Wise vs PayPal vs New Payment Models: What’s Actually Better?

Introduction

When it comes to global payments, two names come up again and again:

• Wise

• PayPal

They’ve become the default for sending and receiving payments internationally.

But they’re not the only options anymore.

A new category of payment models is emerging — built differently from the ground up.

So how do they actually compare?

And what’s better in 2026?

The Three Payment Models

To understand the landscape, you need to look at three distinct models:

1. Traditional Banking-Based Payments

Built on:

• bank accounts

• SWIFT networks

• multi-step settlement

2. Platform-Based Payments (PayPal, Wise)

Built on:

• improved user experience

• faster processing than banks

• still reliant on banking infrastructure

3. New Payment Models

Built on:

• digital wallets

• identity-based payments (@handles)

• simplified global infrastructure

PayPal: Strengths and Limitations

Strengths

• widely accepted

• easy to use

• strong brand recognition

Limitations

• payment holds

• fees (especially cross-border)

• account restrictions

• limited control over funds

PayPal works well — but can create friction for:

• creators

• freelancers

• high-risk businesses

Wise: Strengths and Limitations

Strengths

• transparent pricing

• better exchange rates

• efficient bank transfers

Limitations

• still bank-dependent

• not designed for creator workflows

• limited flexibility in some use cases