PayPal Price Comparison Disclaimer: GBP to USD

TransferWise
12.02.18
2 minute read

Are you using PayPal in your business to pay or get paid internationally for goods and services? If so, you could save a bundle by opening a business account with TransferWise. That’s according to independent research agency Consumer Intelligence. The details of the research, including the raw transfer data, is available below.

Research Methodology

The research was carried out on the 16th January by market research agency, Consumer Intelligence, in conjunction with TransferWise. The data was ascertained via a series of transfers carried out by Consumer Intelligence and partners in various geographies.

There are three types of fees recorded for this price comparison:

  • Fee 1: an upfront international money transfer fee
  • Fee 2: the markup PayPal added to their exchange rate
  • Fee 3: the recipient fee PayPal charged when business receive international payments

Research took place on 5 routes within the same day. Date and timestamps are provided.

The Research

Route 3: Sending 2000 GBP to USD

As part of the research, Consumer Intelligence made a GBP 2,000 payment from a UK PayPal business account to a US PayPal business account.

This business payment incurred sending fees of GBP 65.80 with PayPal, and only GBP 8.76 with TransferWise.

TransferWise saved the sender GBP 57.04.

PayPal charged the US business who received this payment a recipient fee of USD 117.47 Transferwise charged no recipient fee.

TransferWise saved the recipient USD 117.47

The total amount that arrived at the US business via PayPal was USD 2,545.50. Via TransferWise the amount was USD 2,738.35.

Using TransferWise meant the US business got an extra USD 192.85

Here’s the raw data:

Sending GBP 2000 to USD: TransferWise vs PayPal Business 16.01.18 11:12

Fees/costTransferWisePayPal Business
Amount sending (in GBP)£2000£2000
Rate quoted by provider (Reuters’ exchange rate = 1.3752)£1 = US$1.3752£1 = US$1.3314
Provider exchange rate markup (in %)0%3.18%
Provider exchange rate markup (in GBP)£0£65.80
Upfront transfer fee (in GBP)£8.76£0
Total sender fees (in GBP)£8.76£65.80
Amount sent to recipient (in USD)$2,738.35$2,662.97
Recipient fees applied (in USD)$0$117.47
Recipient fees applied (in %)0%4.41%
Total recipient fees (in USD)$0$117.47
Final recipient amount (in USD)$2,738.35$2,545.50
Total cost of transfer (in GBP + USD)£8.76 + $0£65.80 + $117.47

All data was obtained independently by market research company Consumer Intelligence Ltd on January 16 2018, 11:12 UTC.

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