PayPal Exchange Rates & Currency Conversion

PayPal is an online digital wallet that allows you store various types of currencies and access inbound or outbound money transfers. Much like the major financial institutions in Canada (think of the “Big Five” banks) the company offers their users currency exchange services. With PayPal, the conversion is strictly electronic – you won’t receive your foreign money in physical cash, instead it will appear in your digital wallet. Knowing this, the currencies delivered by PayPal are still legitimate, and are often comparable to other bank offerings. Since PayPal profits on FX the same ways as banks do, via fees and exchange rate mark-ups, it’s a good idea to scout the market for the best deal. Naturally, if you use PayPal’s other monetary services frequently it could seem like a good idea to use their foreign exchange purely out of convenience.

With the advent of groundbreaking financial technology (frequently referred to as fin-tech) more and more Canadians are opting for online-only money management services like PayPal. Given this fact, there are fintechs out there that sharpen their focus to be the most competitive in the foreign exchange market. It’s within these FX-specialized digital companies where you’ll find the best exchange rate guaranteed on international money transfers.

Compare PayPal Bank Exchange Rates with Other Banks

PayPal typically offers exchange rates that are 2.5-3% higher than the rate they pay to receive the currency (from their bank). For the most accurate information on PayPal’s rates you’d have to visit their website and find a rate or contact a phone line representative. As soon as you become more informed on the types of rates that they offer, you can start comparing their rates to the competition. To lower your search time, we’ve organized the most commonly used banking institutions by Canadians (their exchange rates) on this table:

Basically every foreign exchange service provider features rate markups in their exchange rates. In truth, a markup of some degree is necessary for a FX business to continue operating. Markups essentially cover the costs to do business. PayPal and the conventional banking system have fairly high markups on their FX. Most notably, they can afford to have high markups since many of their clients don’t actively search for foreign exchange alternatives/better deals. Currency conversion companies such as KnightsbridgeFX give out a rate that’s almost 2% better than major financial institutions. How does KFX do it? KFX places a very low markup on their currency because the company accepts lower margins in order to give customers a great experience.

In today’s rapidly evolving market, there’s a wide range of currency conversion opportunities out there. As more and more options become accessible, the importance of rate and fee comparison escalates. When considering PayPal’s role as a digital wallet/online money holding account, it’s easier to see why their exchange rate offerings differ slightly from the banks.

If you’re planning on exchanging your hard earned dollars, it might be beneficial to use our currency converter to double check that you’re getting a favourable exchange rate on the transaction. The value of the Canadian dollar has risen and fallen over the years due to various economic conditions and market factors. In other words, the natural volatility of currency prices should encourage you to check the prices of currencies as often as you can.

PayPal offers foreign exchange services that are highly convenient to their frequent users. PayPal’s FX services are great for travelers, foreign business practices, offshore investments, and general international money transfers.

Unfortunately PayPal does not have any traditional brick-and-mortar branches, but you can visit them here on their website. To inquire about their rates and any other common or niche PayPal services you can reach them at 1-877-569-1116. In general, PayPal’s FX services are convenient if you’re already very familiar with their platform, although their rates may not be the most competitive.

Now that you’ve learned more about the value of rate comparisons, you’re surely aware that there are a ton of alternatives to PayPal’s foreign exchange transactions. Just as a simple example, all of Canada’s primary banks (BMO, CIBC, RBC, Scotiabank, TD) offer country to country cash transferring and dollar conversions. To find the best deal between different options you need to constantly be monitoring competitors to see what offers you can take advantage of. When you’re exchanging thousands of hard earned dollars, the act of comparison is crucial.

Planning to exchange over $2000 CAD or USD? Save hundreds with the KnightsbridgeFX foreign exchange competition-crushing rates. The best part being that KnightsbridgeFX guarantees you a rate that will be more favorable than your main banking institution.

*KFX offers zero-fee wire transfers to Canada, USA, UK, Europe, China, Hong Kong

The importance of comparing FX rates cannot be stressed enough. On the KFX website you can use a non-bank provider to exchange currency and compare rates.. Savings can add up quickly when you plan to book multiple large conversions for investing or snowbirding.

If you scroll down this page you’ll find a dynamic mid-market FX rate chart for popular currencies and their percentage change. KnightsbridgeFX’s rates put more savings back in your wallet since their values are more approximate to the market price of international currencies.

First established in 1998 under a different name, PayPal Holdings is a massively successful corporation that specializes and is known for their user-friendly financial services. PayPal (the digital wallet) was introduced to the market as an innovative paper-killer. It helped pioneer the online-only money transferring space as it helped its users circulate money without the need for physical cheques.

As of today, PayPal’s widely used for e-commerce purposes – most specifically involving payment transactions. The application’s main advantage is the fact that it’s a flexible and convenient alternative method of payment. In simple terms, PayPal can often be found as a payment method where credit cards are not applicable.

The only way to really access PayPal’s exchange rates is to sign up as a user and fund an initial account balance. Once you do so, you’ll notice that PayPal provides many different currencies that you can convert to.

PayPal’s general function is to serve as an electronic wallet, but the application itself provides clients with a few other services. Most notably:
an online invoice generator, standard business accounts, premium business accounts, and their newest venture PayPal business loans in Canada (which has yet to fully launch).

Being an online-only business, PayPal does not have an extensive lineup of financial products and services to offer unlike traditional banks. However, it’s worth looking into for the aforementioned services – don’t forget to compare their services to others to find a deal that’s right for you.

If KnightsbridgeFX is your final decision for currency conversion, essentially you are deciding to save more money.

KFX acknowledges the unfavorably high markups that are commonly found in competitor’s exchange rates and vows to provide customers with a better alternative. Not only does KFX offer amazing exchange rates, but they also have a zero hidden fee policy.

At the end of the day, booking foreign transactions with KnightsbridgeFX is a secure, simple, and cost-effective way of obtaining another country’s native currency. As long as you plan on converting more than $2000 with KFX, you’ll be saving more than any other major bank in Canada.

Need a free quote on one of our rates? Call us Toll-Free: 1-877-355-5239