Wise vs. Revolut vs. PayPal: The Ultimate 2025 Showdown

A New World of Money for Travellers and Freelancers

If you’re a freelancer, a digital nomad, or just someone who loves to travel, you’ve probably felt the pain of old-school banking. The high fees, confusing exchange rates, and slow transfers just don’t work for a global lifestyle.

That’s why a new wave of finance apps—or fintech—has completely changed the game. They promise to move your money faster, cheaper, and with way less hassle.

Three big names dominate this space: Wise, Revolut, and the long-standing giant, PayPal. But when it comes to your money, which one should you trust? Choosing the right service isn't just about convenience; it's a big financial decision.

Meet the Contenders

To figure out which is best, you first have to understand what each company is trying to be. Their goals shape everything from their prices to their features.

Wise: The Transparent Choice. Wise (which used to be TransferWise) was started by people who were fed up with hidden bank fees. Their whole mission is to be upfront and cheap, offering the real mid-market exchange rate with a small, clear fee. Think of it as a specialized tool that does one thing really, really well.
Revolut: The All-in-One Money App. Revolut wants to be more than just a way to send money. It’s a "super app" that aims to replace your bank account entirely. It packs everything from multi-currency accounts and global spending to stock trading and travel perks into one app.
PayPal: The One Everyone Knows. As a true pioneer of online payments, PayPal's biggest strength is its massive global network. Almost everyone has a PayPal account, which makes it super convenient. But that convenience often comes with a much higher price tag.

So, let's dive into the details and see how they stack up on what really matters: cost, speed, and security.

The Real Cost: A Deep Dive into Fees and Exchange Rates

When you send money internationally, the most important question is: how much of my money will actually arrive? The answer comes down to two things: the transfer fee and the exchange rate.

A low fee can look great, but a bad exchange rate can cost you a lot more. This is why it matters to look at the total cost.

The Three Hidden Layers of Cost

To really compare these services, you need to understand the three ways they charge you.

1. The Upfront Fee

This is the fee you see right away. It’s usually a small fixed amount or a percentage of your transfer.

Wise has a variable fee that starts as low as 0.33%. It changes based on the currency and how you pay, but the global average is around 0.58%. The best part? You always see the full fee before you hit send.
Revolut uses a subscription model. If you’re on the free "Standard" plan, you might pay fees for international transfers. If you upgrade to a paid plan like "Premium" or "Metal," these fees are often lower or disappear completely. Some transfers can have a fee of up to 5% or a fixed fee of $10.00.
PayPal has a pretty complex fee structure. For personal international payments, the fee is 5%, but it’s capped at $4.99. For freelancers getting paid for work, the fees are much higher and can be a mix of different charges that add up quickly.

2. The Exchange Rate Markup (The Real Hidden Cost)

This is where most people lose money without even realizing it. It’s the difference between the real exchange rate and the rate the service gives you.

What’s the Mid-Market Rate? To get this, you need to know about the mid-market rate. This is the real exchange rate you see on Google or Reuters. It’s the midpoint between what buyers and sellers are paying for a currency. Any rate that isn't the mid-market rate has a hidden markup.
Wise Is All About Transparency. Wise’s whole business is built on giving you the real mid-market rate with no markup. They make money from their small, upfront transfer fee, and that’s it. This makes it super clear what you're actually paying.
Revolut’s Rate Depends on the Day. Revolut gives you a rate that’s close to the mid-market rate, but there are some catches. On the free plan, you can exchange up to $1,000 a month on weekdays without a markup. After that, you pay a 0.5% fee. But here's the big one: Revolut adds a 1.0% markup on all exchanges done on the weekend. This is because the currency markets are closed.
PayPal’s Rate Is the Least Clear. PayPal adds a big currency conversion spread to the wholesale rate it gets from its bank. For most payments, this spread is a whopping 4.00%. This isn't listed as a fee; it's just baked into the poor exchange rate you get. When you add it all up, a PayPal transfer can easily cost you 7-8% of your money.

3. Other Fees to Watch Out For

Sometimes, there are other small fees. For example, Wise charges a small fixed fee to receive a USD wire transfer. And if you send money with Revolut using the SWIFT network, other banks in the middle might take a cut before the money arrives.

Cost Comparison in Real Life

Let's look at what this means with some real-world examples. Here’s a table showing how much it would cost to send money from the US.

Table 1: International Transfer Cost Simulation (2025 Forecast)

Scenario A: Sending $1,000 USD to receive EUR	Wise	Revolut (Standard Plan, Weekday)	Revolut (Standard Plan, Weekend)	PayPal (Personal Payment)
Amount Sent	$1,000.00	$1,000.00	$1,000.00	$1,000.00
Mid-Market Rate (Benchmark)
Exchange Rate Offered
Upfront Transfer Fee	$5.80	$0.00	$0.00	$4.99
Hidden FX Markup Cost³	$0.00	$0.00	$10.00	$40.00
Total Cost (Fee + Markup)	$5.80	$0.00	$10.00	$44.99
Final Amount Received	€914.66	€920.00	€910.80	€879.05
Scenario B: Sending $5,000 USD to receive GBP	Wise	Revolut (Standard Plan, Weekday)⁴	Revolut (Standard Plan, Weekend)⁴	PayPal (Personal Payment)
Amount Sent	$5,000.00	$5,000.00	$5,000.00	$5,000.00
Mid-Market Rate (Benchmark)
Exchange Rate Offered
Upfront Transfer Fee	$29.00	$0.00	$0.00	$4.99
Hidden FX Markup Cost³	$0.00	$20.00	$70.00	$156.00
Total Cost (Fee + Markup)	$29.00	$20.00	$70.00	$160.99
Final Amount Received	£3,877.38	£3,880.50	£3,842.00	£3,739.01

Benchmark mid-market rates are illustrative for 2025. Actual rates fluctuate constantly.

