PayPal vs Airwallex: Business Account Comparison for 2026

3 key takeaways

Small businesses lose up to $3.1 trillion annually to inefficient payment processes^¹, making the choice between payment platforms critical for your bottom line.

PayPal works best for businesses processing primarily domestic payments under $5,000 monthly, while Airwallex excels for companies with international operations, offering local bank details in 20+ currencies and FX rates 0.5-1% above the interbank rate versus PayPal's 3.5-4% markup.

When comparing PayPal vs Airwallex head-to-head, businesses handling cross-border transactions save an average of 3-4% per transaction by switching to Airwallex's multi-currency account, with same-day settlement versus PayPal's 1-3 business day wait.

The bottom line about PayPal vs Airwallex

When choosing between PayPal and Airwallex for your business account, the decision comes down to your transaction patterns and growth trajectory.

PayPal suits businesses that process mainly simple domestic payments, require immediate brand recognition at checkout, and handle relatively simple financial operations. For instance, if you're a solopreneur earning under $5,000 monthly from US-based clients who specifically request PayPal, the platform's familiar interface justifies its higher fees.

Airwallex is built both for businesses operating across borders and domestic businesses who want to pay less in fees and earn more in card cash back. If you're paying international suppliers, accepting payments from multiple countries, or planning global expansion, Airwallex business account delivers what you need to work globally without juggling multiple banking relationships. For example, a software company with clients in Europe and Asia can collect euros and Singapore dollars directly into local accounts, then convert only when exchange rates favor them.

PayPal is a better choice if you only are making simple domestic transactions and don’t mind paying more in fees while Airwallex is a superior option if you want global sophistication and better fee economics. Read on for a detailed breakdown of how these platforms compare across every feature that matters to your business.

PayPal vs Airwallex comparison

This comparison table shows exactly how PayPal and Airwallex differ on the features that affect your daily operations and bottom line.

How to evaluate PayPal vs Airwallex

Let's examine where PayPal and Airwallex truly differ and where these differences significantly affect your costs when moving money internationally or protecting your margins.

PayPal vs Airwallex: cards

PayPal offers a Business Debit Mastercard with 1% cashback on eligible purchases. However, you need to maintain specific transaction volumes to qualify for this rate. The card links to your PayPal balance, providing basic spending visibility, but PayPal lacks advanced spend management features like approval workflows or automatic expense categorization.

Airwallex Corporate Cards, available in both physical and virtual formats, deliver up to 1.5% cashback on local USD spend. You can issue cards instantly to team members with custom spending limits and merchant-category restrictions. For instance, your marketing team receives cards that only work on advertising platforms, while your operations team gets cards designated for supplier payments. Airwallex's AI automatically extracts receipt data and categorizes spending, saving your finance team hours each month.

PayPal vs Airwallex: integration and speed

PayPal integrates with major eCommerce platforms like Shopify and WooCommerce. Funds from PayPal transactions reach your bank account within 1-3 business days. You can pay 1.5% for instant transfer to your bank, but this fee accumulates rapidly with regular use.

Airwallex connects with accounting software like Xero, QuickBooks, and NetSuite, plus eCommerce platforms. We also provide comprehensive APIs for custom integrations. Most transfers arrive the same day, with approximately 50% completing instantly at no additional cost.

The speed difference matters significantly for cash flow management. For example, if a European customer pays you at 9am London time, those funds reach your account by early afternoon US time. You can pay suppliers or manage inventory immediately instead of waiting multiple days.

PayPal vs Airwallex: international capability and FX

The most significant difference between PayPal and Airwallex is the international capabilities offered by Airwallex vs PayPal, including multi-currency support, transfer fees, and access to local rails to reduce costs. cu

Multi-currency support

PayPal allows you to hold balances in 25 currencies. When you convert between currencies, PayPal applies its exchange rate markup. When customers pay in their local currency, PayPal automatically converts it to your primary currency, unless you have previously configured that specific currency.

