PayPal Business Account review for Singapore SMEs (2025): Is this business account right for you?

Key takeaways:

• PayPal is a familiar brand that offers easy setup for its business account, but its high international transfer fees and foreign exchange (FX) fees can quickly erode margins for SMEs in Singapore.

• PayPal’s reliance on SWIFT means slower cross-border transfers and less predictable costs, compared to platforms like Airwallex that use local payment rails.

• Airwallex outperforms PayPal with faster and lower-cost transfers to more countries and regions. It also offers broader payment acceptance and financial solutions not offered by PayPal, including multi-currency accounts, corporate cards, expense management tools, and more.

Running a business means you’re always under pressure to keep costs low and cash flow steady. Delayed payments, hidden fees, and high transfer costs can quickly eat into your margins.

PayPal is a familiar brand known for its ease of setup, but it also comes with trade-offs like high foreign exchange (FX) fees and slow transfers. In comparison, Airwallex offers faster, lower-cost global transfers by using local payment rails instead of SWIFT. 

Read on to find out more about the PayPal Business Account and how it compares with Airwallex.

What is the PayPal Business Account?

PayPal's business account lets small and medium-sized enterprises (SMEs) send and receive payments, issue invoices, and manage funds online. It connects with eCommerce platforms and basic invoicing tools, making it convenient for small merchants. 

Is the PayPal Business Account right for your business?

PayPal is a well-known brand, so its business account might feel like the natural choice when you're just getting started. But before you commit, make sure you read up on its features and fees.

Pros:

• Global brand recognition

• Fast online setup, with accounts often live within minutes of verification

• Basic invoicing and payment tools

Cons:

• High international fees 

• Relies heavily on SWIFT for cross-border transfers

• Limited support for local payment methods in Southeast Asia

With PayPal, fees can add up quickly. You’ll pay a fee on each transaction, an FX markup on each currency conversion, and extra charges when transfers go through SWIFT. 

How does PayPal compare with Airwallex?

If you’re only focusing on the local market, PayPal might be enough. But if you’re planning to expand across borders, those high fees and delays can hold you back. Airwallex solves this problem with faster and cheaper transfers using local rails. You can also access interbank rates when you need to convert currencies, saving up to 80% on FX fees. 

Airwallex also offers broader payment acceptance than PayPal. You can reach more customers worldwide and boost conversions by offering 160+ local payment methods at checkout, surpassing PayPal’s 10+.⁵ With the Airwallex Business Account, you can settle payments like-for-like into a multi-currency wallet, skipping unnecessary currency conversions and saving on fees.

Note: The information in this table has been reviewed to be accurate as of 10 November, 2025.

What are the key features of the PayPal Business Account?

PayPal offers a business account tailored to SMEs in Singapore that need to accept and send payments. It is widely used globally, with core features such as: 

Domestic and international payment acceptance

Merchants can accept payments from local and overseas customers through PayPal, but costs tend to be high due to service fees and FX markups on cross-border payments.

Basic invoicing tools

The platform offers basic invoicing tools that allow you to request payments from customers and contractors. These functions cover essential payment needs, but remain limited compared to full-featured financial platforms.

eCommerce integrations

PayPal connects with platforms such as Shopify, WooCommerce, and Magento, making it easy to add PayPal as a checkout option on these platforms. However, PayPal’s coverage for local payment methods in Southeast Asia, such as GrabPay, remains limited.

Fraud protection and resolution tools

PayPal has systems and tools to detect suspicious activity and resolve customer disputes, but these safeguards can delay access to funds when accounts are flagged.

Mobile app and account management

Business owners can use PayPal’s mobile app to track activity and manage payments. While the PayPal app works well for smaller businesses, growing companies will need more advanced reporting and control tools to keep pace as they scale.

What are the PayPal Business Account’s pricing and fees?

While setup is free, PayPal’s payment, conversion, and withdrawal fees can add up quickly.

Note: The information in this table has been reviewed to be accurate as of 10 November, 2025.

Need a more cost-effective structure? Explore Airwallex's pricing & fees 

Compared to PayPal’s higher FX fees and dependence on SWIFT, Airwallex offers a more cost-effective structure for international transfers. By using local payment rails such as PayNow instead of SWIFT, transfers are faster, more predictable, and often free.

Note: The information in this table has been reviewed to be accurate as of 10 November, 2025.

How to set up the PayPal Business Account

Setting up the PayPal Business Account in Singapore is done fully online and requires several steps and documents.

1. Sign up via the PayPal Singapore website or app.

2. Create your profile by entering your name, email, and password. 

3. Provide your business details: registered business name, UEN number, business type, and contact information.

4. Confirm your email via the verification link from PayPal.

5. Link your Singapore bank account for withdrawals (and optionally add a card for payment/verification).

6. Upload required documents, such as ACRA registration, ID of directors/beneficial owners, and proof of address.

7. Set your payment preferences, checkout options, and primary currency.

Once PayPal approves your account, you can send invoices, receive payments, and manage activities through the dashboard or app.

