Flywire vs PayPal: A Comprehensive Comparison for Business Merchants

Note that the information about the payment providers found in this article was taken from their respective websites and third-party sources on 31 December 2024. This information is subject to change.

Businesses and merchants need to choose the right payment processor to facilitate the smooth acceptance and settlement of payments. In this article, we look at two such types of payment gateway platforms Flywire vs PayPal, breaking down their features, security compliances, pricing, settlement duration, support systems, and dashboard usability, which will help you make the right decision.

Overview

Flywire was founded by Iker Marcaide in July 2009 in Boston, Massachusetts, USA, under the name of peerTransfer. He discovered the idea when he experienced difficulties in making his tuition payments as an international Spanish student at the Massachusetts Institute of Technology (MIT) in 2008. He started with an objective to make international payments simpler, especially for students paying tuition fees to overseas institutions. In 2015, it was officially rebranded as Flywire and has since then expanded its services to other industries as well such as travel and healthcare.

PayPal was originally founded by Max Levchin, Luke Nosek, and Peter Thiel in 1998 in Palo Alto, California, under the name Confinity, with the first version of electronic payments being launched in 1999 after initially focusing on security software for handheld devices. It merged in 2000 with Elon Musk’s X.com and was rebranded as PayPal before going public in 2002. eBay acquired it for $1.5 billion shortly after its IPO, however, it spun off as a separate company in 2015. It has since then expanded its services globally, cementing its place in the digital payments arena with over 400 million worldwide users.

Supported Markets and Customer Base

Flywire’s global payment network enables clients to settle payment transactions across 240 countries and territories in over 140 currencies. It offers services in over 35 spoken languages through 1300+ FlyMates, ensuring accessibility to over 4000 clients across the globe. It provides payment solutions to industries such as education, healthcare, and travel and facilitates seamless cross-border B2B payments.

PayPal is available in 200+ countries and regions and supports cross-border transactions in 25 currencies. The platform caters to a global user base in multiple languages. Its payment solutions span various industries from restaurants, utilities, education, and transportation to travel, publishing, media, and entertainment.

Features

Supported payment methods

Flywire supports various payment methods across different countries such as:

• Credit and debit Cards (e.g., Visa, Mastercard, American Express)
• Digital Wallets (e.g., Alipay in China, PayPal in the US, UK, and Canada)
• Bank Transfers in the respective country's currency
• For UK merchants: Supports Visa/Mastercard/American Express cards, PayPal, bank transfers, and online banking in GBP

PayPal is both a wallet and payment gateway that provides a wide range of payment methods including:

• PayPal Wallet which allows users to use their PayPal balance
• Accepts major card networks (e.g. Visa, Mastercard, American Express, and Discover)
• Region-specific payment methods for global customers (Bancontact in Belgium, iDEAL in the Netherlands, BLIK in Poland, etc.)
• Digital Wallets such as Apple Pay, Google Pay, and Venmo for US customers
• For UK merchants: Payment methods include Visa/Mastercard/American Express/Discover cards, PayPal Wallet, and Alternative Payment Methods such as Trustly

Recurring billing and subscription management

Flywire offers a Repeat Payment function that can be accessed through Flywire Checkout. It enables businesses to schedule specific payments on specific dates or collect fixed subscription payments recurring on stipulated time intervals. It also facilitates tokenisation, allowing businesses to charge a token for a variable amount as and when required.

PayPal allows businesses to set up automatic billing cycles, create customisable subscription plans, and manage upgrades and downgrades efficiently.

Unique additional features

Flywire does not currently offer a wide variety of payment methods, such as cryptocurrency payments, BNPL options, or in-person payments. Instead, it focuses on simplifying international transactions through a proprietary global payment network that spans multiple countries (from US to China, Korea, Nigeria, and Nepal and more). This approach is particularly beneficial for universities collection fees from international students. Flywire's services are primarily centered around bank wire transfers but also include pay-by-link options for added convenience.

PayPal some additional services, available in select regions. For example, it allows US customers to transact in cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, directly within their PayPal accounts. PayPal offers BNPL options in seven countries (Australia, France, Germany, Italy, Spain, the UK, and the United States) that enable businesses to allow customers to split purchases into smaller manageable amounts with options like Pay in 4 and Pay Monthly. Further, in some markets PayPal provides point-of-sale (POS) solutions through PayPal Zettle, allowing businesses to accept in-person payments, as well as mass payouts options.

Security & Compliance

Many users wonder if Flywire is safe. Flywire is a certified Level 1 Service Provider under PCI DSS and undergoes annual Service Organization Control (SOC) reviews. It complies with global data protection laws, including PIPEDA, FERPA, GDPR, and GLBA to safeguard personal information. It also employs tokenisation utilising unique identifiers to replace sensitive payment information and uses predictive analytics, artificial intelligence, and machine learning to detect and prevent fraudulent activities. It is registered as a licensed payments company or Money Service Business (MSB) in multiple jurisdictions, including the EU, the UK, the US, Canada, Singapore, Australia, and New Zealand.

