Are you a PayPal user wondering, “Does PayPal work in Canada?”—the answer is yes. PayPal is a widely used digital payment platform in Canada, allowing users to send and receive money, shop online, and conduct business transactions. However, while PayPal is free for most domestic transactions, certain services—such as international transfers and currency conversions—come with fees.
In this guide from our team at KnightsbridgeFX, we’ll walk you through how PayPal works in Canada, the costs involved, and alternative payment options that may better fit your needs.
How PayPal Works in Canada
PayPal enables Canadian users to:
- Send and receive money within Canada and internationally.
- Link a Canadian bank account, credit card, or debit card for payments.
- Make online purchases from local and global merchants.
- Accept payments for business transactions or freelance work.
Setting Up a PayPal Account in Canada
Getting started with PayPal in Canada is simple:
1. Visit the PayPal Canada website and click “Sign Up.”
2. Choose between a personal or business account.
3. Provide your details, including your name, email, and phone number.
4. Link your Canadian bank account, Mastercard, or credit/debit card.
5. Verify your email and start using PayPal.
How to Send Money with PayPal in Canada
You can send money domestically or internationally in just a few steps:
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1. Log into your PayPal account.
2. Click on “Send & Request.”
3. Enter the recipient’s email or phone number—whether it’s a business or friends and family.
4. Enter the amount and select a payment method (PayPal balance, linked bank, or card).
5. Review and confirm the transaction.
Where Can You Use PayPal in Canada?
Many Canadian businesses and online retailers accept PayPal payments, including:
- Walmart
- Best Buy
- eBay Canada
- Airbnb
- Netflix and other subscription services
PayPal is also a popular option for freelance payments, bill payments, international money transfers, online goods and services payments, and direct deposit payments.
PayPal Fees in Canada
While sending money within Canada is free when funded through a PayPal balance or bank transfer, some transactions may include fees:
Consumer Fees
| Transaction Type | Fee |
| Domestic personal payments (bank or balance) | Free |
| Domestic personal payments (credit/debit card) | 2.90% + $0.30 CAD |
| Sending money to the U.S. (bank or balance) | $2.99 CAD |
| Sending money internationally (outside the U.S.) | $4.99 CAD |
Merchant Fees
| Transaction Type | Fee |
| Domestic business payments | 2.90% + $0.30 CAD |
| International business payments | 1.00% – 3.90% + fixed fee |
Note: PayPal applies currency conversion fees when receiving money in a different currency.
How Long Do PayPal Transfers Take in Canada?
- PayPal to PayPal transfers – Instant
- Bank transfers to PayPal – 3-5 business days
- Withdrawals from PayPal to bank – 1-3 business days
Alternatives to PayPal in Canada
If you frequently send money internationally or need lower transaction fees, you may want to consider other platforms who offer lower fees or different features:
- Wise – Offers lower exchange rate margins and transparent fees for international transfers.
- Payoneer – Ideal for freelancers and businesses receiving global payments.
- Interac e-Transfer – A popular choice for domestic transactions in Canada.
Final Thoughts
PayPal is a trusted and widely used payment method in Canada, making online payments, money transfers, and business transactions simple. However, its fees—especially for international transfers—can add up.
If you frequently send money abroad or need better exchange rates, alternatives like Wise or KnightsbridgeFX may save you more in the long run. For international money transfers, KnightsbridgeFX provides better exchange rates than PayPal and banks. Start saving today with lower fees and competitive rates!
FAQs About PayPal in Canada
Can I use PayPal in Canada without a bank account?
Yes, but you will need to link a credit or debit card to send or receive payments. Without a bank account, withdrawing funds may be more limited.
Does PayPal charge currency conversion fees in Canada?
Yes, PayPal applies a markup on exchange rates when converting currencies, making it more expensive than services like KnightsbridgeFX for international transactions.
Is PayPal safe to use in Canada?
Yes, PayPal offers encryption and fraud protection to secure transactions. However, for large international money transfers, direct bank transfers or currency exchange services may be safer and more cost-effective.
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