Transferwise as withdrawal option?


#1

As everyone know, depending on where you live, Paypal takes more than 10% in fees for each payment between currency conversion fee, poor exchange rate, etc.

Paypal has 1.2 trustscore on Trustpilot, Skrill 2.8 and Payoneer 3.6

Transferwise has a 9.5 score on Trustpilot, much better rates, in fact their exchange rate is the one from Reuters and there is no currency conversion fees. So maybe Envato should consider it as an withdrawal option?


#2

That’s not all entirely true, but I can’t blame you for thinking it is due to their impressive marketing. I just tested it… I changed $100 from my Paypal account to GBP (using their currency conversion) and I got £78.22.

Transferwise is telling me that for the same amount, at the same time, they would give me £77.91. Not a massive difference, but it’s definitely worse than Paypal.

The reason Transferwise sounds better is all a bit of smoke and mirrors. They use the mid-market rate and Paypal use the wholesale rate. As a result, Paypal’s fees are higher, but they’re based on a better starting rate… so you end up getting about the same. Transferwise just focus on the lower fees to make it seem like you’re getting a better deal.

Although, if you’re in a country where Paypal charges you to withdraw the money to your bank, then you might end up getting a slightly better deal with Transferwise, so it does depend on individual circumstances. Just so you know!