Need a global-ready option? Open a business account with Airwallex 

Like the PayPal Business Account, you can sign up for the Airwallex Business Account fully online, with the process taking only a few minutes. The difference is that with Airwallex, you immediately unlock multi-currency accounts, competitive FX rates, high-speed global transfers, and more. 

Want to see it in action? Watch our quick demo.

A strong alternative to PayPal: Airwallex

While PayPal supports basic online payment acceptance and cross-border transfers, its fee structure and reliance on SWIFT can create friction for businesses looking to scale globally.

As an alternative to PayPal, Airwallex combines faster global transfers, more transparent FX, and broader payment acceptance on one platform to support your business as it scales. 

Get paid in more ways

Airwallex surpasses PayPal with broader payment acceptance, supporting 160+ local payment methods, compared to PayPal’s 10+.⁵ Our platform also supports more local payment methods in Southeast Asia than PayPal does, giving customers in the region more ways to pay and boosting your conversion rates. 

Save more with like-for-like settlement

With Airwallex, you can settle payments like-for-like in 20+ major currencies into a multi-currency wallet, without any forced FX conversions and fees – unlike PayPal, which forces you to convert funds to the default currency in your held balance.

Do more on one platform

On top of global transfers, FX, and payment processing, Airwallex offers multi-currency accounts, corporate cards, expense management tools, high-rate saver accounts, and more.

Scale your business with an all-in-one financial platform

Both PayPal and Airwallex offer ways to collect payments and send money across borders. But with Airwallex, you get a platform built for growth – one that helps you move funds faster, reduce costs, and offer more ways for your customers to pay. 

As your business expands, transaction fees, FX markups, and slow transfers can eat into your margins. Airwallex helps you cut these costs. Save on fees and make faster transfers using local rails like PayNow instead of SWIFT. And when you need to convert funds, access interbank rates and save up to 80% on FX fees.

That’s not all. Airwallex goes further to give SMEs the tools to scale globally without being weighed down by hidden costs. Accept payments via 160+ local payment methods, including popular options in Southeast Asia like GrabPay and DOKU Wallet. Settle funds like-for-like into your multi-currency wallet, without forced FX conversions or hidden fees.

With our multi-currency corporate cards and advanced expense management tools, you can manage your global transfers, payments, and spend – all in one platform.

Frequently asked questions (FAQs)

Is PayPal safe?

Yes, PayPal is generally safe to use in Singapore. It employs data encryption, real-time transaction monitoring, and buyer and seller protection policies to prevent fraud and minimise losses from eligible transactions. PayPal is licensed by the Monetary Authority of Singapore (MAS) as a Major Payment Institution, and customer funds are safeguarded in segregated accounts with banks and other safeguarding institutions in Singapore.

Is PayPal licensed in Singapore?

Yes, PayPal Pte. Ltd. is regulated as a Major Payment Institution by the Monetary Authority of Singapore (MAS) under the Payment Services Act.

What is the difference between a personal PayPal account and a PayPal Business Account?

A personal PayPal account is meant for individuals making online purchases or sending money to friends. A PayPal Business Account is designed for SMEs, offering invoicing, payment acceptance, and account management tools. It comes with higher fees, especially for international payments.

Sources:

1. https://developer.paypal.com/docs/payouts/standard/ 

2. https://www.paypal.com/sg/brc/article/auto-transfers 

3. https://www.paypal.com/sg/business/paypal-business-fees

4. https://www.paypal.com/sg/business/getting-started

5. https://www.paypal.com/sg/enterprise/payment-methods 

6. https://www.paypal.com/sg/legalhub/paypal/useragreement-full#send-payment

7. https://www.paypal.com/sg/business/accept-payments/checkout

8. https://www.paypal.com/us/webapps/mpp/country-worldwide

All comparisons and information reflect Airwallex’s own research using public documentation as of 10 November, 2025, and have not been independently validated.

Product features, pricing and other details are subject to change. Airwallex does not guarantee the continued accuracy of this information and is not responsible for any inaccuracies that may arise from such changes. This publication is not intended to be relied on for the purpose of making a decision about a financial product.

If you would like to request an update of the content in this publication, feel free to contact us at [email protected]. 

Airwallex (Singapore) Pte. Ltd. is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore. Airwallex Capital (Singapore) Pte. Ltd. is licensed as a Capital Markets Services License holder under the Securities and Futures Act 2001 by the Monetary Authority of Singapore (License No. CMS101830). The MAS has not reviewed this information. For more details, you can refer to the MAS website here.