PayPal Business Price Comparison Disclaimer: Sending USD

TransferWise content team
14.11.18
3 minute read

Note: the following research took place on October 11-16 2018 by an independent research agency. As of 8 March 2019, the cost of sending 2000 USD to GBP and AUD with TransferWise has gone down for all customers. Please always check your account for the latest pricing. Learn more

Are you using PayPal in your business to pay or get paid internationally for goods and services? If so, you could save on average 14x more by opening a TransferWise for Business account.

Research Methodology

The research was carried out between 11-16th October by market research agency, Alderson Consulting (Bristol), in conjunction with TransferWise. The data was ascertained via a series of transfers carried out by Alderson Consulting (Bristol) 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

Date and timestamps are provided.

The Research

Route 1: Sending 2000 USD to GBP

As part of the research, Alderson Consulting made a USD 2,000 payment from a US PayPal business account to a UK PayPal business account.

This business payment incurred sending fees of USD 62.30 with PayPal, and only USD 13.46 with TransferWise.

TransferWise for Business saved the sender USD 48.84

PayPal charged the UK business who received this payment a recipient fee of GBP 64.79. TransferWise for Business charged no recipient fee.

TransferWise for Business saved the recipient GBP 64.79

The total amount that arrived at the UK business via PayPal was GBP 1,403.21. Via TransferWise the amount was GBP 1,505.00.

Using TransferWise for Business meant the UK business got an extra GBP 101.79

Here’s the raw data:

Sending USD 2000 to GBP: TransferWise for Business vs PayPal business

Fees/costTransferWise for BusinessPayPal business
Amount sending (USD)$2000$2000
Rate quoted by provider (Reuters’ exchange rate = 0.7576)US$ 1 = £0.7575US$ 1 = £0.7340
Provider exchange rate markup (%)0.01%3.12%
Provider exchange rate markup (USD)$0.29$62.30
Upfront transfer fee (USD)$13.17$0
Total sender fees (USD)$13.46$62.30
Amount sent to recipient (GBP)£1,505.00£1,468.00
Recipient fees applied (GBP)£0£64.79
Recipient fees applied (%)0%4.41%
Total recipient fees (GBP)£0£64.79
Final funds available to recipient (GBP)£1,505.00£1,403.21
Total cost of transfer (USD + GBP)$13.17 + £0$62.30 + £64.79

All data was obtained independently by market research company Alderson Consulting on October 11 2018, 09:12 UTC.

Route 2: Sending 1732 USD to AUD

As part of the research, Alderson Consulting made a USD 1,732 payment from a US PayPal business account to an Australian PayPal business account.

This business payment incurred sending fees of USD 52.92 with PayPal, and only USD 15.26 with TransferWise.

TransferWise for Business saved the sender USD 37.66.

PayPal charged the Australian business who received this payment a recipient fee of AUD 84.91. Transferwise charged no recipient fee.

TransferWise for Business saved the recipient AUD 84.91

The total amount that arrived at the French business via PayPal was AUD 2,265.47. Via TransferWise the amount was AUD 2,403.09.

Using TransferWise for Business meant the Australian business got an extra AUD 137.62

Here’s the raw data:

Sending USD 1,732 to AUD: TransferWise for Business vs PayPal Business

Fees/costTransferWise for BusinessPayPal business
Amount sending (in USD)$1732$1732
Rate quoted by provider (Reuters’ exchange rate = 1.3998)US$ 1 = A$1.3998US$ 1 = A$1.3570
Provider exchange rate markup (in %)0%3.06%
Provider exchange rate markup (in USD)$0$52.92
Upfront transfer fee (in USD)$15.26$0
Total sender fees (in USD)$15.26$52.92
Amount sent to recipient (in EUR)A$2,403.09A$2,350.38
Recipient fees applied (in EUR)A$0A$84.91
Recipient fees applied (in %)0%3.61%
Total recipient fees (in EUR)A$0A$84.91
Final recipient amount (in EUR)A$2,403.09A$2,265.47
Total cost of transfer (in USD + AUD)$15.26 + A$0$52.92 + A$84.91

All data was obtained independently by market research company Alderson Consulting on October 16 2018, 07:56 UTC.

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