Airwallex provides true multi-currency accounts with local bank details in 20+ currencies. You can hold, convert, and transfer multiple currencies at rates within 0.5-1% of the interbank rate. For instance, if you're a US business selling to customers in Australia, the UK, and Singapore, you collect Australian dollars, US dollars, British pounds, and Singapore dollars directly into local accounts, then convert only when exchange rates work in your favor, eliminating forced conversion fees entirely. This is what we call a multi-currency account: a critical tool for businesses operating internationally.

International transfer fees

PayPal charges up to 5% plus fixed fees for international transfers, with costs varying by destination and currency. These fees erode margins quickly when you're regularly paying overseas suppliers.

Airwallex operates on local payment rails in 120+ countries, with more than 90% of transactions bypassing SWIFT fees entirely. You pay $0 for transfers on local rails and just a small FX margin above the interbank rate. For example, paying a UK supplier in pounds costs only the FX conversion at our 0.5-1% markup, versus PayPal's 5% total cost.

Local bank details

PayPal provides limited options for receiving money locally, primarily in major markets. International customers often pay higher fees or face mandatory currency conversion when paying you.

Airwallex delivers local bank details in 20+ currencies. Customers pay you as if you're a domestic business in their country. For instance, a German customer paying your US business can transfer euros to your German IBAN, avoiding international transfer fees on their end. Your customers experience smoother payments, and more transactions complete successfully. When evaluating the best business bank account for international operations, this local receiving capability proves decisive.

PayPal vs Airwallex: fee and hidden costs

Looking beyond headline rates reveals what each platform actually costs for a typical business. PayPal and Airwallex both boast low fees, but learn the fees that may apply depending on your usage and plan choice. Hidden costs are also covered to ensure you choose the right provider and know exactly which features are offered through each account.

Monthly maintenance or minimum balance fees

Both PayPal and Airwallex charge $0 in monthly maintenance fees for US businesses. Neither platform requires minimum balances or deposits to maintain your account. This makes both platforms accessible whether you're just starting out or running established operations. When choosing a business bank account, the absence of monthly fees shouldn't be your only consideration; transaction costs matter far more.

Express fees and outgoing domestic wires

PayPal charges 1.5% for instant transfers to your bank account. Standard transfers take 1-3 business days at no charge. If you need regular access to your funds, these express fees accumulate significantly. For example, transferring $10,000 weekly costs you $150 in express fees, or $7,800 annually.

Airwallex doesn't charge express fees: our standard settlement already delivers speed. Most transfers arrive the same day, and half complete instantly. You don't pay extra for access to your own money.

For domestic wire transfers, PayPal doesn't offer traditional wire transfer services. You can send money to other PayPal accounts instantly for free, or transfer to bank accounts using standard ACH methods.

Airwallex handles both local payment rails and wire transfers. Domestic ACH transfers are free. Domestic wires incur minimal fees when necessary, though most businesses can avoid these by using ACH. Looking for a no-fee business bank account? Consider how express fees and wire charges impact your total costs.

PayPal vs Airwallex: reliability and support

Your business needs a financial partner which provides protection for funds and access to support to solve pressing issues promptly. PayPal does not offer FDIC insurance, while Airwallex partners with FDIC-insured banks to keep your funds protected. PayPal offers human support but response times vary while Airwallex offers support ready to assist you with any challenges relating to your account.

FDIC insurance

PayPal balances in the US aren't FDIC insured, though PayPal operates as a licensed money transmitter under state regulations. PayPal maintains partnerships with FDIC-insured banks for certain services, but your PayPal balance itself doesn't receive FDIC protection.

Airwallex partners with major US financial institutions to safeguard your funds. In the US, we work with Evolve Bank & Trust and Community Federal Savings Bank, both FDIC members. Funds held with our partner banks receive FDIC insurance up to $250,000 per depositor. We hold 60+ licenses globally and meet top security standards, including PCI DSS Level 1, SOC 1, and SOC 2 compliance.

Human support

PayPal provides email and phone support, though response times vary considerably. Many users report difficulty reaching human agents for complex issues, particularly regarding account holds or dispute resolution.

