PayPal vs Airwallex: fees, features and advantages

Regardless of whether it is a startup or a small and medium-sized enterprise (SME), choosing a convenient, cost-effective and secure payment and collection method is crucial for expanding both local and international business. This article compares PayPal and Airwallex, focusing on fees, features, and advantages for business accounts.  It aims to help you discern the differences and determine which platform is better suited to streamline your business operations.

What is PayPal?

PayPal is a globally renowned third-party online payment platform. Founded in 1998, it went public on the NASDAQ in 2015. By the end of 2023, Paypal had a staggering 426 million active consumer and merchant accounts. Simply link your bank account, credit card, or other payment methods to your PayPal account to make payments on shopping websites or other online merchants in over 200 countries and regions worldwide. Additionally, PayPal offers transfer services so users can send funds directly to other PayPal accounts, though transaction fees may apply.

PayPal offers Personal accounts, Premier accounts, and Business accounts. For startups and SMEs, a Business account facilitates payments to merchants in over 180 markets in 24 currencies. Businesses can receive credit card payments and make payments to anyone with an email address.

PayPal’s main business offerings include:

• Online payments: Solutions for online payments via websites, mobile devices, or online invoices

• Online money transfers: Simply enter the recipient's email address, users can send payments, remittances, and transfers to PayPal merchants or suppliers

• Business data analysis

PayPal is an online platform which its Hong Kong company, PayPal Hong Kong Limited, is regulated by the Hong Kong Monetary Authority. It is worth noting that PayPal is not covered by the Deposit Protection Scheme Ordinance.

What is Airwallex?

Airwallex, founded in 2015, is an all-in-one financial and money transfer platform designed to enhance efficiency and profitability for businesses. It offers a suite of services including multi-currency accounts, fast international transfers, corporate cards, expense management, and online payment collection, all of which streamlines global payment processes and financial operations.

With over 60 licenses and permits worldwide, Airwallex serves more than 100,000 businesses, including notable clients like the K Dollar, sustainable retailer Slowood, and the travel agency Travel Expert. Annually, Airwallex processes over $900 billion in global payments.

With Airwallex, users can easily open a multi-currency Global Account on our website in just minutes. Enjoy the convenience of setting up accounts with comprehensive local bank information in over 23 currencies, including USD, GBP, EUR, AUD, CNY, HKD, and CAD. Businesses can receive payments in their preferred currencies from international customers and use those funds to cover expenses in the same currency, such as payments to suppliers and employee salaries.  This approach helps avoid unnecessary currency conversion fees.

Airwallex simplifies international transfers with ease. Our extensive payment network spans over 150 countries and regions, supporting more than 60 currencies at interbank rates. Businesses can enjoy exchange rates as low as 0.2% above the interbank rate, and save up to 80% on foreign exchange fees. On top of that, over 90% of transactions are processed locally rather than through the SWIFT system, with approximately 85% of funds credited within hours or on the same day. Impressively, around 50% of transactions are completed instantly.

Additionally, Airwallex offers Application Programming Interface (API) integration, allowing businesses to receive customer payments in various ways, including:

• Pre-built integrations for popular e-commerce platforms like Shopify, WooCommerce, and Magento

• Redirecting customers to Airwallex-hosted pages on the company's website for payments

• Setting up checkout flows directly in the backend using the Airwallex API and accepting payments within iOS or Android applications using Software Development Kits (SDKs)

Airwallex functions as an all-in-one financial and money transfer platform regulated by the Hong Kong Customs and Excise Department.  It holds a Money Service Operator license (MSO License No. 16-09-01929). The company also employs multi-factor authentication to safeguard user data and has implemented two-factor authentication for enhanced security.

Comparison of Airwallex vs Paypal

PayPal fees

With a Paypal business account, you can buy or sell goods/services, receive payments via QR code, and handle various business transactions.  Please note that transaction fees will apply, and the general fees are outlined below.

• Standard rate for receiving domestic transactions: 3.9% + fixed fee for commercial transactions; 2.9% + fixed fee for QR code transactions

• Receiving international transactions: Fee for receiving domestic transactions applies + additional percentage-based fee (usually +0.5%)

• Receiving domestic transactions using Online Card Payment Services: 3.9% + fixed fee for advanced credit and debit card payments

• Currency exchange: 3% above the base exchange rate

Airwallex fees

To open a Business Account with Airwallex, here are the main charges you can expect:

• Multi-currency account:  Free account setup with no monthly fees

• International money transfer: Local payments are free of charge, while SWIFT transfers range from HK$120 to $200

• Currency conversions: 0.2% above the interbank rate

• Borderless Visa card: Free issuance of multi-currency virtual corporate cards and exempted from international transaction fees

How can SMEs simplify global fund management with Airwallex?

Airwallex offers comprehensive global Business Accounts so businesses can exchange currencies worldwide at any time. By allowing payments to be received directly in the customer's currency, it eliminates unnecessary conversion fees. All transactions are transparently displayed in the online account so SMEs can streamline global payments and financial operations.

Additionally, Airwallex provides various API integration options, connecting seamlessly with popular platforms such as Xero, Amazon, and Shopify. This integration empowers businesses to fully control the checkout process and enhance the overall customer experience.

Frequently asked questions

1. Can I use PayPal for money transfer?

Yes you can. Users can make payments to merchants in over 180 markets and choose from 24 currencies. Note that exchange fees (basic exchange rate plus 3%) and other transaction fees may apply, depending on the transfer amount and designated country/region. Airwallex is an alternative provider for international transfers. Airwallex offers FX rates as low as 0.2% above the interbank rate, resulting in savings of up to 80% on foreign exchange fees. With over 90% of transactions processed through the local payment rails,there are no SWIFT fees involved.

2. Is it safe to transfer money with Airwallex?

Yes it is. Airwallex is regulated by the Hong Kong Customs and Excise Department, and holds a Money Service Operator license (MSO License No. 16-09-01929). Our systems and procedures adhere to the highest global security standards, including PCI DSS Level 1, SOC 1, and SOC 2 standards.

3. How much does it cost to open an Airwallex multi-currency account?

It's free to open a Global Account. With our multi-currency account, you can manage over 23 different currencies, including USD, EUR, SGD, RMB, etc.

Sources: 

Information on PayPal was retrieved as of July 2024, from below sources. Information provided is for reference only. Please refer to the official website of PayPal for the most up-to-date details

1. https://about.pypl.com/who-we-are/history-and-facts/default.aspx

2. https://www.paypal.com/hk/business/make-payments

3. https://www.paypal.com/hk/legalhub/useragreement-full?locale.x=en_HK

4. https://www.paypal.com/hk/webapps/mpp/merchant-fees?locale.x=en_HK

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].