Use Wise when you're moving money between currencies, because it converts at the mid-market exchange rate and shows its fee separately, from 0.24% depending on the currency. Use PayPal when the person paying you already has a PayPal account and wants to pay in a click, but watch the currency step: PayPal's UK fee page lists conversions on a business balance at 3% above the base exchange rate. That's as of October 2026, from each company's own fee page.
This pair usually comes up after a client abroad has paid you and the number that landed looks smaller than expected. So I read Wise's pricing and safeguarding pages and PayPal's UK consumer fee page side by side. Here's what each says, as of October 2026.
Wise and PayPal compared
| Wise | PayPal (UK accounts) | |
|---|---|---|
| Exchange rate | The mid-market rate, the one you can check on Google | A base exchange rate with a conversion fee on top |
| Converting money | Fee varies by currency, from 0.24% | 3% above the base exchange rate when converting a business balance |
| Paying for things | Card spending in a currency you hold is free | No charge to pay for a purchase unless a currency conversion is involved |
| Sending to friends abroad | Fee depends on the currency | International personal transactions carry a 5% fee, with a minimum and maximum |
| Plans | No subscriptions or plans, you pay for what you use | No plans for personal accounts; business selling rates on a separate page |
| How your money is held | Safeguarded, kept separate from Wise's own money | Not set out on the pages I read |
| Reach | Personal and business accounts, multi-currency | Consumers and businesses in nearly 200 markets |
Where the money goes on a conversion
Wise's pricing page makes a pointed claim: it says other providers hide fees in the exchange rate. Its own approach is to use the mid-market rate and show a separate conversion fee, which it lists as varying by currency from 0.24%. You can see the whole charge before you send, and Wise says sending the same currency between Wise contacts is free.
PayPal's UK consumer fee page is long, but two lines matter most for anyone paid in another currency. Paying for a purchase is free unless it involves a currency conversion, and converting a balance in a business account is charged at 3% above the base exchange rate. Sending an international personal payment carries a 5% fee with a minimum and a maximum. None of this makes PayPal a bad choice; it means the currency step is where you pay.
How each one keeps your money safe
This is the part people rarely check. Wise's help centre explains that it isn't a bank lending your money out, so instead of deposit insurance it safeguards customer money: it keeps it separate from its own funds and holds most of it in secure liquid assets such as UK, EU and US government bonds and money market funds, plus several banks. It says the bonds it holds are mostly short term, with an average duration under 6 months. Know that difference before you leave a large balance anywhere.
Which to use, situation by situation
- A client abroad wants to pay by card or PayPal in a click: PayPal makes it easy for them, so accept it and decide when to convert.
- You invoice in dollars or euros and want the most of it in pounds: a Wise account lets you receive and convert at the mid-market rate plus its fee.
- You spend abroad on a card: Wise lets you spend money you already hold in that currency for free.
- You send money to family overseas: compare Wise's fee for that currency with PayPal's 5% international personal fee before you send.
- You hold a big balance: read how each provider protects it, not just what it charges.
If PayPal is already your main way of getting paid, read my piece on whether to rely on PayPal's conversion rate, and this guide to using invoicing software to get paid faster helps whichever one you choose.
My advice on Wise or PayPal
I'd keep both. PayPal is the account clients already trust and it removes friction at the moment of payment. Wise is where I'd move money between currencies, because the mid-market rate and a fee from 0.24% is easier to check than a margin built into a rate. If you only want one, choose based on where your money comes from: customers who pay by PayPal point to PayPal, and clients who pay by bank transfer in another currency point to Wise. Check both fee pages again before a big transfer, because rates and fees change.
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Frequently asked questions
Does Wise use the real exchange rate?
Wise's pricing page says it uses the mid-market rate, the one you can check on Google, and charges a separate conversion fee that varies by currency, from 0.24% as of October 2026.
What does PayPal charge to convert currency?
PayPal's UK consumer fee page lists conversions of a business account balance at 3% above the base exchange rate, as of October 2026. Personal purchases are free unless a currency conversion is involved.
Is Wise a bank?
Wise's help centre explains that it doesn't lend your money, so it safeguards it instead: customer money is kept separate from Wise's own money, mostly in secure liquid assets such as government bonds and money market funds.
Does PayPal charge to send money to family abroad?
PayPal's UK fee page lists international personal transactions at 5% of the amount, with a minimum and a maximum fee, as of October 2026.
Should a freelancer use Wise or PayPal?
Many use both: PayPal for clients who want to pay in a click, and Wise for receiving bank transfers in other currencies and converting at the mid-market rate plus its fee.
