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Remitly vs. PayPal

Compare a well-known payments giant to the newer Remitly and see which one can give you a better deal.

PayPal is a renowned and well-known service used by millions to pay online. But that doesn’t mean it’s the best option.

The fees and rates used in this comparison are accurate as of August 6, 2019.

1 - 2 of 2
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
PayPal
Within minutes
From $0
Use PayPal to safely send money and receive payments from around the world in over 25 currencies with just an email address or mobile number. Try 3 months free of Spotify Premium when you sign up with PayPal.
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Which has lower fees?

Remitly

The Remitly fee structure is varied. Fees change depending on whether you do an economy or express transfer, what currency you’re transferring and how much you’re transferring.

Express transfers have higher fees, which tend to get higher the more you send. Slower economy transfers often stay quite low, around $2 to $4 no matter how much you send.

PayPal

PayPal charges 5% of your send amount, with a minimum fee of $0.99 and a maximum fee of $4.99.

But if you pay with a credit card, debit card or PayPal credit, you’ll be charged an addition 2.9%, plus a small fee based on the destination currency.

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Winner: Tie

There isn’t a clear winner as it depends on where and how much you’re sending. While some transfers will be cheaper with PayPal, other will have lower fees with Remitly.

Let’s crunch the numbers: Sending $1,000 to the Philippines

Let’s compare a $1,000 transaction to see which provider wins out when fees and exchange rates are taken into consideration.

Sending $1,000 to the Philippines
RemitlyPayPal
Transfer fee$0$4.99
Exchange rate1 USD = 50.58 PHP1 USD =49.7517 PHP
Transfer speedSame daySame day
Total Philippine Peso receivedPHP₱50,580.00PHP₱49,503.44
Receiver getsPHP₱1,076.54 morePHP₱1,076.54 less

Remitly saves you money in the end, as both the fee and exchange rate are better. Remitly charges a lower fee, and its Philippine peso exchange rate is better than PayPal’s.

Which offers better exchange rates?

Remitly

Remitly doesn’t have a standard rate rule, meaning the exchange rates they offer vary greatly and change daily. There’s a margin added to most exchange rates, but that margin varies from currency to currency.

For example, if you want to send money to Thailand:

  • Mid-market rate: 1 USD = 30.7275 THB
  • Remitly’s exchange rate: 1 USD= 29.89 THB

This is a margin of 2.7%.

PayPal

PayPal’s exchange rates also include a margin. While it can also vary based on the currency, on average PayPal has a higher markup.

For example, if you want to send money to Thailand with PayPal:

  • Mid-market rate: 1 USD = 30.7275 THB
  • PayPal’s exchange rate: 1 USD = 29.6451 THB

This is a margin of 3.5%

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Winner: Remitly

While Remitly’s exchange rates vary based on the currency, the margin is lower than PayPal’s overall. It’s always worthwhile comparing based on the currency you’re transferring, but it’s likely Remitly will net you a better rate.

Which is faster?

Remitly

Remitly offers an express option that will get your money to the destination within hours, if not minutes. However, it does mean you’ll pay higher fees. If you opt for the cheaper economy option, you’re looking at a transfer time of two to five business days.

PayPal

If you transfer from one PayPal account to another, the transaction is instant. For all other transactions, it generally takes one business day.

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Winner: Tie

Between the express option Remitly offers and PayPal’s quick turnaround, it’s hard to pick a winner. Both can get your money there fast – you’ll just have to be willing to pay a higher fee and/or exchange rate.

General features

Payment methodsReceiving optionsMaximum and minimum transfersTransfer speedsCurrencies
RemitlyBank transfer, debit card, credit cardBank account, cash pickupMinimum: $10

Maximum: $20,000

Within minutes30+ currencies
PayPalBank transfer, debit card, credit card, PayPal CreditPayPal transfer, bank transferMinimum: $1

Maximum: $10,000

3 days20+ currencies

Remitly

To use Remitly, you sign up for a free account using your email on the website or app. Once you’ve signed up, just enter the amount of money you want to send, your recipient’s information and your payment information. Remitly will do the rest.

PayPal

To transfer money through PayPal, you’ll need to create a free PayPal account. You can then send a transfer to your recipient’s PayPal account, funding it with your PayPal balance, bank account, credit card, 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.

Bottom line

Although it’s completely dependent on the transfer amount, Remitly is likely to beat PayPal on most transfers. But the two providers offer different currencies, and your currency may not be available on both. To get the best deal, compare other money transfer providers that send in your currency.

Looking for more options?

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.
1 - 14 of 14
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Currencies Direct (business)
24 hours
$0
Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
Currencies Direct
24 hours
$0
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
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