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PayPal vs Airwallex: fees, currency conversion and who each one suits for a US LLC selling abroad

PayPal and Airwallex compared for a US LLC: card and wallet fees, international surcharges, the currency-conversion spread, payouts, monthly fees and eligibility from Egypt and the Gulf, with worked examples on the same sale.

September 28, 2026 PayPalAirwallexpayment gatewaycurrency conversionUS LLCfees
Illustration of a balance scale weighing a smartphone showing a pay button against a desk globe.

The short answer

PayPal and Airwallex do different jobs. PayPal is a consumer brand: buyers who already hold a PayPal account can pay with it, and some clients and platforms pay only that way. Airwallex is a multi-currency business account that also accepts cards, and its strength is receiving, holding and converting money in several currencies at a low margin.

On a $100 sale to a US card, PayPal's standard checkout keeps $3.98 and Airwallex $3.10, as published on 28 September 2026. The gap widens when the buyer is abroad and pays in another currency: PayPal keeps $8.48 and Airwallex $5.60 on the same $100, because PayPal builds a conversion spread of roughly 3–4% into its exchange rate while Airwallex charges 1% when a sale converts.

The deciding factor is who is paying you. If your buyers insist on PayPal, you need PayPal. If most of your income is international and in several currencies, Airwallex costs less on each sale and gives you somewhere to hold and convert it.

How they differ at a glance

Both are payment processors: they move the money, and you remain the seller responsible for your own tax. By default, neither is a merchant of record, which is a provider that legally sells your product to the buyer and therefore calculates, collects and remits the sales tax or VAT on each sale. Airwallex's Merchant of Record add-on is in early access, and the US fee schedule does not price it.

PayPal Airwallex
Type Payment processor with a buyer-facing wallet Payment processor plus multi-currency business account
Standard rate 3.49% + $0.49 (PayPal Checkout); cards 2.99% + $0.49 2.8% + $0.30 (US cards)
International cards +1.5% 4.3% + $0.30 (+1.5%)
Currency conversion Built into the rate, roughly 3–4% above base 1% when a sale converts; 0.5% if a non-USD sale settles in the same currency; converting a balance is 0.5% above interbank for major currencies, 1% for others
Subscriptions No surcharge in our model Subscription Management, +0.5%
Sales tax / VAT You, the seller You, the seller; automatic tax calculation 0.4% on invoices and subscriptions
Payouts Bank transfer free; instant 1.75% (max $25) Local transfers free within the US and Canada; $1 or more abroad in most currencies on Explore; SWIFT $15–$25
Monthly fee None on the standard account Explore plan $0; paid plans add features
Who can open US LLC: US PayPal Business; Egypt accounts have limits Businesses registered in an eligible country

All figures are for a US account settling in US dollars. PayPal's figures and Airwallex's card rates are as published on 28 September 2026 on PayPal business fees and Airwallex US pricing; Airwallex's conversion, subscription and transfer fees are from its fee schedule, read on 5 November 2026.

Fees on the same sale

These are the worked examples from our fee model, using PayPal Checkout (3.49% + $0.49) and Airwallex's online card rate. "International" means a card issued outside the US; "+ FX" means the buyer pays in another currency and the gateway converts it.

Scenario PayPal Airwallex
$100 US card fee $3.98 / net $96.02 fee $3.10 / net $96.90
$100 international card fee $5.48 / net $94.52 fee $4.60 / net $95.40
$100 international card + FX fee $8.48 / net $91.52 fee $5.60 / net $94.40
$100 international subscription fee $5.48 / net $94.52 fee $5.10 / net $94.90
$29 US subscription fee $1.50 / net $27.50 fee $1.26 / net $27.74
$29 international subscription fee $1.94 / net $27.06 fee $1.70 / net $27.30
$1,000 international card fee $50.39 / net $949.61 fee $43.30 / net $956.70
Charge needed to net $100 (US card) $104.12 $103.19

Two things drive the gap. The first is the base rate: PayPal Checkout starts at 3.49% plus $0.49, Airwallex at 2.8% plus $0.30, and both add 1.5% for an international card, so the difference carries through every one-off row. The second is conversion. PayPal does not show conversion as a separate line; it is built into the exchange rate it applies, roughly 3–4% above the base rate, and our model uses 3%. Airwallex charges 1% when a sale converts into your settlement currency, whatever the currency, and the table uses that figure. At the upper end of PayPal's range, the gap is wider than shown.

The subscription rows include Airwallex's 0.5% Subscription Management fee, which narrows the gap: $0.38 on a $100 international subscription against $0.88 on a one-off sale. Our model applies no subscription surcharge to PayPal, so check its page for the billing product you plan to use. To run your own numbers, use the PayPal fee calculator, the Airwallex fee calculator, or the all-gateways comparison.

PayPal in practice

PayPal's main asset is that buyers know it. A client who keeps a PayPal balance, or who does not want to enter card details on an unfamiliar site, can pay with a PayPal login. Several products share the same headline price: PayPal Checkout and the PayPal button at 3.49% + $0.49, and Venmo and PayPal Invoicing at the same rate. Card payments through PayPal cost 2.99% + $0.49 on standard processing, or 2.89% + $0.29 on advanced (unbranded) card processing, where the checkout does not carry the PayPal brand.