Fees are based on representative data for a bank transfer (ACH) funding method. Wise fees are variable, with a global average of 0.58% in 2025.7 PayPal's international personal transfer fee is capped at $4.99.12 Revolut has no transfer fee for this scenario but may for others.

Hidden FX Markup Cost is calculated as (Amount Sent) x (Mid-Market Rate - Offered Rate). Revolut's weekend markup is 1.0%. PayPal's markup is assumed at 4.0%.

Revolut Standard plan has a $1,000 monthly fee-free exchange limit. A 0.5% fee is applied to the $4,000 exceeding this limit on the weekday transfer. The weekend transfer includes the 1.0% weekend markup plus the 0.5% fair usage fee on the amount over the limit.

As you can see, the numbers speak for themselves. For a small transfer on a weekday, Revolut can be the cheapest. But for larger amounts or weekend transfers, the costs add up. PayPal is almost always the most expensive by a long shot.

Wise consistently comes out as the cheapest and most transparent option, especially for bigger transfers.

How Fast Does Your Money Arrive?

After cost, speed is everything. Freelancers need to get paid on time, and travelers need access to their money without waiting days.

Are "Instant" Transfers Really Instant?

Here’s the deal with transfer speeds:

Wise: Wise is incredibly fast. Over 64% of its transfers are instant (under 20 seconds), and 95% arrive within 24 hours. They do this by having their own network of local bank accounts, which avoids the slow international banking system. The final speed can still depend on things like how you pay and security checks.
Revolut: Speed with Revolut really depends. If you’re sending money to another Revolut user, it’s instant. But sending to an external bank account can take anywhere from a few seconds (in Europe) to 3-5 business days for standard international transfers.
PayPal: Just like Revolut, sending money to another PayPal account is instant. If you’re sending to a bank account through their Xoom service, it can take anywhere from a few minutes to a few days, depending on the country.

The key takeaway is that "instant" usually means the money is moving within the same company's system. Once it has to go to an outside bank, things can slow down.

The Verdict on Speed

Fastest for sending to a friend on the same app: It's a tie between Revolut and PayPal.
Fastest for sending to a bank account: Wise usually has the edge here because of its smart network. But Revolut can be just as fast in certain regions like Europe. Both are way faster than a traditional bank wire.

Security and Trust: Is Your Money Safe?

When you’re sending money across the world, you need to know it’s in safe hands. All three platforms take security seriously, but they do it in different ways.

How Your Money Is Protected

It's important to know that services like Wise and Revolut aren't technically banks in most places. They are Electronic Money Institutions (EMIs).

This means they use a process called safeguarding. They have to keep all customer money separate from their own company funds, usually in accounts at big, reputable banks. So, if the company were to go out of business, your money is protected and would be returned to you. This is different from government deposit insurance (like FDIC in the US), which protects your money if a bank fails.

Wise offers an extra layer of protection for US customers. Your USD balance can be held in partner banks that are FDIC insured, giving you bank-level protection up to $250,000.
PayPal is a licensed money transmitter and has been around for a long time, so it's heavily regulated worldwide. Its reputation and size provide a strong sense of trust.
Revolut uses advanced AI and machine learning to flag suspicious activity and lets you control your security in the app, like freezing your card or creating single-use virtual cards for online shopping.
PayPal has its famous Buyer Protection program. If you buy something and it doesn’t arrive or isn’t as described, PayPal can help you get your money back. This is a huge plus for online shopping.

The Security Double-Edged Sword

Sometimes, tight security can cause problems. Revolut is known for its aggressive fraud detection systems, which is great for safety. However, many users have reported that these systems can be too aggressive, leading to accounts being frozen suddenly and without warning.

This is a real risk for a freelancer waiting on a payment or a traveler who needs access to their funds. It's something to keep in mind.

The Best Toolkit for Freelancers

For freelancers, a payment service is more than just a way to move money—it's part of your business. You need something that makes it easy to get paid, handle invoices, and do your accounting.

Getting Paid Like a Local

This is a huge deal for freelancers. If you can give a client in another country local bank details, it makes it much easier and cheaper for them to pay you.

Wise: This is where Wise really shines. A Wise Business account gives you local bank details for over 23 major currencies (like USD, EUR, GBP). This means a client in the US can pay you like a local, and the money lands in your Wise account with no receiving fees.
Revolut: Revolut also offers local account details, but its network isn't as big as Wise's.
PayPal: With PayPal, clients pay your email address, which can feel less professional. More importantly, the fees for receiving business payments are very high, often over 4.5% for international clients.