Airwallex offers 24/7 support with real people specialized in business financial operations. Our support team handles everything from technical integration questions to urgent payment issues. For instance, if you're processing a time-sensitive supplier payment at 10pm and encounter a problem, you reach a support specialist immediately—not an automated system.

Should I get PayPal or Airwallex?

The right decision between PayPal and Airwallex should be based on whether you choose brand recognition and only have simple business account needs or require a more robust account with low fees and global capabilities. PayPal is considered a top option for US-based use and accessibility while Airwallex was created to make it easier for businesses to scale beyond borders while reducing costs. Read on to learn which is the best option based on your business type.

Is PayPal or Airwallex better for freelancers?

If you're a freelancer working mainly with domestic clients who specifically prefer PayPal, the platform's recognition makes transactions easier. Clients trust PayPal's interface, and the dispute resolution process provides some protection for service providers.

However, if you're a freelancer with international clients, Airwallex delivers superior value. You can invoice clients in their local currency and receive payments to local bank accounts, reducing their transfer costs. You convert currencies only when rates favor you.

For example, if you're a US-based designer working with UK and Australian clients, you hold British pounds and Australian dollars separately, converting to dollars when the dollar weakens. Timing your conversions adds 3-5% to what you actually take home compared to PayPal's automatic conversion at poor rates. When comparing the best banks for small business operations, consider whether your freelance revenue comes primarily from domestic or international sources.

Is PayPal or Airwallex better for ecommerce businesses?

If you operate an eCommerce business selling primarily to US customers with average orders under $50, PayPal's brand recognition helps conversion. Customers trust the PayPal button, particularly for smaller purchases from unfamiliar merchants.

Airwallex works better for eCommerce businesses with international customers or higher order values. You accept payments through dozens of methods across different countries, letting customers pay using their preferred local method.

For instance, German customers can pay via SEPA bank transfer, Chinese customers use Alipay, and Dutch customers use iDEAL. Local payment options deliver better conversion than card-only checkouts. With like-for-like settlement, euros flow into your EUR account, dollars into your USD account, and pounds into your GBP account—no forced conversions eroding margins. > Learn more about best business bank accounts for ecommerce.

Is PayPal or Airwallex better for travel businesses?

Travel businesses face specific challenges: taking booking deposits months in advance, paying international suppliers, managing prices in multiple currencies, and handling cancellations with partial refunds. PayPal's basic functionality struggles with these complexities.

Airwallex handles these scenarios effectively:

Multi-currency holding: Match your revenue and expense currencies to reduce foreign exchange exposure. When you book European hotels in euros and collect customer payments in euros, you eliminate conversion costs entirely.

Single-use virtual cards: Create separate cards for specific bookings, making cancellations and partial refunds straightforward. For example, if a customer books a package including flights, hotels, and tours, create separate virtual cards for each component. If they cancel just the tour, refund that portion easily without affecting other bookings.

Transparent pricing: High-volume, low-margin operations typical in travel don't get consumed by hidden fees. You see exactly what you're paying for every transaction.

Is PayPal or Airwallex better for professional service businesses?

If you run a marketing agency, consulting firm, or development studio, you likely work with international clients and contractors. PayPal handles simple invoicing but becomes expensive when you're regularly paying overseas contractors or receiving international client payments.

Airwallex provides what professional services firms need for smooth operations. You can pay contractors in 200+ countries using local payment rails. Our Bill Pay feature automates invoice processing with AI-powered data extraction, while approval workflows ensure proper review.

For instance, an agency with clients in five countries and contractors in ten markets manages all payments through one platform. You gain real-time visibility into cash flow across all currencies without maintaining multiple bank accounts, spending substantially less time on financial administration.

Strategies for using PayPal and Airwallex

You can benefit from using both platforms strategically, leveraging each one's strengths.

Use PayPal for checkout, Airwallex for operations: Accept PayPal at checkout to capture customers who prefer this payment method. Transfer funds to your Airwallex account for currency management, supplier payments, and international operations. This provides customers payment flexibility while you maintain operational efficiency.

