Xe vs PayPal

We take a look at two well-known money transfer services to see which will get your money there cheaper and faster.

By

Isabel Sandercock-Brown

Updated

Fact checked

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PayPal is one of the most well-known payment methods globally, but how do PayPal’s international money transfers fare when compared side-by-side to Xe? Let’s find out.

Xe vs PayPal (incorporating Xoom) calculator

3 of 3 results
Updated regularly
Finder Score Fastest transfer Fee Key benefits Amount received
Xe - UK logo
8.2Great
Xe
8.2Great
Within minutes
From £0
$2,055.91
Go to site View details
Xoom logo
Not yet rated
Xoom
Not yet rated
Within minutes
From £0
$2,060.93
View details
PayPal logo
Not yet rated
PayPal International Transfers
Not yet rated
24 hours
From £0.99
$1,996.34
View details
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Finder Score for international money transfer services

To make comparing even easier we came up with the Finder Score. Fees, features and customer service across the most popular international money transfer services are all weighted and scaled to produce a score out of 10. The higher the score the better the service – simple.

Read the full methodology

Please note: You should always refer to quotes you receive from transfer services themselves directly for exact amounts as they may vary from our estimates.

The fees and rates used in this comparison are accurate as of 4 May 2021.

Which has lower fees?

With Xe, you pay £2 on money transfers below £250. The fee is scrapped for transfers above that amount.

PayPal charges you 5% of the amount you’re sending, with a minimum of £0.99 and a maximum of £2.99. If you pay by credit or debit card, you may be charged extra.

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Winner: Xe

Xe’s £2 fee for transfers under £250 is pretty low, while PayPal charges a 5% fee on all transaction amounts no matter how much, so Xe wins.

Let’s crunch the numbers: Sending £5,000 to Australia

Let’s compare what a £5,000 transfer to Australia looks like with both Xe and PayPal to see which provider puts more money in the receiver’s pocket.

Sending £5,000 to Australia

XePayPal
Transfer fee£0£50
Exchange rate1 GBP = 1.78 AUD1 GBP = 1.71 AUD
Transfer speed1-2 daysSame day
Total Philippine Peso receivedAUD$8,936AUD 8,378
Receiver getsAUD$558 moreAUD$558 less

Xe is far more cost effective in this insistence, giving your recipient an extra AUD 558. It doesn’t charge any fees as the transfer is over £250, and its Australian dollar exchange rate is much better than PayPal’s in this instance.

Which offers better exchange rates?

Xe

Xe adds a margin to the exchange rate. It varies across the currencies, but it’s typically between 0.4% and 1%.

Keep in mind that the exchange rate you’ll pay when using Xe is not the same as the rate displayed on Xe’s currency converter tool. That tool is a live feed of the mid-market rates, not Xe’s exchange rates.

PayPal

PayPal also adds a margin, but it’s a flat percentage markup. If you’re transferring to US or Canadian dollars, it’s 3.5%, while to all other currencies, it’s 4%.

If you’re transferring to another currency within your PayPal account and it isn’t a purchase, the margin is lowered to 2.5%.

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Winner: Xe

Both providers add a markup to the mid-market exchange rate, but generally speaking, Xe’s markup is lower. PayPal’s markup is quite high and you’re more likely to find a better rate elsewhere.

Which is faster?

Xe

The majority of Xe transfers are completed within the same day, but some transfers can take longer. When you set up your transfer, Xe will give you an estimated transfer completion date.

PayPal

How long PayPal transactions take depend on whether you’re just moving money between PayPal accounts, or between bank accounts. It can take over a week to get the money to the recipient’s bank account, but is considerably faster to send it to their PayPal account.

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Winner: Xe

Xe is more consistent and faster in many situations.

General features

Payment methodsReceiving OptionsMax and MinTransfer speedsCurrencies
XeBank transferBank accountMinimum: £1

Maximum: £500,000

Within minutes40+ currencies
PayPalBank transfer, debit card, credit card, Paypal creditPayPal transfer, bank accountMinimum: £1

Maximum: £1,000,000

Same day to other Paypal accounts only90+ currencies

Xe

Set up your Xe account, then get a quote for your transfer. Once you’ve agreed on the details of the transaction, you send your payment to Xe and your money will be sent on from there.

PayPal

You must have a PayPal account to transfer through PayPal. Once you’ve set it up or logged in, you go to the “send money” section and enter the transfer details. PayPal will then complete the transaction.

Learn more: Xe

Bottom line

Overall, Xe is a better choice when looking to do an international money transfer. Xe provides low-fee or fee-free money transfers and its exchange rates are better than PayPal’s. By using Xe, you can save money and get more for your money.

However, if Xe doesn’t support the currency or country you want to send to, it’s most likely PayPal will have it.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
Contributor

Isabel Sandercock-Brown was an international money transfers writer at Finder. She's written for a number of organisations, from the Salvos to Bumble. She has a Bachelor of Arts in Communications from the University of Technology, Sydney. See full bio

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