Global payments
Posted on Mar 24, 2025
Imagine this: You've just completed a project for a US client. Payment time arrives, and they ask – "Should I pay it through PayPal or Wise?"
You are aware that there are fees, delays, and exchange rate markups involved but which one is preferable?
Don't worry – we're cutting through the jargon and simplifying Wise vs PayPal to assist you in making the correct decision.
Platform Overview – Wise vs PayPal
Wise (formerly TransferWise) and PayPal are equally popular for getting paid internationally, but they operate very differently.
Wise – Cost-Effective & Transparent
Provides the mid-market exchange rate with no secret markups.
Low and clear fees.
Ideal for freelancers, SMEs, and businesses making regular global payments.
PayPal – Convenient but Costly
Global reach, widely accepted by clients.
High fees and secret currency conversion charges.
Good for instant one-off payments but expensive for regular transfers.
Related Read: Best Way to Get International Payments in India.
Fees Breakdown – Who Charges What?
Wise Fees
Conversion fee is 1.6-1.7%, excluding e-FIRC which is for 2.5 USD.
No hidden foreign exchange markups and GST charges apply.
PayPal Fees
4.4% transaction fees + 4% currency conversion fee.
Additionally, 4% forex markup.
Real Example: If you get $1,000
Wise: You receive approximately ₹84,000
PayPal: You receive approximately ₹77,000
That's a ₹7,000 difference – in fees alone.
Compliance and Tax Reporting – What You Should Know
Compliance is an important consideration for Indian businesses and freelancers when receiving cross-border payments.
Wise
Assists with FIRA, e-BRC, and Purpose Code reporting.
Cooperates nicely with RBI rules for cross-border payments.
PayPal
No inherent support for e-BRC or FIRA.
You need to manually supply tax documents.
Related Read: How to be Compliant with RBI Rules on Cross-Border Payments
Infinity– Better Than Both?
Rather than using Wise or PayPal, why not employ a payment solution designed for Indian businesses? Infinity supports receiving international payments in more than 50+ currencies. You can easily receive your payment by opening an Infinity account which hardly takes 5 minutes. Follow a simple 5 minutes KYB process and you have your multi-currency account ready for receiving payments.
Why Infinity?
Flat 0.5% transaction fees with no other costs and zero markup.
RBI compliant with automatic filing of purpose code and instant FIRA with no additional cost.
Real-time tracking and 1 day settlement speed.
Recommended Read: Get Set Up a Multi-Currency Business Account within Minutes with Infinity
FAQs
Which is safer, Wise or PayPal for Indian users?
Both are secure for international transactions, though Wise provides stronger compliance and transparency for Indian business firms.
Does Wise support INR?
Wise doesn't maintain INR but permits direct global payments into Indian bank accounts.
Can freelancers in India use PayPal legally in 2025?
Yes, with stiff fees and regulatory problems indian freelancers can use PayPal for receiving international payments. It is preferable to use Infinity instead for better pricing and hassle-free transfers.
