PayPal vs Airwallex: Compare benefits and fees for Australia

Key takeaways

• Transaction fees: Airwallex offers 0% transaction fees for local payments in 120+ countries; PayPal charges fees for all commercial transactions including domestic and international

• Currency conversion: Airwallex charges 0.5–1% above interbank rates with like-for-like settlement in 14+ currencies; PayPal charges currency conversion fees on all cross-currency transactions

• Payout speed: Approximately 95% of Airwallex transactions settle within hours or the same day, with approximately 57% instant; PayPal takes 3–5 business days (up to 21 days)

If you run an eCommerce business, you'll need an online payment gateway to accept credit and debit card payments from customers. Both Paypal and Airwallex offer payment gateways that plug into your eCommerce store, but which solution is right for your business?

Read on to find out how Airwallex compares against Paypal on price, features and benefits. 

How does PayPal work?

PayPal is a platform that allows customers to buy online without giving their sensitive financial information to sellers.

Today, PayPal operates in most countries around the world. It has 426 million active users and total payment volume reached $1.53 trillion in Q4 of 2023⁵.

PayPal has developed additional features to help customers and businesses manage their money, including business accounts, working capital advances, and business debit cards. The platform is widely recognised for its ease of use and brand trust, making it popular among small businesses, freelancers, and consumers.

How does Airwallex work?

Airwallex is a one-stop solution for business financial operations. Airwallex offers a comprehensive suite of tools which support businesses, including payment gateways that help businesses optimise their customer experience and manage global finances.

The Airwallex online payment gateway integrates seamlessly with eCommerce platforms, offering highly competitive processing fees and the ability to eliminate unnecessary FX conversion fees through like-for-like settlement. 

Airwallex empowers users to accept payments from customers in 180+ countries through 160+ payment methods, including popular local options like WeChat Pay and Alipay.

Compare PayPal vs Airwallex

Use our comparison table to see how PayPal measures up against Airwallex on fees, features and benefits.

PayPal fees explained

Although it's free to open a PayPal for Business account, as soon as you start receiving or sending money you'll pay a fee. If you're moving funds across borders, PayPal's international fees can stack up very quickly.

While PayPal's fee structure is relatively straightforward for standard transactions, costs can add up quickly when moving funds across borders or processing international payments.

PayPal's payment structure varies depending on the type of transaction and where you're receiving money from. 

• Domestic transactions: 2.6% + fixed fee for Australian businesses receiving payments

• International transactions: 3.6% + fixed fee for receiving international commercial transactions

• Currency conversion: 3% above the base exchange rate for international business transactions that involve currency conversion

• Payouts: 3–5 business days standard, but can be up to 21 days

Airwallex fees explained

Airwallex fees are different because we've invested in our local payment network to make international transfers quicker and more cost-effective. We leverage local payment rails in 120+ countries, with over 90% of transactions using local rails instead of SWIFT.

For payment acceptance, Airwallex supports 160+ local payment methods and enables you to collect payments in 130+ currencies across 180+ countries. For traditional SWIFT transfers, flat fees apply.

• Business account: Starts at $29/month or $0 if you deposit at least $5,000 per month or hold a minimum balance of $10,000.  You can see all of our pricing here.

• Payment acceptance: 1.65% + $0.30 for domestic cards, 3.40% + $0.30 for international cards, and $0.30 for local payment methods plus the local payment method fee.

• FX rates: Interbank rate + 0.5% for USD, HKD, CNY, AUD, EUR, GBP, CAD, SGD, CHF, NZD, JPY, or 1.0% for all other currencies

• Corporate Cards: Multi-currency virtual and physical cards with 0% foreign transaction fees; 10 free physical cards included in the Explore plan.

