Business Bank accounts

Is the PayPal Business Account Right for Your Business in the Philippines?

Sanjeed V K

17.10.25

Read time 6 minutes

If you’ve ever sent or received money online, chances are you’ve used—or at least heard of—PayPal. For many Filipino freelancers, online sellers, and small business owners, PayPal was one of the first tools that made it easy to get paid from clients around the world.

Today, as more Filipino entrepreneurs go global, a PayPal Business account remains a popular option to consider. This article will help you evaluate this well-known fintech platform by covering everything you need to know about PayPal Business in the Philippines—including its fees, requirements, setup process, and main features.

While exploring your options, we’ll also introduce the Wise Business account as a viable alternative to help you receive payments like a local, send money abroad with low fees, and benefit from mid-market exchange rates if you need to convert currencies for international transactions.

Table of contents
What is a PayPal Business account, and how does it work? PayPal Business account pricing Which types of companies in the Philippines benefit most from a PayPal Business account? Limitations of PayPal Business How to open a PayPal Business account step-by-step Wise Business: A great alternative to PayPal Business?

What is a PayPal Business account, and how does it work?

A PayPal Business account allows businesses in the Philippines—from freelancers to small and medium enterprises—to send, receive, and manage online payments globally in 20+ currencies.¹

Unlike a personal PayPal account, a business account lets you operate under your business name and provides exclusive business-friendly features—all delivered on a secure platform by a fintech name that’s trusted worldwide.

Some of the primary features of a PayPal Business account include:

E-commerce checkout: Integrate PayPal into your online store to let customers pay using their PayPal accounts or with credit and debit cards—even if they don’t have a PayPal account.
Flexible payment options: Accept payments easily by sending customers payment links, QR codes, or invoices—no website required.
Global reach: Get paid by international customers from over 200 markets, and tap into PayPal’s network of millions of users to expand your customer base.²
Recurring payments: Create customizable subscription plans for your customers—ideal for businesses offering memberships, lessons, or app access.³
Dispute management: In the event of a customer dispute, PayPal provides tools and support to help you resolve issues efficiently.⁴

A PayPal Business account also helps businesses in the Philippines keep personal and business finances separate—an essential practice for maintaining tax compliance and building credibility with clients and partners.

➡️Learn the pros and cons of using a personal bank account for business in the Philippines.

PayPal Business account pricing

Opening a PayPal Business account in the Philippines is completely free. There are no annual or monthly maintenance fees, no minimum balance requirements, and no fees for closing your account.

Most of PayPal’s charges apply when you receive payments into your business account. These include percentage-based and fixed fees per transaction.

Here’s an overview of the main fees associated with a PayPal Business account:

Fee Category	Fees⁵
Account opening fee	Free
Maintenance fees	No monthly or annual fees; no minimum balance required.
Receiving payments	3.40% + 15 PHP for domestic transactions 4.40% + fixed fee for international (fixed fee depends on currency) Up to 6% + fixed fee for micropayments Varies when receiving payments from marketplaces
Sending payments	Free when sending in the same currency to another PayPal account Up to 4% if currency conversion applies 2% for PayPal Payouts (multiple payments at once)
Currency conversion fee	Up to 4%
Withdrawing funds from PayPal	To GCash: Free To Philippine bank: 50 PHP (below 7,000 PHP); Free for 7,000 PHP and above With currency conversion: 3%

Which types of companies in the Philippines benefit most from a PayPal Business account?

Although PayPal can be used for domestic transactions, most businesses and consumers in the Philippines prefer local payment channels such as GCash, Maya, or direct bank transfers.

These options typically offer lower fees and greater convenience for local payments.

Therefore, the businesses that benefit most from having a PayPal Business account are those that sell products or services to international customers—particularly in countries where PayPal is widely adopted, such as the United States, Germany, and the United Kingdom.

Another group that benefits from PayPal is businesses and freelancers in the Philippines who use international marketplaces. Many of these platforms transact exclusively in USD or other major currencies and may not support direct bank transfers.

