Peanut vs PayPal: Which Is Better for Paying in Argentina and Brazil?

Compare fees, exchange rates, and local payment access. See which service saves you more on cross-border payments.

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Peanut vs PayPal: Full Comparison for Paying Locally (2026)

PayPal is the most recognized name in online payments. Over 400 million accounts worldwide, buyer protection on purchases, and near-universal acceptance at online merchants make it a default for e-commerce. But sending money to Latin America or paying at local merchants in Buenos Aires or Sao Paulo is a different problem entirely — and it is one PayPal was not built to solve.

Peanut charges no fees, converts at the cripto dolar rate (5-8% better than what cards and services like PayPal offer in Argentina), and connects directly to MercadoPago and Pix. PayPal charges 3-4% on cross-border transactions, applies an unfavorable exchange rate markup, and does not support any local payment network in Latin America. For online purchases at merchants that accept PayPal, PayPal remains the stronger choice.

Quick Comparison

Exchange Rate: Cripto Dolar vs PayPal Markup

The exchange rate is where the gap between Peanut and PayPal is widest.

PayPal applies an exchange rate markup on top of the mid-market rate for international transactions. In practice, this markup ranges from 3-20% depending on the currency pair and transaction type. For Argentine peso conversions, the markup is layered on top of the MEP rate, which is already less favorable than the parallel market rate.

Peanut converts digital dollars to local currency at the cripto dolar rate — a direct market conversion that bypasses the regulated MEP rate. In Argentina, this means approximately 5-8% more pesos per dollar than the MEP (estimate, as of 2026), before even accounting for PayPal's additional markup on top of MEP.

Here is what that looks like on real transactions as of February 2026:

• $50 dinner in Buenos Aires: PayPal charges roughly $59-63 after markup and fees. Peanut charges approximately $50. You save $9-13.
• $500 in weekly spending: PayPal costs roughly $575-625. Peanut costs approximately $500. You keep $75-125 more.
• $2,000/month as a digital nomad: PayPal costs roughly $2,300-2,500 per month. Peanut costs approximately $2,000. That is $300-500 in monthly savings, or $3,600-6,000 per year.

In Brazil, the rate difference is smaller, but Peanut is not subject to the Tax on Financial Operations (IOF) — up to 3.5% on outbound transfers — that traditional services trigger. On a $1,000 outbound transfer, that saves roughly $27 compared to any service subject to IOF.

Fees: Peanut Free vs PayPal 3-4%

Peanut charges no fees on any operation. Deposits, QR payments, Pix payments, cash ATM withdrawals, and bank withdrawals are all free. The exchange rate you see is the rate you get.

PayPal charges a 3-4% cross-border fee on international transactions. This is separate from the exchange rate markup. Combined, the fee and the rate markup mean that for every $100 you send through PayPal to spend in Argentina, you lose roughly $6-24 to fees and unfavorable conversion. Additional fees apply when withdrawing from PayPal to a local bank account.

Here is the total cost comparison as of February 2026:

Local Spending: MercadoPago, Pix, and Paying in Person

PayPal was designed for online commerce between PayPal account holders. It requires the recipient to have a PayPal account, which rules out paying at a cafe, a grocery store, or a taxi driver in Buenos Aires or Sao Paulo.

Peanut connects directly to the local payment networks that locals use:

• Argentina: Scan any MercadoPago QR code at over 1,000,000 merchants — supermarkets (Carrefour, Dia, Coto, Jumbo), restaurants, cafes, kiosks, pharmacies, and street vendors. Or withdraw pesos at Red ATM locations with a cardless QR code. No DNI required, no local bank account needed.
• Brazil: Scan Pix QR codes at restaurants, supermarkets, gas stations, ride-hailing services (Uber, 99), hotels, and street vendors. Over 150 million Brazilians use Pix daily. No CPF required, no Brazilian bank account needed.

The merchant sees a normal local payment. They do not know Peanut is involved. You verify once with your passport — under two minutes for most users — and you are ready to pay.

PayPal cannot do any of this. If the merchant does not accept PayPal (and most in-person merchants in Latin America do not), you cannot pay.

Where PayPal Wins

PayPal has genuine strengths that Peanut does not replicate.

Online merchant acceptance. PayPal is accepted at millions of online stores worldwide. If you are buying something on an international e-commerce site, PayPal is likely an option. Peanut does not function as an online checkout method.

Buyer protection. PayPal offers purchase protection and dispute resolution for online transactions. If a merchant fails to deliver, PayPal can refund you. Peanut does not offer buyer protection — completed payments are final.

E-commerce ecosystem. PayPal integrates with Shopify, eBay, and thousands of online marketplaces. For sellers and buyers in the e-commerce world, this integration is valuable. Peanut focuses on local spending and person-to-person payments.

Brand recognition. PayPal has operated since 1998 and is one of the most trusted names in digital payments globally. That familiarity matters for users who prioritize an established reputation.

Open access. Anyone can sign up for PayPal. Peanut is currently invite-only.

When to Choose Peanut vs PayPal

Choose Peanut if:

• You need to pay at local merchants in Argentina or Brazil using MercadoPago or Pix
• You want the best exchange rate available in Argentina (~5-8% better than MEP, estimate 2026, significantly better than PayPal's markup)
• You are sending money to someone who does not have a PayPal account
• You do not have a DNI or CPF and cannot open a local bank account
• You are a tourist, digital nomad, or remote worker spending in Latin America
• You want to avoid the 3-4% cross-border fee entirely

Choose PayPal if:

• You are buying from an online merchant that accepts PayPal
• You need buyer protection on a purchase
• You need to receive payments from e-commerce sales
• You are making transactions within the PayPal ecosystem
• The recipient already has a PayPal account and prefers to receive there

Use both if you want PayPal for online shopping and e-commerce where buyer protection matters, but switch to Peanut when you need to pay locally in Argentina or Brazil for a better rate, no fees, and instant merchant access.

Disclaimer

The information on this page is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax treatment of digital asset transactions varies by jurisdiction and may change. Consult a qualified professional for advice specific to your situation.

All fee and rate comparisons are based on publicly available information as of February 2026 and are example estimates only. Competitor pricing, exchange rates, and features may change. Actual savings depend on the amount, corridor, timing, and market conditions. Check each provider's current pricing for the most up-to-date information.

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No fees. Better rates than PayPal for Argentina and Brazil. Instant local payments.