Overview
You can also use Sokin as a local account in 4 different countries, and store currencies in many more.
🏆 Sokin | PayPal | |
|---|---|---|
Monthly Fee | No monthly fees | No monthly fees |
Exchange Rate | from 0.3% | from 3.99% |
Transfer Fees | No fees | from £0.30 / $0.30 / €0.30 |
Multi-Currency Access | 4 local accounts + hold 75 more | 0 |
Switching from PayPal to a different provider, for ongoing multi-currency management can save a lot of money.
This page will go in greater detail on what Sokin offers in comparison to PayPal for international finance. The short answer is, it simply isn't cost effective or convenient to use PayPal for international payments. You will get a worse exchange rate and pay more in fees than using a multi-currency options.
PayPal is a platform of convenience and so often used, it can be simpler to simply carry on using it.
Platform details
We've broken out the core features needed when choosing for multi-currency business provider.
PayPal is not a multi-currency provider, and more of a digital wallet. As such, we have made the appropriate comparisons for the platform.
This is an important distinction to make as a business. We recommend using alternatives to PayPal for any type of cross border payment.
Local accounts
Local accounts are used for storing and receiving currencies. With PayPal you can store currencies, and use this for spending.
If you receive money outside of a supported Sokin currency, it can be converted into a local account.
In the wider context of the market, there are companies offering more local accounts than Sokin. Airwallex offers 12 accounts, Wise offers 10 and Payoneer has access to 9.
Currency and Country | 🏆 Sokin local accounts | PayPal options |
|---|---|---|
USD: United States | Account number | PayPal wallet, no local account |
CAD: Canada | Account number, bank code | PayPal wallet, no local account |
EUR: EU | IBAN | PayPal wallet, no local account |
GBP: United Kingdom | Account number, sort code | PayPal wallet, no local account |
Looking for local accounts?
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If you want local accounts outside of USD, CAD, EUR or GBP, Sokin won't be the correct provider.
We've compiled the best multi-currency business accounts across the entire market.
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Other features
Additional features for businesses are what really sets Sokin apart from PayPal.
This being said, with an API PayPal does support a greater number of batch payments.
The benefit is likely outweighed by the cost though.
Then with Sokin, you'll get access to payroll management and can earn interest on balance boosts. Revolut Business and Wise Business are the other two providers offering interest. Both at a slightly higher rate than Sokin, but both also having a higher starting point for the total cost of the transfer.
Features | 🏆 Sokin | PayPal |
|---|---|---|
Batch payments | Up to 5,000 batch payments from one CSV, can be automated for regular payments | Up to 15,000 (API) and 10,000 with a CSV upload |
Expense management and tracking | Tools can be included with API, but nothing native offered | PayPal doesn't have native integration for expense management, but can work with platforms like Zoho Expense |
Pay invoices | Pay single or multiple invoices from the account | Invoices can easily be paid in PayPal through link sharing. The issue with this is the cost |
Receive payments | Businesses can receive payments into their accounts and generate payment links | Receiving payments is the bread and butter of the PayPal offering, and you can accept payments as well |
Marketplace integration | Integrate into popular e-commerce marketplaces via Sokin Pay | Focus is on ecommerce, like Etsy, eBay and Shopify payments |
API options | API options are available and growing in-line with Sokin expansion | There's an API option, for different business sizes, called 'Hyperwallet' |
Manage payroll | Businesses can manage payroll from the account | No direct management of payroll |
Earn interest | Using Sokin's balance boost feature it is possible to earn up to 3% interest on USD, GBP and EUR balances | Not offered |
International payments with Sokin and PayPal
The convenience of PayPal, for a one-off, smaller, payment might draw businesses in.
However, using a business money transfer provider for a single transaction can be much cheaper.
We've touched on the cost of sending money through PayPal and Sokin, overall. The finer details are outlined below.
The biggest difference is the currency conversion cost. Sokin starts at 0.3%, PayPal at 3.99%. For every a $/£1000 sent, this is a difference of almost $/£40.
One area where Sokin does fall down against PayPal is the cost of receiving money, which can be up to 1.2% in some scenarios.
Service | 🏆 Sokin | PayPal |
|---|---|---|
Local transfers | No fees | No fees |
Sending money abroad | No fees | from £/$/€ 0.30 |
Currency conversion rates | Starting at 0.3% | from 3.99% |
Receiving fees | 1.2% | No fees for receiving payments |
Storing and holding currency | No fees | No fees, but 3.99% for converting |
Monthly account fees | No fees | No fees |
Setup fee | No fees | No fees |
Payment management and tracking fee | No fees | No fees |
Mass payments fee | No fees but currency conversion fees apply | from £/$/€ 0.30 PER transaction |
API
The difference in the API is pretty similar to the difference in the overall product. The API from Sokin offers more, because there is more to offer as a whole.
Sokin starts to excel beyond PayPal with the more technical elements related to API. For PayPal, there's a partnership with Hyperwallet. This is at an enterprise level, and costs can mount. Sokin is suitable for SMEs as well.
Feature | 🏆 Sokin | PayPal |
|---|---|---|
API Type | REST API | REST API |
Authentication | OAuth 2.0 | OAuth 2.0 |
Focus | Global payments and currency exchange | Online payments and e-commerce |
Payment Types | Local and international payments, including bank transfers and mobile wallets | Online payments, credit/debit cards, PayPal balance |
Currency Support | Extensive list of global currencies | Supports major currencies |
Pricing | Transparent pricing with no hidden fees | Transaction-based fees, may vary by country and transaction type |
Additional Features | Multi-currency accounts, bulk payments | Buyer and seller protection, dispute resolution, recurring billing |
Target Audience | Businesses needing global payment solutions, especially with high volume transactions | Online businesses, e-commerce platforms, marketplaces |
Hyperwallet is a specialized platform for managing and executing mass payouts globally.
It leverage's PayPal's infrastructure to offer a batch payment solution for businesses needing to send batch payments.
So whilst they are linked, you would need development work to make use of Hyperwallet, so it wouldn't be same as 'using PayPal'.
Hyperwallet's core functionality:
Mass payouts: Streamlines sending multiple payments simultaneously, simplifying processes for businesses with numerous payees.
Global reach: Facilitates payments to over 200 countries and regions in various currencies, making it suitable for international businesses.
Payout flexibility: Offers various payout options, including bank deposits, mobile money, and prepaid cards, catering to diverse payee preferences.
API integrations: Enables businesses to integrate Hyperwallet's payout system directly into their platforms for seamless payment processing.
Connection with PayPal:
Hyperwallet is a part of the PayPal family of companies. This relationship brings several advantages:
Funding source: Businesses can utilize their PayPal accounts to fund payouts through Hyperwallet, streamlining fund management.
Expanded reach: PayPal's extensive network complements Hyperwallet's capabilities, further broadening the reach of payout options.
Enhanced security: Leverages PayPal's robust security infrastructure to ensure secure transactions and protect sensitive financial data.
Choosing a winner
Sokin is a clear winner against PayPal because:
Sokin offers access to 4 local accounts and 75 IBAN accounts, with PayPal this is not an option
Sokin pricing starts from 0.3% for the exchange rate markup. PayPal prices are 3.99% plus a fixed fee
Sokin has an API option that is much more accessible than the Hyperwallet solution offered alongside PayPal
Sokin offers extras like interest rates through balance boosts
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