Can you send wire transfers from Canada with PayPal?

While PayPal supports international transfers, it doesn’t work quite like a typical wire transfer, and fees can be pricey. We're breaking down PayPal’s international payment options, the fees you might face, and why Wise could be a more budget-friendly alternative. Let’s dive in!

Does PayPal Offer Wire Transfers in Canada?

PayPal doesn’t offer wire transfers in Canada in the traditional sense, but it does provide international money transfer services through Xoom¹, a PayPal-owned platform. While PayPal itself allows users to send and receive money between PayPal accounts globally, Xoom extends these capabilities by letting users transfer funds directly to bank accounts, debit cards, or for cash pickup in over 160 countries².

Unlike conventional wire transfers, PayPal and Xoom focus on speed and convenience. Xoom, in particular, offers various payout methods depending on the recipient’s country. However, fees can vary based on the payment method and destination, making it important to compare costs before sending money abroad.

How Do International Transfers Work with PayPal?

PayPal allows international transfers to over 110 countries, while Xoom, its separate service, expands coverage to 160+ countries. You can send money in multiple currencies, though exchange rate markups and fees apply.

To send money internationally via PayPal²:

1. Log into your account and select “Send Money.”
2. Enter the recipient’s name, email, phone number, or PayPal username.
3. Choose the amount, currency, and payment method.
4. Review the fees and exchange rate before confirming the transaction.

If your recipient doesn’t have a PayPal account, you can use Xoom to send money directly to their bank, mobile wallet, or for cash pickup.

PayPal International Transfer Fees and Exchange Rates

Sending money internationally with PayPal comes with various fees, depending on the payment method and destination. PayPal charges a flat fee for personal transactions, plus an additional percentage for card payments. On top of that, PayPal applies a currency conversion fee of 3–4% above the exchange rate³, making international transfers more expensive.

PayPal International Transfer Fees and Exchange Rates

Unlike some banks that charge wire transfer fees, PayPal’s international transfers use a percentage-based model, which can be costly for larger transactions. The exchange rate markup also means recipients receive less money.

Alternatives to PayPal for International Transfers

If you’re looking to send money internationally from Canada, PayPal isn’t your only option, with several banks and online providers offering international transfer services.

Popular international transfer providers in Canada include:

• Wise – Uses the mid-market exchange rate with low, transparent fees. Ideal for sending and receiving money in 40+ currencies.
• Payoneer – For businesses and freelancers who need to receive international payments from platforms like Amazon or Upwork.
• Western Union – Provides cash pickup services in 200+ countries⁵ but comes with high fees and less competitive exchange rates.
• Remitly – A popular option for remittances with fast transfers but varying fees based on the destination and transfer speed.

Banks vs. Online providers: Which one is better?

Well-known banks like RBC, TD Bank, BMO, and CIBC all offer international wire transfers, but they tend to come with higher fees, slower processing times, and exchange rate markups. Transfers can also require in-person visits or lengthy processing steps, making them a less convenient option.

Online providers such as Wise and Remitly provide faster, often cheaper alternatives, usually offering a digital-first approach alongside lower fees, making them ideal for frequent international payments.

Why Wise Is a Better Alternative for International Transfers

When it comes to sending money abroad, Wise can be a more cost-effective and transparent alternative to PayPal. Unlike PayPal, which adds a 3–4% markup to exchange rates and charges extra fees for international payments, Wise provides the mid-market exchange rate, with no extra markups. With conversion fees starting from just 0.48%⁴, Wise ensures that more of your money reaches its destination, without hidden charges.

Wise vs. PayPal for international transfers

Multi-currency account benefits

A multi-currency account allows you to hold, convert, and send money in different currencies from a single account, meaning you can receive payments like a local, avoid unnecessary conversion fees, and manage your finances more efficiently when working with international clients or suppliers.

Instead of maintaining separate accounts in multiple countries, a multi-currency account gives you the flexibility to transact globally without relying on expensive bank transfers.

How to Use Wise for International Payments

Step 1. Register for free: Sign up online or via the Wise app using your email, Google, or Facebook account.
Step 2. Choose an amount to send: Enter how much you’re sending, and Wise will display the real exchange rate and fees upfront.
Step 3. Add recipient details: Enter your recipient’s bank account details or select from saved recipients.
Step 4. Verify your identity: For security and compliance, Wise may ask for ID verification, especially for larger transfers.
Step 5. Choose how to pay: Fund your transfer via direct debit, wire transfer, bill payment, or debit/credit card.
Step 6. Confirm and send: Wise processes many transfers instantly or within hours, and you can track your payment in real time.

How the Wise Multi-Currency Account works

A Wise multi-currency account allows you to hold, convert, and send over 40 currencies with no hidden exchange rate markups.

• Get local bank details in 23 currencies, including CAD, USD, GBP, and EUR, to receive payments like a local
• Hold and spend in 40+ currencies, so you can manage funds without constantly exchanging money.
• Send payments worldwide without high wire transfer fees.
• Convert money at the mid-market exchange rate whenever you need to.
• Use the Wise card to spend in over 150 countries, with automatic currency conversion at the real exchange rate.
• Manage all your international transactions in one place, avoiding the hassle of multiple bank accounts.

Wise Card benefits for international spending

The Wise account also comes with a card for easy global spending. It automatically converts your balance at the best available rate, saving you up to 4x compared to bank cards. With the Wise card you can:

• Spend in 150+ countries with no foreign transaction fees.
• Withdraw cash from 3 million ATMs worldwide, with free withdrawals up to 350 CAD per month⁴.
• Use Google Pay or Apple Pay immediately, even before your physical card arrives.

Final Thoughts on PayPal Wire Transfers in Canada

While PayPal is a widely used platform for international payments, it doesn't support traditional wire transfers in Canada. Instead, users must rely on PayPal-to-PayPal transactions or its Xoom service, both of which come with fees and exchange rate markups that make transfers more expensive than they seem at first glance.

If you're looking for a more cost-effective way to send money abroad, Wise offers a better alternative. With the mid-market exchange rate, low transparent fees, and a multi-currency account that lets you send, receive, and hold multiple currencies, Wise provides a smarter way to manage international payments.

Sources:

1. Send Money Internationally | Transfer Money Abroad | PayPal US
2. Xoom
3. PayPal Consumer Fees
4. Wise Fees & Pricing: Only Pay for What You Use