When it comes to international money transfers and online payments, Wise and PayPal are two popular options that often come to mind. Wise is known for its low-cost international transfers and transparent fees, making it a good choice for those sending money abroad. PayPal, on the other hand, is a versatile platform that manages e-commerce transactions and peer-to-peer payments.
In this post, we’ll dive deep into both platforms, comparing their features, pros, and cons. We’ll also introduce Routable as an alternative that offers a powerful solution for businesses looking for a better international payment experience.
Wise and PayPal Overview
Wise
Wise (formerly TransferWise) is a fintech company specializing in international money transfers. It offers a multi-currency account and a debit card for easy spending abroad.
Key features:
- Low-cost international transfers
- Real mid-market exchange rates
- Multi-currency accounts
- Wise debit card for international spending
PayPal
PayPal is a widely used online payment system that facilitates e-commerce transactions and peer-to-peer payments.
Key features:
- Easy online and in-app payments
- Buyer and seller protection
- Integration with various e-commerce platforms
- PayPal debit card for spending and withdrawals
Why Routable is a Better Alternative to Wise and PayPal
While Wise and PayPal offer solutions for international transfers and online payments, Routable provides a more comprehensive platform for businesses looking to automate their accounts payable process and send international payments more easily.
- Full AP automation with invoice capture and approval workflows
- Mass payment capabilities for efficient batch processing
- Advanced vendor management and compliance checks
- Real-time two-way sync with existing accounting systems
| Tool | Summary | Best For |
| Wise | International transfers with transparent fees | Individuals and small businesses sending money abroad |
| PayPal | Versatile online payment platform | E-commerce businesses and individuals making online transactions |
| Routable | Comprehensive AP automation and payment platform | Businesses looking to streamline their entire payment process |
Wise and PayPal Feature Comparison
| Feature | Wise | PayPal |
| International Transfers | Offers low-cost transfers, but limited to bank accounts | Supports transfers to bank accounts and PayPal wallets, but with higher fees |
| Currency Exchange | Uses mid-market rates, but limited currency options | Offers more currency options, but with less favorable exchange rates |
| Payment Methods | Limited to bank transfers and debit cards | Supports various payment methods, including credit cards, but with higher fees |
| Business Tools | Basic multi-currency account, lacking advanced features | Offers more e-commerce tools, but can be complex to navigate |
| User Interface | Clean and straightforward, but may lack advanced options | Feature-rich but can be overwhelming for new users |
| Customer Support | Primarily digital support, with limited phone options | Offers more support channels, but response times can be slow |
Use Cases
Wise Use Cases
Wise functions primarily as an international money transfer service with multi-currency capabilities. Common use cases include:
- Sending money to family members in other countries
- Freelancers receiving international client payments
- Small businesses handling overseas supplier payments
- People managing expenses across multiple currencies
- Individuals living or working abroad
Wise works best for users who make regular international transfers and want an alternative to traditional bank transfers, though its services are limited to basic money movement rather than comprehensive financial tools.
PayPal Use Cases
PayPal operates as a general-purpose online payment system. While widely accepted, it comes with varying fees and features depending on usage. Typical scenarios include:
- Small business owners using it for:
- Basic online payment processing
- Customer refunds and disputes
- Standard e-commerce integration
- Individual users typically use it for:
- Splitting costs with friends
- Online purchases
- Subscription payments
- Basic money transfers
PayPal offers standard payment features but may not be the most cost-effective solution for all situations, particularly for international transfers or high-volume business transactions.
When to Use Each Platform
When to Choose Wise
Wise might be appropriate when dealing with international money transfers and currency exchange. Consider Wise when:
You’re making international transfers and want to compare rates. The platform offers:
- Mid-market exchange rates
- Upfront fee structure
- Standard transfer times
It might be suitable when:
- Needing a multi-currency account for travel
- Setting up international payments
- Looking for alternatives to bank transfers
- Requiring basic banking features in multiple currencies
When to Choose PayPal
PayPal could be an option when you need a commonly accepted online payment method. It might be suitable when:
- You need basic peer-to-peer payments
- Purchase protection is a concern
- You’re selling through common online platforms
- You want to accept cards without a merchant account
Routable: A better alternative to Wise and PayPal
| Feature | Wise | PayPal | Routable |
| Mass Payments | No built-in capability for batch processing; requires manual individual payment processing | Supports batch payments with volume limitations basic reporting capabilities and restricted customization options | Advanced mass payment system with unlimited batch processing customizable scheduling multiple payment methods and comprehensive tracking |
| Vendor Management | Basic contact storage and payment history tracking with minimal vendor detail capabilities | Limited functionality including basic vendor profiles simple categorization and payment preference storage | Comprehensive system with detailed vendor profiles custom fields performance tracking document management and relationship history |
| Invoice Capture | No native invoice processing capabilities | No automated invoice handling system | Sophisticated AI-powered OCR with automatic data extraction line item detection multi-currency support and exception handling |
| Approval Workflows | No built-in approval system | Basic single-level approvals with simple routing rules and minimal customization | Fully customizable multi-level approval workflows with dynamic routing role-based permissions mobile approvals and delegation rules |
| PO Matching | No purchase order matching functionality | No PO matching capabilities | Comprehensive 2-way and 3-way matching with automated exception handling variance tracking and custom matching rules |
| Payment Reconciliation | Manual reconciliation process required | Basic transaction matching with simple reporting and manual exception handling | Automated system with real-time matching bank integration exception management and detailed audit trails |
| International Payments | Basic cross-border payment support | Standard international payment capabilities | Extensive coverage in 220+ countries 1-3 day delivery competitive rates multiple currencies and local payment methods |
| CSV Payments | Limited to basic file uploads with simple format requirements | Standard templates with basic validation capabilities | Advanced processing with custom mapping validation rules error handling and automated scheduling |
| Vendor Onboarding and Compliance | No dedicated onboarding system | Basic registration process with simple verification steps | Full-featured system with automated workflows document collection compliance checking and vendor self-service |
| Real-Time Two-Way Sync | No synchronization capabilities | Basic API integration with delayed updates | Complete two-way sync with real-time updates API-first architecture and webhook support |
| Vendor Tax Management | No tax management features | Basic tax form collection and simple reporting | Comprehensive tax management including automated form collection global compliance and year-end processing |
How Routable stands apart
Routable offers features and capabilities that go beyond simple payment processing. Here’s what makes it unique:
Comprehensive AP Automation
Routable transforms accounts payable from a manual process into a streamlined operation.
- End-to-end automation including:
- Invoice capture with AI-powered accuracy
- Automated PO matching and routing
- Payment scheduling and execution
- Real-time reconciliation
Advanced vendor management
Routable offers sophisticated vendor relationship tools that help businesses:
- Streamline vendor onboarding with:
- Automated tax information collection
- Built-in compliance checks
- Tax document management
Real-time accounting software sync
Routable’s integration capabilities ensure smooth operation with existing systems:
- Real-time synchronization with:
- Major accounting platforms
- ERP systems
- Banking infrastructure
- Payment networks
- The platform eliminates data silos by:
- Automatically updating all connected systems
- Maintaining consistent records
- Providing audit-ready documentation
- Enabling custom data mapping
Customizable workflows
Businesses can tailor payment processes to their specific needs with:
- Flexible approval workflows featuring:
- Multi-level approvals
- Amount-based routing
- Role-based permissions
- Custom approval rules
- Enhanced control through:
- Detailed audit trails
- Automated compliance checks
- Payment scheduling options
While Wise and PayPal are decent options for business payments, consider using Routable instead.
