Airwallex Vs PayPal: Which platform is better for New Zealand businesses?

Key takeaways

• PayPal is a digital wallet and payment processor that works well for businesses wanting to accept payments online; Airwallex is an all-in-one financial platform that is built for cross-border operations, with like-for-like settlement, 160+ local payment methods, and payment collection in 130+ currencies.

• The fee gap between the two platforms is most visible on currency conversion and international transfers, where PayPal's margins add up quickly across high transaction volumes.

• Beyond payment acceptance, Airwallex brings Global Accounts, Corporate Cards, and Expense Management into one platform – tools that PayPal doesn't offer – so you're not stitching together multiple providers as your business grows.

Both PayPal and Airwallex let businesses accept payments online, but they suit different businesses. PayPal is a household name at checkout – trusted by consumers, easy to set up, and widely recognised. Airwallex is a global financial platform designed for businesses that move money across borders regularly and need more than just a payment button.

If you're weighing up the two, the real question isn't just which one is cheaper, it's which one fits how your business actually operates. This article breaks down fees, features, and global reach so you can make that call clearly.

How does PayPal work?

PayPal is a digital wallet and payment processor that lets businesses accept card payments and PayPal wallet payments online. It's been around since 1998 and is particularly well known for consumer trust and brand recognition at checkout.

It works for businesses that are primarily domestic, have straightforward payment needs, or want to offer PayPal as a checkout option because their customers already use it. Where it starts to show its limits is when you need to manage multi-currency balances, pay international suppliers, or reduce the cost of cross-border transactions at scale.

What is Airwallex?

Airwallex is a global financial platform built for businesses that operate across borders. It brings together payment acceptance, multi-currency accounts, foreign exchange (FX), Corporate Cards, and Expense Management in one place.

Rather than just processing payments, Airwallex handles the full financial workflow: collecting money from customers in their local currency, holding it, converting it when needed, and paying it out to suppliers or staff anywhere in the world. It owns its own payment rails and holds 80+ licences and permits globally – it's infrastructure, not just a layer on top of someone else's system.

Airwallex vs PayPal at a glance

Here's a side-by-side snapshot of both platforms. Fees are just one part of the picture, the sections below go deeper on each area.

How do Airwallex and PayPal fees compare?

Fees are where the two platforms diverge, especially once currency conversion and international transfers come into play. Costs are important to help you build revenue for your eCommerce business, so here's how each fee type stacks up.

Card processing fees

Both platforms charge a percentage of the transaction plus a fixed fee per payment. The gap is modest for domestic transactions but widens for international card payments.

Exchange rates and FX fees

The FX markup is the difference between the interbank rate and the rate a platform charges you. The interbank rate is the rate banks use when trading currencies with each other — think of it as the "true" exchange rate before anyone takes a cut. The closer a platform's rate is to the interbank rate, the less you lose on every conversion.

Airwallex charges 0.5%–1% above the interbank rate. PayPal typically adds a 3%–4% currency conversion fee on top of its base exchange rate, so the effective rate you receive is usually 3–4% away from the mid-market (interbank) rate, and the real cost of converting through PayPal can be significantly higher than it first appears.

The best part? Airwallex offers like-for-like settlement. This means you can receive and hold funds in the same currency your customer paid in, without converting at all. If a UK business receives US dollars from American customers, those dollars sit in a USD-denominated account. When it's time to pay a US supplier, the business pays directly from that balance — no conversion, no markup. While PayPal lets you hold multiple currencies in your PayPal account, if you need to convert them, you will be charged a currency conversion fee each time.

How do Airwallex and PayPal compare on features?

Cost is only part of the decision. For businesses scaling internationally, the question is also what each platform lets you do – and where the gaps start to show.

Which payment methods and markets do PayPal and Airwallex support?