For example, 99designs currently allows designers working on its platform to receive and withdraw payments only via PayPal or Payoneer, and solely in USD.⁶,⁷

This means that if you’re a designer in the Philippines earning through 99designs, a PayPal Business account can be pretty handy. It enables you to receive payments in USD, convert them to PHP, and withdraw funds directly to your local bank account.

Limitations of PayPal Business

While some of PayPal’s greatest advantages for businesses in the Philippines lie in international transactions, it isn’t always the most cost-effective option.

PayPal charges relatively high fees for receiving payments and currency conversions compared to alternatives. For instance, with Wise Business, receiving payments is often free, and conversions come with lower fees starting from just 0.57%.*

Moreover, Wise uses the real mid-market exchange rate for currency conversions—without any markup—whereas PayPal applies “wholesale” exchange rates, which are less favorable.⁸

This means that when you're using features that both PayPal and Wise Business share—such as payment links or invoices—Wise will often be the more cost-effective option.

Finally, PayPal does not offer its Business Debit Mastercard to account holders in the Philippines.

If you and your team need corporate cards for making online and in-store purchases worldwide, alternatives like Wise Business may be a better fit.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

How to open a PayPal Business account step-by-step

Opening a PayPal Business account in the Philippines is simple and can be completed entirely online. Before you begin, ensure you have an active email address, a valid phone number, and a bank account or card that you can link to PayPal.

Follow these steps to get your PayPal business account up and running:

Go to the official PayPal Philippines website at paypal.com/ph.
Click "Sign Up".
Select "Business Account", then click "Get Started".
Enter your full legal name, phone number, email address, and create a strong password.
Agree to the User Agreement, then click "Create Account".
Complete the security challenge if prompted.
Confirm your email address or phone number using the verification code provided.

Once your account is created, you’ll need to enter some additional information to activate it, such as:

Whether you’re an individual seller or a registered business
Your date of birth and home address
Business name, industry, business address, website (optional), and tax identification number

Finally, link your bank account or credit card so you can withdraw funds from your PayPal account. PayPal may send small micro-deposits that you’ll need to confirm to verify your bank account.

Wise Business: A great alternative to PayPal Business?

PayPal Business is ideal for those who need a broad customer reach, as it’s recognized primarily as a payment account that boasts features like Buyer and Seller Protection and payment processing for customers around the world. Wise Business takes a different approach. We make it easier for companies to get paid and pay out in multiple currencies, often with more competitive conversion fees (if at all, required). You’ll also find that Wise always uses the the mid-market rate - the rate you see on Google which also is usually more favorable than that used by other providers.

💡Are bank accounts limited to USD, EUR, or GBP options holding back your business? With a Wise Business multi-currency account, you can access over 10 local account numbers — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account. With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders.

Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
Send money to pay invoices, suppliers & contractors fast, with less fees
Always get the mid-market rate with transparent conversion fees starting from 0.57%.
Pay your bills and ad-hoc overseas expenses using the Wise Business card without hefty foreign transaction fees.
Seamless integrations with popular accounting software.

➡️Get started with Wise Business today

Conclusion

The ability to easily embed PayPal checkout into your online store is a great advantage—especially since your customers won’t even need a PayPal account to pay using their credit or debit cards. Combined with PayPal’s trusted global reputation, this makes it easier for businesses in the Philippines to sell to customers across the U.S., Europe, and other key markets where PayPal enjoys high adoption rates.

Its integration with numerous global platforms and marketplaces also makes PayPal Business valuable for Filipino freelancers and entrepreneurs using sites like 99designs or eBay, as it provides a simple way to withdraw and convert their earnings.

Still, PayPal Business has its drawbacks—most notably, its transaction and currency conversion fees can be quite high. While tools like invoices, payment links, and QR codes are handy, similar features are often available on lower-fee platforms like Wise Business. Plus, PayPal Business only allows you to send money to other PayPal users and doesn’t offer business debit cards for accounts in the Philippines.

If you want to receive payments like a local with 10+ local account details, and benefit from low conversion fees and mid-market exchange rates whenever you do need to convert currencies, Wise Business makes it simpler. It also gives you powerful tools like business cards, invoicing, and batch payments to help you manage your international finances with ease.

➡️Get started with Wise Business today

Sources:

Sources checked on: 12th October 2025

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.