Invoicing and Accounting

Wise and Revolut both have great invoicing tools built-in and connect smoothly with accounting software like Xero and QuickBooks. This can save you hours of admin work.
PayPal has a very easy-to-use invoicing system, but again, the high fees for receiving money are a major downside for freelancers.

Table 2: Freelancer Feature Scorecard (2025)

Feature	Wise (Business)	Revolut (Business/Pro)	PayPal (Business)
Local Receiving Accounts	Excellent (23+ currencies, free local details)	Good (Local details available, less extensive than Wise)	Poor (Email-based, no local bank details)
Built-in Invoicing Tools	Good (Free generator, tracking, multiple payment options)	Excellent (Customizable, recurring, automated reminders, multiple payment options)	Excellent (Mature platform, easy client payment, but high fees)
Accounting Integrations (Xero, QB)	Excellent (Deep integration, auto-sync bank feeds)	Excellent (Deep integration, auto-sync bank feeds, extensive app marketplace)	Fair (Integrates, but often requires more manual reconciliation)
Typical Fee to Receive $1,000 Payment¹	$0.00 (via local transfer) / $6.11 (via US wire)	Variable (Payment processing fees apply, e.g., 1% + £0.20 to 2.8% + £0.20)	~$45.39 (4.49% + $0.49 fixed fee)

Fees are illustrative and subject to change. PayPal fee is for an international commercial transaction. Revolut fees are for accepting an online payment via invoice.

For most freelancers, Wise is the clear winner. The ability to receive money for free using local bank details is a game-changer.

The Best Card for Travelers

For travelers, a good payment card is essential. You need to be able to spend in local currency and withdraw cash without getting hit by huge fees.

Spending Abroad

Wise Card: The Wise card is made for travel. You can hold over 40 currencies in your account. If you have the local currency, spending is free. If you don't, it automatically converts your money at the real mid-market rate with just a small conversion fee (starting from 0.33%).
Revolut Card: The Revolut card is also great for spending abroad, but remember that 1.0% weekend markup. If you do a lot of your travel spending on Saturdays and Sundays, it can get more expensive.
PayPal Card: The PayPal debit card is not designed for international travel. It charges a high 2.5% foreign transaction fee on every purchase you make abroad.

Getting Cash from ATMs

Wise: You get 2 free ATM withdrawals per month, up to a total of $100. After that, there's a small fee.
Revolut: The free ATM withdrawal limit depends on your plan. The free plan has a low limit (around $200/month), but paid plans offer much more.
PayPal: This is the most expensive option. You’ll pay a $2.50 fee plus the 2.5% foreign transaction fee for every withdrawal.

Table 3: Traveler's Debit Card Cost Comparison (2025)

Feature	Wise	Revolut (Standard Plan)	PayPal
Card Issuance Fee	$9 USD	Varies (often free, delivery fees may apply)	$0
Foreign Transaction Fee	$0 (low conversion fee from 0.33% if currency not held)	$0 (subject to exchange limits and weekend markups)	2.5%
Weekend FX Markup	None	1.0%	None (markup is constant)
Monthly Free ATM Limit	2 withdrawals up to $100 total	~$200 (varies by region)	$0
Fee After Limit	$1.50 + 2% over $100	2%	$2.50 + 2.5% FTF

For travelers, it's a close call. The Wise card is best for low costs and simplicity. But if you travel a lot and want perks like travel insurance, a paid Revolut plan can be a great deal. The PayPal card isn't a good choice for travel.

The Final Verdict: Which One Is Right for You?

So, after all that, who wins the battle of Wise vs. Revolut vs. PayPal? The truth is, there’s no single best answer for everyone. It all depends on what you need.

At-a-Glance Summary

Cheapest Overall: Wise. Hands down, its transparency and low fees make it the winner on cost.
Fastest: Revolut and PayPal are instant for sending money to other users on the same platform. For bank transfers, Wise is often the quickest.
Best for Freelancers: Wise. Getting paid with local bank details for free is an unbeatable feature.
Best for Travelers: A tie between Wise and Revolut. Wise is cheaper and simpler. Revolut is great if you want an all-in-one app with travel perks and are willing to pay for a subscription.

Who Should Use Which Service?

Choose Wise if...

...your number one goal is to save money. You’re a freelancer invoicing clients overseas or a traveler who wants the best exchange rate every time. You prefer a simple, no-fuss service that just works.

Choose Revolut if...

...you want one app to manage your entire financial life. You’re a tech-savvy traveler who can benefit from paid features like travel insurance and higher ATM limits, and you don't mind learning the rules to avoid extra fees.

Choose PayPal if...

...you need something that everyone accepts. You’re buying from online stores where Buyer Protection gives you peace of mind, or you’re dealing with people who only use PayPal. You’re willing to pay more for convenience and familiarity.

A Quick Disclaimer

This information is based on data from early 2025. The world of fintech changes fast, so fees and features can too. Before making any decisions, please double-check the latest prices and terms on the official websites for Wise, Revolut, and PayPal.