Geographic segmentation: Use PayPal for your domestic market where brand recognition matters most. Deploy Airwallex for international markets where multi-currency capabilities and local payment methods drive better conversion and lower costs.

Payment type optimization: Accept consumer payments through PayPal for its buyer protection and familiar interface. Use Airwallex for B2B transactions, supplier payments, and internal financial operations where cost efficiency and speed outweigh brand recognition.

Transition strategy: Start with PayPal if you're a new business needing immediate setup. Migrate to Airwallex as your international operations grow. This phased approach lets you build revenue before investing time in more sophisticated financial tools.

Additional options beyond PayPal and Airwallex

Other platforms might suit specific situations, though PayPal and Airwallex handle most business needs.

Stripe: Works well if you're developer-focused and need extensive customization and API flexibility. Stripe offers solid payment processing with excellent documentation. However, its multi-currency capabilities and FX rates don't match Airwallex. Stripe suits SaaS businesses with complex subscription billing needs.

Wise Business: Provides strong multi-currency accounts and competitive FX rates if you primarily need to move money internationally. Wise also offers a multi-currency debit card for worldwide spending. However, it lacks extensive payment acceptance methods, spend management tools, and corporate card options compared to Airwallex. Wise suits businesses focused primarily on currency exchange rather than comprehensive financial operations.

Revolut Business: Offers multi-currency accounts and corporate cards with a consumer-friendly interface. It includes spend management features like spending controls and bulk payments, with enterprise plans providing dedicated account managers. However, it doesn't cover as many local payment rails or provide the specialized international features that larger companies require.

Traditional banks: You'll still need traditional banks for services like business loans, merchant services, and in-person banking. However, they typically charge substantially higher fees for international operations and lack the modern features fintech platforms provide.

Frequently asked questions about PayPal vs Airwallex

What is the main difference between PayPal and Airwallex?

PayPal is primarily a payment processor designed for checkout and simple money transfers, with basic business account features. Airwallex is a comprehensive global financial platform providing multi-currency accounts, international payment acceptance, corporate cards, and advanced spend management specifically built for businesses operating across borders.

Does Airwallex support PayPal?

Yes, you can accept PayPal payments at checkout through integrations, then manage those funds through Airwallex's multi-currency accounts and global transfer network. This combination enables you to capture PayPal-preferring customers while leveraging Airwallex's superior international banking features and lower foreign exchange costs.

Is there a downside to a PayPal business account?

PayPal Business accounts have several limitations: high international transaction fees (up to 5%), poor foreign exchange rates (3.5-4% above mid-market rates), limited multi-currency functionality, slower settlement times (1-3 business days), and express transfer fees of 1.5%. These costs accumulate significantly for businesses with regular international operations or high transaction volumes.

Is a PayPal business account free?

Opening and maintaining a PayPal Business account costs nothing—there are no monthly fees or minimum balance requirements. However, you pay transaction fees on every sale: 2.9% + $0.30 for domestic card transactions, up to 4.4% + fixed fees for international cards, plus additional charges for currency conversion (3.5-4% markup) and international transfers (up to 5%). These transaction costs often exceed the total cost of platforms with monthly fees but lower per-transaction charges.

Do I need an LLC or EIN for a PayPal business account?

In the US, you need either an EIN (Employer Identification Number) or SSN (Social Security Number) to open a PayPal Business account, but you don't need an LLC. Sole proprietors can use their SSN to establish a business account. However, having an LLC or other formal business structure may provide liability protection and tax benefits beyond what PayPal requires.

Can you use PayPal as a business bank account?

PayPal can hold funds and process payments, but it's not technically a bank. Your PayPal balance lacks FDIC insurance, and PayPal doesn't provide services like business loans, lines of credit, merchant cash advances, or other traditional banking products. While you can use PayPal for basic payment processing and fund storage, most businesses need an actual business bank account for comprehensive financial operations, especially for managing cash flow, paying expenses, and maintaining proper accounting records.

Sources

1. https://www.juniperresearch.com/press/losses-online-payment-fraud-exceed-362-billion/