Finder makes money from featured partners, but editorial opinions are our own.
Advertiser disclosure
MoneyGram vs. Western Union vs. PayPal
We put three major providers to the test when it comes to sending cash overseas.
International money transfers are no longer a game for only tried-and-true players like Western Union and MoneyGram. Newer companies, like PayPal, promise to undercut the competition to earn your business. Here we compare three major players — MoneyGram vs. Western Union vs. PayPal — to see which one offers the better deal.
How do they work?
MoneyGram, Western Union and PayPal each offer an easy online process to exchange and send money around the world.
MoneyGram and Western Union
The way you go about sending a transfer with MoneyGram is nearly indistinguishable from the same process with Western Union.
So much, in fact, that we can describe them both in one shot: You go to their sites, enter how much you’re transferring and to where and see how much you’ll pay for the exchange.
With either service, you also have the option of visiting an office, calling or using a mobile app to initiate a transfer. And once complete, they convert and deliver your money to a bank account or for cash pickup at locations worldwide.
PayPal
To transfer money through PayPal, you’ll need to create a free PayPal account.
You’ll send a transfer to your recipient’s PayPal account, funding the transfer with your PayPal balance, bank account, credit or debit card or PayPal Credit.
After your recipient receives the money, they can either keep the funds in their PayPal account or withdraw the money to their bank account.
Who offers better exchange rates?
To understand who offers better exchange rates, you’ll need to first look at the midmarket rate. This is the true exchange rate that averages the buying and selling rate of a global currency — and the rate banks and transfer services use when they trade among themselves.
MoneyGram
MoneyGram skews exchange rates for a profit. Depending on where you’re sending your money, the exchange rate could be 5% or more above the midmarket rate. This means hundreds of dollars on a large transfer diverted to MoneyGram’s pockets.
Western Union
Like MoneyGram, depending on the country you’re sending money to, a typical exchange rate at Western Union could be up to 6% above the midmarket rate. If you’re sending a large amount overseas, this is a lot of money straight into Western Union’s coffers.
PayPal
To calculate the exchange rate it offers to customers, PayPal takes the midmarket rate and adds a 2.5% margin. The best way to find accurate exchange rates is by using PayPal’s currency exchange calculator, which you can find after you log in to your account.
Winner: PayPal
For your typical overseas transfer, you’ll get a stronger exchange rate with PayPal.
Who offers lower fees?
The most effective way to compare MoneyGram, Western Union and PayPal is to look at a case study.
Case study: Sending $1,000 to Germany
Malcolm wants to send $1,000 to his sister, a military wife living at the Ramstein Air Base in southwestern Germany.
He’s tempted by the convenience of his local bank, despite its reputation for high fees and weak exchange rates. Before he decides, he compares how much he’ll pay to deposit the money to his sister’s bank account with MoneyGram, Western Union and PayPal.
| MoneyGram | Western Union | PayPal | |
|---|---|---|---|
| Transfer fee | $4.99 | $5 | $33,99 + 0.35 EUR |
| Exchange rate | 1 USD = 0.9167 EUR | 1 USD = 0.8652 EUR | 1 USD = 0.9451 EUR |
| Transfer speed | 4 business days | 6 business days | 1 business day |
| Total received | 912.12 EUR | 860.87 EUR | 912.62 EUR |
Malcolm analyzes his options to understand how the complexity of fee structures and transfer options ultimately affect how much he’ll pay. There’s no question that PayPal offers the strongest exchange rate, but because its transfer fee is a percentage of the total transfer amount, Malcolm will pay the highest fee by going with PayPal.
If time isnt on Malcolm’s side, PayPal wins again with a delivery time up to five days sooner than MoneyGram or Western Union.
Ultimately, he’ll need to weigh which element is more important before making his transfer.
Who’s faster?
MoneyGram
Delivery speed varies by transfer option, with cash transfers in person or by phone delivered in minutes — at higher costs. MoneyGram’s cheaper options take two to four business days for receipt.
Western Union
Like MoneyGram, delivery speed with Western Union too varies by transfer option. At an agent location or by phone, your transfer could be delivered in minutes — at higher costs. Your cheapest options could take five days or longer, depending on the country.
PayPal
With PayPal, transferring among existing PayPal accounts is instantaneous. Payments from your PayPal account to another bank account are delivered by the next business day.
Winner: PayPal
Whichever way you send your money, it’ll get to your recipient more quickly with PayPal. For deposits to an account, up to four days sooner.
Who offers more options?
| Payment Methods | Minimum and maximum transfers | Delivery methods | Transfer speeds | Countries and currencies | |
|---|---|---|---|---|---|
| MoneyGram | Bank account, credit or debit card, cash | Minimum and maximum varies by country | Bank transfer, cash pickup, other options by location | 2–4 days | 190+ countries and 45+ currencies |
| Western Union | Bank account, credit or debit card, cash | Minimum and maximum varies by country | Bank transfer, cash pickup, e-wallet | Varies from minutes to 5+ days | 200+ countries |
| PayPal | Bank transfer, credit or debit card, PayPal credit | Minimum varies by country (about $0.02); maximum $10,000 per transfer | PayPal transfer, bank transfer | Varies from minutes to 1 day | 202 countries |
Bottom line
That you’ll get stronger exchange rates with PayPal is clear-cut. But depending on how much you’re sending, you could pay higher transfer fees with PayPal. Then if your recipient doesn’t have a bank account, MoneyGram’s or Western Union’s cash pickup may be your best option.
Ultimately, you’ll want to compare money transfer specialists to find a provider that’s right for your situation.
Compare other transfer services
Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
{"niche":"USFMT"}
1 - 12 of 12
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
{"niche":"USFMT"}
Are you visiting from outside the US?
More resources on Finder
More guides on Finder
-
FedNow: What is it and how it works
The Federal Reserve is launching its own instant-payment system called FedNow, advertising a staggering delivery speed of seconds.
-
How do international money orders work?
Using international money orders to send money overseas? Learn about better options.
-
How to send money to someone without a bank account
Transfer agents, mobile wallets and online credit card payments don’t necessarily require a bank account.
-
Instarem review
Instarem offers no-margin, mid-market rates for some of your money transfers.
-
How to receive a wire transfer
Comprehensive guide on receiving money sent via a wire transfer.
-
Sending a money transfer: What information is required?
Every money transfer service has different requirements for signing up and initiating a transfer. Find out what information is required to send money overseas.
-
Guide to bank fees for wire transfers
We cover the different wire transfers fees you could pay with 10 of the top US banks when sending money internationally.
-
Alternatives to WorldRemit
Looking for higher transfer limits and lower fees? Explore these WorldRemit alternatives to find a good deal.
-
Alternatives to Western Union
Western Union’s extensive global network comes with high fees and weak exchange rates, use these alternatives to look for a better deal.
-
Alternatives to MoneyGram
Compare MoneyGram with competitive alternatives to find the best deal for your transfer.
Ask a question
What is the cost of transferring $60 Odessa, Ukraine?
Hi Izrail,
Thanks for your inquiry.
The fees apply to money transfers vary depending on the amount of money you’re sending, where you’re sending it to and the method you use to pay for your transaction.
I hope this helps.
Kind regards,
Bella