PayPal is PCI DSS compliant and supports 3D Secure (3DS) authentication for online card transactions. It also implements tokenisation and employs advanced machine learning and algorithms to detect and prevent suspicious activities. It operates in various countries and is registered as an MSB with the FinCEN in the US. Further, it also holds a banking license in Luxembourg to operate across the EEA.

Integration

Flywire does not provide ready-made plugins for popular e-commerce platforms but allows merchants to integrate Flywire’s payment solutions through APIs. It provides RESTful APIs allowing businesses to manage payment flows directly within their platforms and offers third-party integration with leading ERP, CRM, and accounting systems such as Certinia, Microsoft Dynamics 365, QuickBooks Online, and 9 others to digitise payments and automate reconciliation.

PayPal offers a wide range of ready-made plugins and extensions compatible with various popular e-commerce platforms such as Shopify, WooCommerce, BigCommerce, and 23 others (availability varies by country). It also offers a comprehensive suite of APIs and SDKs as well as provides GraphQL, next-generation API, facilitating advanced integrations for customised payment solutions (available for PayPal Braintree enterprise users). Further, it offers third-party integrations with various accounting and ERP systems, including NetSuite and SAP.

Merchant Dashboard Usability

Flywire provides a user-friendly dashboard that allows merchants to track transitions and manage payments with access to real-time reporting and facilitates a unified view by integrating with various ERP and CRM systems. PayPal also features an intuitive dashboard that supports detailed analytics and enables merchants to gain insights into customer behaviour and monitor performance.

Pricing

Both Flywire and PayPal offer distinct pricing structures for payment processing services. While the Flywire payment system offers competitive rates, PayPal emphasises extensive features but can have higher fees for certain payment transactions. Thus, in case you are looking for cost-effective solutions, you can always go for Noda, a PayPal alternative for lower fees.

Settlement Times

Quicker settlement enables businesses to efficiently manage cash flows. Flywire usually takes 2-3 business days to process and deliver the funds to the recipient after receiving the payment.

PayPal processes transactions immediately and funds are available in the merchant’s PayPal account without any delay after transaction completion. However, transferring funds from PayPal to the merchant’s bank account usually takes 1–3 business days for standard transfers, whereas instant transfers are available with an additional fee of 1.5%.

Support

Flywire offers support through email and online guides and provides personalised support during the onboarding process. It has a Trustpilot rating of 3.9, usually indicating positive feedback with users appreciating Flywire’s efficiency but also noting customer service's limited availability during peak times.

Companies like PayPal provide extensive support via live chat, email, phone, and comprehensive online guides during specified hours, with PayPal Assistant offering 24/7 automated help. Dedicated account managers are available for business accounts, especially using premium services or with higher volume transactions. It has a Trustpilot rating of 1.3, indicating strong dissatisfaction, with users reporting issues such as account holds and challenges in resolving disputes.

Which is Better: Flywire vs PayPal?

Flywire, a strong PayPal competitor, excels in cross-border transactions with strong security and transparent pricing, generally ideal for global business. It focuses on industries such as healthcare, education, travel, and B2B, offering seamless payment solutions. However, PayPal offers versatile features such as cryptocurrency, in-person, and BNPL payments for a much broader range of businesses, including small merchants and non-profit organisations but higher fees and trust concerns may deter some users.

Flywire and PayPal Alternatives

There are many payment platforms for businesses that are often seen as companies similar to PayPal or a Flywire Competitor. However, if you are looking for an efficient and simpler approach to payment processing, then you must consider Noda, a revolutionary open-banking platform, that offers a superior alternative to traditional payment methods involving cards. Noda eliminates intermediaries included in the card processing and instead offers instant bank-to-bank settlements with zero chargebacks and lower fees.

Noda with extensive coverage across 2000+ banks in 28 countries (such as the UK, EU, Brazil, and Canada), enhances user engagement with innovative features like Noda Buffet, customising payment options for major banks in each country, with a higher payment acceptance rate of 94%.

Merchants benefit from Noda’s advanced tools like LTV prediction for identifying high-value users and identity verification without document uploads. It empowers businesses with built-in analytics and comprehensive solutions by allowing seamless integration via APIs and plugins for the most popular e-commerce platforms such as WooCommerce, Magento, and more. Thus, Noda represents a transformative force in global payment processing, with personalised support through dedicated account managers, making it an ideal fit for diverse industries like e-commerce, travel, gaming, SaaS, retail, and more.