Compare additional features between PayPal and Airwallex 

Payment methods and global reach

• PayPal payment methods: PayPal allows enterprises to accept card payments online and at POS, PayPal balances, buy-now-pay-later and 10+ local payment methods from 200+ countries. However, transaction fees apply to most payment types.⁴

• Airwallex payment methods: Airwallex allows you to accept payments online, including cards with up to 160+ local payment methods available in 130+ currencies with no-code payment links, low-code checkout solutions or customisable checkouts via API. 

Currency conversion and FX fees

• PayPal currency conversion: PayPal charges 3% above the base exchange rate for currency conversions, with additional transaction fees on top.⁴ For businesses regularly processing international payments, these fees can significantly impact profit margins.

• Airwallex currency conversion: Airwallex offers highly competitive FX rates at interbank + 0.5–1%, and enables like-for-like settlement in 14+ major currencies. This means businesses can receive payments in the same currency customers pay in, avoiding unnecessary conversion fees entirely.

Spend and cards

• PayPal business debit card: PayPal offers a business debit card that lets users pay with their PayPal balance in stores and online with no annual fee. However, the card is limited to spending from your PayPal balance only.

• Airwallex Corporate Cards: Airwallex multi-currency Corporate Cards can be used anywhere Visa is accepted. 10 free physical cards are included  in the Explore plan and come with an in-built expense management tool, offering superior flexibility for businesses with teams.

Expense Management

• PayPal expense features: PayPal cards have basic control features like automatic and recurring payments, but no comprehensive expense management system.

• Airwallex expense management: Airwallex helps teams track and control spending globally through spending limits, multi-layer approvals and a centralised dashboard to submit expenses and see cash flow. This is a game changer for businesses managing international operations and team spending.

Enterprise and growth

• PayPal for growing businesses: PayPal offers PayPal Working Capital, a cash advance of up to 25% of your PayPal sales over a 12 month period, which is based on your account history and other criteria. ³ However, the platform lacks comprehensive financial management tools for scaling businesses.

• Airwallex for enterprise: Airwallex is designed purely for businesses with growth ambitions. As an end-to-end financial solution, Airwallex supports ambitious companies with features including expense management, detailed reporting, accounts payable support, and dedicated account management for larger businesses.

All-in-one platform capabilities

• PayPal platform: PayPal primarily focuses on payment acceptance and basic money management. While it integrates with accounting software and offers invoicing, it lacks comprehensive financial operations tools.

• Airwallex all-in-one platform: Airwallex offers a complete financial operations platform beyond just payment acceptance. This includes:

  • Multi-currency business accounts with local account details in 60+ currencies

  • Payment gateway with 160+ local payment methods

  • International transfers to 200+ countries

  • Corporate cards with expense management

  • Yield access to earn returns on AUD or USD

  • Accounting integrations with Xero, NetSuite and QuickBooks

  • Batch payments for paying multiple suppliers

  • API capabilities for custom integrations

Why you should choose Airwallex for your eCommerce business

Airwallex and PayPal have differences in fees and additional capabilities.

Airwallex is designed purely for businesses. As an end-to-end financial solution, we support ambitious companies with a variety of features including expense management, reporting and supporting accounts payable.

PayPal is recognised across the world and it’s a great fit for ad-hoc international money transfers. But if you’re looking for an all-in-one financial partner who can help you beyond receiving and accepting payments, it may fall short. 

Plus, if you’re moving money across borders, PayPal’s high transaction fees can add up quickly.

Airwallex is an alternative payment solution designed specifically for businesses that could help you:

• Faster, more cost-effective transfers with 0% transaction fees for 120+ countries

• Save on FX fees with rates of 0.5-1% vs PayPal's 3%

• Like-for-like settlement in 14+ currencies with no forced conversions

• Fast transfers with 95% of international transfers settling same day

• Free batch payments to automate payments to multiple recipients

• Comprehensive expense management tools for team spending control

• Better support for growth with dedicated account management

• All-in-one platform for complete financial operations

For Australian eCommerce businesses and online businesses with international customers, Airwallex offers superior value through lower fees, faster transfers, and comprehensive financial services that PayPal simply cannot match.

