Can you send money from Zelle to PayPal? (2024)

Zelle®¹ is a popular peer to peer (P2P) payment service, embedded in the digital banking systems of many US banks and credit unions, for easy - and usually instant payments to friends, family and small businesses.

PayPal®² is a global payment platform, offering ecommerce payments as well as simple P2P payments the world over.

But are Zelle and PayPal compatible? Can I send money from Zelle to PayPal in the US? This guide walks through what you need to know.

Can you send money directly from Zelle to PayPal?

You can’t directly send money to PayPal using Zelle. When you receive a Zelle payment the money is automatically deposited to your linked US bank or credit union account, rather than held as a Zelle balance³.

This means that if you’re sent a Zelle payment the funds will deposit instantly to your bank account, and you’ll need to set up a separate step as a workaround if you want to then move the money to PayPal.

Why are Zelle and PayPal not compatible?

Zelle and PayPal are different companies, and they work in a different way. For one, you can’t hold a balance with Zelle. You need to link your Zelle account to a debit card issued by a US bank or credit union, or log in using your normal online banking, and any money you’re sent will be deposited to your linked bank account.

You can’t link Zelle to PayPal, so to move money from one account to the other you’ll need to use your bank as a middleman.

Alternative ways of sending money from Zelle to PayPal?

Although you can’t send money directly from Zelle to PayPal, there are ways to use the systems together with an extra step or two.

Usually this will mean using your bank - linking both Zelle and PayPal to the same account to facilitate transfers. The other solution which may be available for some people would be to link a PayPal debit card to Zelle - but this isn’t always available, and Zelle may not recognise a PayPal card because of its terms of use⁴.

This guide walks through linking PayPal and Zelle to your bank account and making a transfer that way - plus a quick look at Wise, a smart alternative if you’re trying to send money to a PayPal account held outside of the US.

Link Zelle and PayPal to the same bank

The main workaround if you want to use Zelle and PayPal together is to link both to the same bank or credit union account. Your account must be in the US, and you’ll need to have a debit card linked to it.

In many cases, Zelle is already built into the online and digital banking service your bank or credit union provides. If not, you may need to link Zelle to your bank within the Zelle app instead.

This can usually be done when you create a Zelle account. You’ll need to pick your bank from the Zelle list, and then you’ll be taken to the bank’s own secure site.

There you’re prompted to enter your online banking details and password, before being automatically returned to the Zelle app or site⁵.

To link your bank account to PayPal, take the following steps⁶:
Log into your PayPal account and go to Wallet Click Link a card or bank, then Link a bank account. Search for your bank or select it from the list. Enter your bank login details when prompted, to automatically link your account

Now, if someone sends you money with Zelle, it will be automatically deposited to your preferred bank or credit union account. Once it’s arrived you can then use the money to make your PayPal payment, by logging into PayPal online or in the app.

Sending money to a PayPal account overseas? Check out Wise

PayPal lets you send money to other PayPal accounts more or less anywhere in the world. However, the costs for sending money overseas with PayPal can be pretty steep, which might mean you can save money with Wise.

If someone has sent you a payment with Zelle to your US bank or credit union, compare the costs of your overseas transfer with PayPal compared to Wise. We’ll take a look at PayPal’s fees in a moment - with Wise you’ll get the mid-market rate, with low fees for your payment*. Wise transfers are deposited right into your recipient’s bank for convenience, too, often quickly or even instantly*. All in all, WIse might offer a cheap, convenient and speedy alternative to using PayPal for your international transfer.

How much does it cost to send money between Zelle and PayPal?

If you have someone send you a payment with Zelle it will head to your bank account automatically. According to Zelle, over 99% of participating banks have no fee to receive an incoming Zelle payment - but ultimately the costs here will depend on your own bank’s policy. Double check your account terms and conditions to be sure you know what to expect.

After that, you’ll need to arrange your onward payment to PayPal. Here the costs depend a lot on how you set up your transfer and where it’s heading.

The cheapest way to pay for a PayPal payment is using a linked bank account - that’s what we’ll look at here. If you’re planning on paying for PayPal with a card, different fees can apply so do weigh them up before you proceed.

Service	PayPal US fee⁷
Sending a domestic payment from a bank account to a US PayPal account	No PayPal fee
Sending an international payment from a bank account to a PayPal account overseas	5%, from 0.99 USD to 4.99 USD + currency conversion if needed
Currency conversion	3% or 4% where required

Common questions about sending money from Zelle to PayPal

How long does it typically take for the transfer to complete?

If you’re already a Zelle customer, funds sent to you arrive more or less instantly in your bank or credit union account. If you’re new to Zelle it may take 1 to 3 business days to clear.

Once you have your money you can send it on with PayPal. PayPal transfers may take a day or two to be processed, depending on the bank you’re paying from.

Can you use the same bank account linked to both platforms for easier transfers?

Yes. Linking the same bank or credit union account to both Zelle and PayPal can be a workaround if you want to use the services together. Have Zelle payments deposited to your bank, then use the money to fund your PayPal transfer once it arrives.

How long does it take to transfer money from Zelle to a bank and then to PayPal?

Zelle payments to a bank are often instant, as long as you’re already signed up for a Zelle account. PayPal transfers from your bank to your recipient may take a few days, depending on the details of the payment.

Are there limits on how much you can transfer between these providers?

If you’re using Zelle through your online banking your own bank might have limits on how much you can receive. Through the Zelle app the receiving limit is 5,000 USD a week⁸.

PayPal doesn’t usually have limits on the amount you can send if you have a verified account, but you might find you’re set a maximum of 10,000 USD per transfer, for security reasons⁹.

Can Zelle send money to a PayPal email?

You can’t send from Zelle to a PayPal email directly. Instead, you’ll need to use Zelle to receive your money in USD, and then send it using PayPal. If you’re sending your payment to a PayPal overseas account bear in mind that costs apply. Using a different intermediary service, like Wise, may mean you pay less in the end.

Are there any risks in transferring money from Zelle to PayPal through a bank?

When you link your bank to a provider like PayPal or Zelle, you go through a secure verification process. This should mean that any payment to or from your account processes safely. Use your common sense - as with all financial matters - as criminals can target users of financial apps with scams and other fraudulent activities.

Can you reverse a transaction from Zelle to PayPal once initiated?

You can not usually cancel or reverse either a Zelle payment¹⁰ or a PayPal¹¹ payment. Both are instant services, so more or less as soon as you confirm a transaction, the money is deposited.

The only common exception would be if your recipient is not yet signed up to the service - Zelle or PayPal for example. In this case you may be able to contact the app and ask to stop the transfer. Check all the details of your payment carefully before you transfer, to be on the safe side.

Zelle and PayPal are both very convenient services for peer to peer transfers in the US. However, the two apps don’t work together, which means you need to involve your bank to move money from one to the other.

If you’re sending a payment overseas, you may prefer a service like Wise which can be used with your bank or debit card, for low cost international payments to bank accounts in 160+ countries.

Sources:

Sources checked on 06.19.2024

*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.