Money arrives in a PayPal balance. A standard transfer to your bank is free, and an instant transfer costs 1.75% up to $25. There is no monthly fee on the standard account. The chargeback fee is set per currency and waived when the transaction is covered by Seller Protection.

The real limits are cost and visibility. Every international sale pays the 1.5% surcharge, and every sale that changes currency pays the conversion spread inside the rate, so it does not appear on the fee line. PayPal also holds the balance under its own account terms, and it can place holds or limitations on an account, which matters more when PayPal carries most of your revenue. The PayPal in Egypt guide covers those terms in detail.

Airwallex in practice

Airwallex is a business account first. It holds balances in several currencies and converts between them at 0.5% above interbank for major currencies and 1% for others. According to its fee schedule, read on 5 November 2026, local transfers are free within the US and Canada and cost $1 or more abroad in most currencies on the Explore plan, and SWIFT transfers cost $15 to $25. Card acceptance sits on top: 2.8% + $0.30 for US cards and 4.3% + $0.30 for international cards.

That combination suits a business that is paid in one currency and spends in others. A seller who receives GBP and EUR from clients and pays contractors in several countries can keep those balances instead of converting everything to dollars and back. A non-USD card sale settled in the same currency costs 0.5%.

The Explore plan has no monthly fee; paid plans add features. Chargebacks cost $15 plus any network charges, and our guide to Airwallex fees covers refunds, transfers and plans. Airwallex is not a consumer brand that buyers hold a balance with, so a buyer who wants to pay with PayPal specifically will not find that option through it. Its Subscription Management product adds 0.5% to each successful recurring payment.

Who can use each one from Egypt or the Gulf

PayPal. PayPal operates personal and business accounts in Egypt, with limits on receiving and withdrawing that the PayPal in Egypt guide explains; the Egyptian account is priced on PayPal's Egypt merchant fees page, not at the US rates above. For Saudi Arabia, the UAE and other Gulf countries, check PayPal's countries page for what is offered where you live. A US LLC can apply for a US PayPal Business account, which is priced at the US rates in this article.

Airwallex. Airwallex opens accounts for businesses registered in its eligible countries, and its US entity onboards US-registered companies. Whether a company registered in Egypt, Saudi Arabia or the UAE qualifies depends on the eligible-countries page and the eligibility requirements; check both for your company's country before applying. On 5 November 2026 the list did not include Egypt, Saudi Arabia or the UAE. For a US company owned from abroad, Airwallex also requires a genuine US place of business: a registered agent's address counts only for online sellers of goods or companies formed within the last year. Airwallex also looks at where each owner lives, and we could not confirm how it treats an owner in Egypt or the Gulf. Our guide to Airwallex fees sets out the full rules.

A US LLC can apply for the US-priced accounts described here. Foundlie forms the US LLC; the account decisions stay with PayPal and Airwallex, and each provider decides after its own review. A company is a condition for applying, not a guarantee of approval.

Which one to choose

Choose PayPal if:

  • your clients or buyers ask to pay with PayPal, or a platform you sell through pays out only to PayPal;
  • you invoice a small number of clients and value that they can pay from a balance they already hold;
  • most of your sales are in US dollars, where the conversion spread does not apply.

Choose Airwallex if:

  • most of your income comes from outside the US and in currencies other than the dollar;
  • you want to hold several currencies and pay suppliers or contractors abroad without converting twice;
  • the fee on each card sale matters more than offering a PayPal button.

Using both makes sense when a share of your buyers insists on PayPal but most of your revenue is international card payments. Keep PayPal as an option at checkout or on invoices, run cards and multi-currency balances through Airwallex, and watch how much volume goes through PayPal in currencies other than the dollar, since that is where its spread costs most.

Frequently asked questions

Which is cheaper for an international sale paid in another currency?

Airwallex, in our model. On a $100 sale to a card issued outside the US, paid in another currency, PayPal keeps $8.48 (net $91.52) and Airwallex $5.60 (net $94.40), at the rates above. Most of the gap is PayPal's conversion spread, which our model sets at 3% against Airwallex's 1%.

Can I use PayPal or Airwallex without a US company?

PayPal, yes, within the limits of an account in your own country; an Egyptian account has its own fees and withdrawal rules. Airwallex requires a business registered in one of its eligible countries, so check its eligible-countries list for yours. Without a US company, the US rates in this article do not apply to you.

Does either one handle sales tax or VAT?

Not as a merchant of record would. Both are payment processors, so collecting and filing any sales tax or VAT remains your responsibility. Airwallex can calculate tax on invoices and subscriptions for 0.4%.

Why does PayPal's conversion cost not appear as a fee?

Because PayPal applies it through the exchange rate, roughly 3–4% above the base rate, rather than as a separate line. Compare the amount you receive with the market rate on the same day to see it.

Which is cheaper for a US subscription?

On a $29 subscription paid with a US card, PayPal keeps $1.50 and Airwallex $1.26 in our model, which includes Airwallex's 0.5% Subscription Management fee and adds no surcharge for PayPal. Check each provider's billing product before relying on these figures for recurring revenue.

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