PayPal vs Wise for Kenya: Which is Better in 2025?
Choosing between PayPal and Wise for sending money to Kenya? This detailed comparison covers fees, exchange rates, transfer speeds, and features to help you decide which service is better for your needs in 2025.
Quick Comparison: PayPal vs Wise for Kenya
PayPal
- 🔹 Exchange Rate: Market rate + 4% fee
- 🔹 Transfer Fee: 4.4% + $0.30 per transaction
- 🔹 Transfer Time: 3-5 business days
- 🔹 Minimum: $1
- 🔹 Maximum: $10,000 per transaction
Wise
- 🔹 Exchange Rate: Market rate + 0.5% fee
- 🔹 Transfer Fee: From 0.5% (varies by currency)
- 🔹 Transfer Time: 1-2 business days
- 🔹 Minimum: $1
- 🔹 Maximum: $1,000,000 (with verification)
*Rates and fees are approximate and subject to change
Fees Comparison
Let's compare the total cost of sending $100, $500, and $1,000 to Kenya with both services:
| Amount | PayPal Total Fees | Wise Total Fees | You Save with Wise |
|---|---|---|---|
| $100 | ~$4.70 (4.4% + $0.30) | ~$0.50 (0.5%) | ~$4.20 |
| $500 | ~$22.30 (4.4% + $0.30) | ~$2.50 (0.5%) | ~$19.80 |
| $1,000 | ~$44.30 (4.4% + $0.30) | ~$5.00 (0.5%) | ~$39.30 |
Key Differences
1. Exchange Rates
Wise uses the real mid-market exchange rate with a small markup (typically 0.5%). PayPal adds about 4% to the exchange rate, which is significantly higher.
2. Transfer Speed
Wise transfers typically complete in 1-2 business days. PayPal transfers usually take 3-5 business days to reach a Kenyan bank account.
3. Recipient Options
Wise allows transfers to Kenyan bank accounts and M-PESA. PayPal only supports bank transfers in Kenya, not M-PESA.
4. Withdrawal Options
With Wise, recipients can withdraw to their bank account or M-PESA. With PayPal, funds must be withdrawn to a bank account, which may incur additional bank fees.
When to Use PayPal
- 🔹 The recipient already has a PayPal account and prefers it
- 🔹 You're paying for goods or services (PayPal offers buyer protection)
- 🔹 You're sending small amounts occasionally
When to Use Wise
- 🔹 You want the best exchange rates and lowest fees
- 🔹 You need to send money to M-PESA
- 🔹 You make regular international transfers
- 🔹 You're sending larger amounts (savings increase with amount)
How to Withdraw Money from PayPal to Kenya
- Link your Kenyan bank account to your PayPal account
- Go to 'Wallet' and click 'Transfer Money'
- Select 'Transfer to your bank account'
- Enter the amount and confirm the transfer
- Wait 3-5 business days for the funds to arrive
Important:
PayPal charges a 2.5% currency conversion fee when withdrawing to a Kenyan bank account, on top of their exchange rate markup.
How to Use Wise to Send Money to Kenya
- Create a Wise account and verify your identity
- Choose 'Send money' and enter the amount
- Select 'Kenya' as the destination
- Choose whether to send to bank account or M-PESA
- Enter recipient details and send the money
Conclusion
For most people sending money to Kenya, Wise is the clear winner due to its significantly lower fees and better exchange rates. The savings can be substantial, especially for larger amounts.
However, PayPal might be more convenient if the recipient already uses PayPal or if you need the buyer protection for purchases.
Pro Tip:
For the absolute best rates, consider using Wise's multi-currency account to hold and convert money when exchange rates are favorable.
Last updated: June 5, 2025