The payment methods you offer at checkout directly affect whether customers complete a purchase. A customer in Germany might prefer to pay via bank transfer; one in China via Alipay or WeChat Pay; one in Sweden via Klarna. If your checkout doesn't support their preferred method, they're more likely to abandon it.

Airwallex supports 160+ local and global payment methods across 180+ countries, including:

• Cards and digital wallets: Visa, Mastercard, American Express, Apple Pay, Google Pay, and UnionPay

• Local methods: Alipay, WeChat Pay, iDEAL, and buy now, pay later (BNPL) options like Klarna

• eCommerce integrations: Payment Plugins for Shopify, WooCommerce, Magento, and BigCommerce, plus Payment Links for businesses without a traditional online store

PayPal supports cards, digital wallets and a limited range of local payment methods, with its own wallet being the primary draw for customers.

Which multi-currency account works better for international business?

A multi-currency account holds balances in more than one currency without forcing you to convert every time money comes in. Think of it like having a separate wallet for each currency you deal in – you put euros in the euro wallet, dollars in the dollar wallet, and only exchange when you actually need to.

Airwallex's Global Accounts go a step further: they give you local bank details in 20+ currencies so your customers can pay you as if you were a local business. A US customer pays into your USD account details and a European customer pays into your EUR account details. PayPal lets you hold balances in a limited number of currencies, but it doesn't provide local bank account details in the same way – which means international customers are still paying cross-border, and you may still face conversion fees on receipt.

Which platform has better cards and expense management?

If you have a team spending on behalf of the business – on travel, software subscriptions, or supplier payments – how you manage that spend matters.

Airwallex's Corporate Cards (available as physical and virtual cards) let you:

• Set spending limits per card: So a team member can only spend up to a set amount before the card declines

• Restrict by merchant category: If a card is set up for software purchases only, it won't work at a restaurant

• Run multi-layer approval workflows: Larger purchases can require sign-off before the transaction goes through

PayPal doesn't offer a comparable business card product or expense management tool. Airwallex's Expense Management dashboard brings all team spending into one view, with receipt capture and approval workflows built in – so your finance team isn't chasing receipts at month end.

Frequently asked questions

Is Airwallex cheaper than PayPal for international card payments?

Yes — Airwallex charges 3.60% + NZ$0.30 for international card transactions, compared to PayPal's 4.40% + NZ$0.45, and Airwallex's FX margin of 0.5%–1% above the interbank rate is significantly lower than PayPal's 3%–4% margin.

Does Airwallex support PayPal as a payment method at checkout?

Yes – businesses using Airwallex can offer PayPal as one of the checkout payment methods, so customers who prefer paying via PayPal can still do so.

Can you hold multiple currencies in a PayPal business account?

PayPal lets you hold balances in a limited number of currencies, but it doesn't provide local bank account details in those currencies. This means international customers are still paying cross-border, and conversion fees may apply on receipt.

How does Airwallex help you avoid currency conversion fees on international payments?

Airwallex's like-for-like settlement lets you receive and hold funds in the same currency your customer paid in, so you're not converting on every transaction. You only convert when you actually need to.

Does PayPal offer business expense management or corporate cards?

No, PayPal doesn't offer a business card product or expense management tool comparable to Airwallex's Corporate Cards and Expense Management dashboard.

Can Airwallex be trusted for cross-border payments?

Yes – Airwallex holds 80 licences and permits globally, is PCI DSS Level 1 certified, and is SOC 1 and SOC 2 compliant, with customer funds safeguarded with leading global financial institutions.

Can you use PayPal and Airwallex at the same time?

Yes – many businesses offer PayPal as a checkout option through Airwallex while using Airwallex's accounts and FX tools for everything else, so there's no need to remove PayPal entirely.

Sources

• https://www.paypal.com/nz/business/paypal-business-fees 

• https://www.paypal.com/nz/business

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]]. Airwallex (New Zealand) Limited is registered with the New Zealand Financial Service Provider Register (FSP No. 1001602) to provide a range of financial services in New Zealand.