Paypal vs Airwallex: Frequently asked questions

Why choose Airwallex over PayPal?

Choose Airwallex over PayPal if you're running an eCommerce business or online business with international operations. Airwallex leverages local payment rails in 120+ countries for faster, more cost-effective transfers (vs PayPal's 2.6–3.6% + fixed fees and slower SWIFT-based transfers), lower FX fees (0.5–1% vs 3%), like-for-like settlement to avoid currency conversion, and comprehensive expense management tools. Airwallex is designed as an all-in-one platform for growing businesses, while PayPal focuses primarily on simple payment acceptance.

What are the main differences between PayPal vs Airwallex for businesses?

The key differences are: Airwallex uses local payment rails in 120+ countries for faster, more cost-effective international transfers, with approximately 95% of transactions settling same day, while PayPal charges 3.6% + fixed fee and takes 3-5 business days, comprehensive expense management tools, and like-for-like settlement in 14+ currencies. PayPal offers point-of-sale payments and working capital advances, which Airwallex doesn't currently provide.

Which payment gateway is better for eCommerce businesses in Australia?

Airwallex is generally better for Australian eCommerce businesses, especially those with international customers. Airwallex uses local payment rails in 120+ countries for faster, more cost-effective international transfers, lower currency conversion fees, and like-for-like settlement that eliminates unnecessary FX costs. For a business processing international payments regularly, the savings can be substantial compared to PayPal's 3.6% international transaction fee plus 3% currency conversion.

How do currency conversion fees compare between PayPal and Airwallex?

PayPal charges 3% above the base exchange rate for currency conversion, plus transaction fees. Airwallex charges 0.5–1% above the interbank rate with no additional transaction fees. More importantly, Airwallex offers like-for-like settlement in 14+ major currencies, meaning you can receive and hold payments in the currency your customer paid, avoiding conversion fees entirely until you choose to convert.

Does Airwallex offer expense management like PayPal?

Yes, Airwallex offers comprehensive expense management tools including spending limits, multi-layer approvals, and a centralised dashboard for teams to submit expenses and track cash flow. PayPal only offers basic control features like automatic and recurring payments, with no dedicated expense management system. This makes Airwallex superior for businesses managing team spending.

What payment methods do PayPal and Airwallex support?

PayPal supports card payments, PayPal balances, buy-now-pay-later and 10+ local payment methods from 200+ countries. Airwallex supports cards, 160+ local payment methods across 180+ countries, no-code payment links and customisable checkouts via API. Airwallex offers significantly more local payment method options, which can improve conversion rates for international customers.

Can I use Airwallex business debit cards like PayPal cards?

Yes, Airwallex offers business debit cards that are more flexible than PayPal's offering. Airwallex Corporate Cards can be used in 10+ currencies directly or any currency supported by Visa, while PayPal cards are limited to spending from your PayPal balance only. The first five Airwallex employee cards are free and include in-built expense management tools.

Which platform is better for international transfers?

Airwallex is significantly better for international transfers. Airwallex leverages local payment rails in 120+ countries, with approximately 95% of transactions settling same day or within hours and approximately 57% settling instantly. PayPal payouts take 3–5 business days (up to 21 days in some cases) and charge 3.6% + fixed fee for international transactions. For businesses making regular international payments, Airwallex provides faster, cheaper transfers.

Does Airwallex integrate with accounting software?

Yes, Airwallex integrates with major accounting platforms including Xero, NetSuite and QuickBooks. PayPal also offers accounting integrations. Both platforms support seamless reconciliation of transactions with your accounting software.

Sources

1. https://www.paypal.com/au/enterprise/payment-processing

2. https://www.paypal.com/au/webapps/mpp/merchant-fees

3. https://www.paypal.com/au/business/financial-services/working-capital

4. https://www.paypal.com/au/business/paypal-business-fees

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

The information in this article is based on our own online research. Airwallex was 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 annually. If you would like to request an update, feel free to contact us at [[email protected]]. This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.