Wise and PayPal together?
Absolutely. Many businesses use Wise for sending or receiving funds internationally, while using PayPal for customer payments or eCommerce checkout.
Does PayPal support Malaysian Ringgit?
Yes, PayPal supports MYR, but usage is limited for international transactions. Currency conversion fees may apply when receiving or withdrawing funds in MYR.
Can I integrate Wise with WooCommerce?
No. Wise does not offer native WooCommerce or eCommerce checkout integration. It’s meant for bank-to-bank transfers, not for direct consumer payments.
Is Wise a replacement for a business bank account?
Not entirely. Wise offers multi-currency accounts and helps manage international transactions, but it doesn’t replace the full functionality of a traditional business bank account.
Is Billplz better for Malaysian customer payments?
Yes. Billplz is purpose-built for Malaysian businesses, offering FPX, DuitNow QR, and e-wallet support with local bank settlement and MYR-based transparent pricing. It’s a strong complement to global tools like Wise or PayPal.
Conclusion
Wise and PayPal are built for different strengths. Wise excels in affordable, direct international transfers, while PayPal remains a go-to option for online checkout and global customer payments.
But if you're a Malaysian business that wants to manage both international and local payments efficiently, you don’t need to choose just one.
Billplz bridges the gap by offering:
- A local-first payment gateway with FPX, DuitNow, and e-wallet support
- Seamless PayPal integration for overseas customers
- Transparent MYR-based pricing and fast bank settlements
With Billplz, you can streamline your entire payment stack, from cross-border transactions to domestic collections, all in one flexible, business-friendly platform.
Explore how Billplz helps you simplify payments while staying local, secure, and scalable.
Start with Billplz to give your business a trusted, scalable payment backbone designed for the future. New merchants receive MYR 25.00 in starter credit with code GROWTHPRO (valid until 31 December 2025).
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