Western Union vs PayPal money transfers
We compare a popular provider with a digital giant to see which is better for overseas transfers.
Western Union is nearly synonymous with international money transfers. And then there’s the electronic payment giant, which also allows you to send money overseas. Which one is cheaper and faster for sending funds to friends, family and businesses outside the UK?
The fees and rates used in this comparison are accurate as of 3 March 2021.
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How do they work?
Western Union and PayPal both offer easy online processes to exchange and send money around the world.
Western Union
Go to the Western Union site site, enter how much you’re transferring and confirm how you’re sending it and how it should be received. You also have the option of visiting or calling an agent. Once you’ve approved the exchange rate and fees you’ll pay, Western Union converts and delivers your money to your recipient’s bank account or for cash pickups at locations worldwide.
PayPal
To transfer money through PayPal, you’ll need to create a free PayPal account. You then 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.
Which has lower fees?
Western Union
Western Union’s fees for sending money from the UK start from £2, but in some cases can run up to £15 or higher.
The fee varies a lot by situation – your destination country, chosen currency, amount transferred and payment method will all affect the total fee. There is typically an additional charge for credit card payments.
PayPal
PayPal charges a flat fee of £2.99, but you’ll be charged an extra fee if you’re paying by card (how much depends on the currency you’re sending to).
Winner: It depends
There are certain situations where PayPal fees will be higher than Western Union’s for the same transfer, but these tend to be very specific situations.
In most cases it’s likely to cost less in fees to send money from the UK with PayPal than Western Union. To find the actual cheaper option, though, you’ll also need to factor in exchange rates.
Compare other transfer services
Table: sorted by promoted deals first
Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
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Who offers better exchange rates?
To understand who offers better exchange rates, you’ll need to first look at the mid-market 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.
Western Union
Depending on the country you’re sending money to, a typical exchange rate at Western Union could be up to 6% above the mid-market rate. If you’re sending a large amount overseas, this means hundreds of dollars that goes straight into Western Union’s coffers.
PayPal
To calculate the exchange rate it offers to customers, PayPal takes the wholesale rate it gets from its bank and adds a 2.5% margin. PayPal updates this rate twice a day.
But because you can’t know what PayPal’s wholesale rate is, it’s difficult to determine on your own what exchange rate you’ll get. 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’s faster?
Western Union
Delivery speeds varies with transfer options. 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 | |
|---|---|---|---|---|---|
| Western Union | Bank transfer, 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; maximum £10,000 per transfer | PayPal transfer, bank transfer | Varies from minutes to 1 business 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, 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.
Frequently asked questions
Does Western Union work with PayPal?
No, you cannot pay for a Western Union transfer with PayPal. Read our guide to learn what payment methods Western Union supports.
How long can money stay in Western Union before pickup?
In most cases, Western Union will hold onto unclaimed transfers for 45 days, after which they can no longer be picked up by the recipient. If more than 45 days have passed and you are the sender, contact Western Union to arrange for a refund.
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