WorldRemit and PayPal both offer a convenient online transfer service and let you send money to friends and family all around the world. But which one is the better choice for your next international transfer?
To find out, let’s compare WorldRemit and PayPal side by side to find out which offers the best exchange rates, lowest fees and fastest transactions.
The fees and rates used in this comparison are accurate as of February 11, 2019.
WorldRemit charges a transaction fee on all transfers, but the fee amount depends on multiple factors:
How much money you send.
Where you send it.
The type of transfer you send.
Bank transfers attract the lowest fees, often around $3.99 per transaction, but we recommend that you use WorldRemit’s online calculator to work out exactly how much your transfer will cost.
PayPal
PayPal’s fees vary depending on the amount you send and whether your payment is funded from your PayPal balance, bank account or your credit/debit card.
Transfers of $0 – $49.99 incur a $0.99 fee.
Transfers of $50+ incur a $2.99 fee.
Transfers of $0 – $49.99 incur a $0.99 fee.
Transfers of $50 – $99.99 incur a $2.99 fee.
Transfers of $100+ incur a $4.99 fee.
Transfers of $0 – $49.99 incur a $0.99 fee + 2.9% of the portion funded + fixed fee based on the currency.
Transfers of $50+ incur a $2.99 fee + 2.9% of the portion funded + fixed fee based on the currency.
Transfers of $0 – $49.99 incur a $0.99 fee + 2.9% of the portion funded + fixed fee based on the currency.
Transfers of $50 – $99.99 incur a $2.99 fee + 2.9% of the portion funded + fixed fee based on the currency.
Transfers of $100+ incur a $4.99 fee + 2.9% of the portion funded + fixed fee based on the currency.
Winner: WorldRemit
If you’re sending a transfer of less than $100, PayPal is definitely worth considering.
However, PayPal’s fee structure is quite complicated and confusing and WorldRemit will often work out cheaper when transferring a larger amount.
Which offers better exchange rates?
WorldRemit
WorldRemit adds a margin on top of the mid-market exchange rate you see listed on Google and currency conversion websites like Xe. Along with fees, this is the other way most money transfer services make a profit. WorldRemit’s margin varies from one currency to the next but often sits somewhere between 0.7% and 2%. For example, if you wanted to send a transfer to France:
If the mid-market rate is 1 USD = 0.8797 EUR
WorldRemit’s rate might be 1 USD = 0.8710 EUR
PayPal
While PayPal typically offers better exchange rates than the banks, those rates are below what you can get from WorldRemit and other online transfer services. The margin varies depending on the currency you’re sending to, but we found that it was generally around 4%. For example:
If the mid-market rate is 1 USD = 0.8797 EUR
PayPal’s rate might be 1 USD = 0.8560 EUR
Winner: WorldRemit
WorldRemit generally offers higher exchange rates than PayPal, which means that more of the money you send makes it to your recipient.
Let’s crunch the numbers: Sending $100 and $2,000 to the UK
To give you a better idea of how WorldRemit and PayPal compare, let’s look at the example of sending two transfer amounts from your bank account to a recipient in the UK. With WorldRemit the funds will be deposited into your recipient’s bank account, while PayPal will send the money to your recipient’s PayPal account.
Sending $100 to the UK
WorldRemit
PayPal
Transfer fee
$2.99
$2.99
Transaction cost
$102.99
$102.99
Exchange rate
1 USD = 0.7470 GBP
1 USD = 0.7340 GBP
Transfer speed
1 day
Funds available immediately
Total received
£74.70
£73.40
As you can see, WorldRemit offers slightly better value for money in this example. While you’ll pay the same amount to send the transfer, the higher exchange rate means your recipient will get £1.30 more than with PayPal.
Sending $2,000 to the UK
WorldRemit
PayPal
Transfer fee
$2.99
$2.99
Transaction cost
$2,002.99
$2,002.99
Exchange rate
1 USD = 0.7470 GBP
1 USD = 0.7340 GBP
Transfer speed
1 day
Funds available immediately
Total received
£747.00
£734.00
WorldRemit comes out ahead in this example as well, resulting in an extra £13 in your recipient’s account.
Which is faster?
WorldRemit
Transfer times with WorldRemit vary depending on where you’re sending money and the type of transfer you choose.
Bank transfer: Instant transfers to selected banks, but 1-3 working days when sending to other bank accounts.
Cash pickup: Available to collect instantly.
Mobile money: Instant or near-instant.
Airtime top-up: Instant or near-instant.
Home delivery: 24 hours – 7 days.
PayPal
The money you send to your recipient’s PayPal account is available almost immediately. However, if your recipient wants to withdraw the funds to their bank account rather than spend it straight from their PayPal account, this can take one or more business days.
Winner: WorldRemit
While PayPal transfers are fast and convenient, the fact that WorldRemit has multiple instant or near-instant transfer options means it wins this category.
General features
Payment methods
Minimum and maximum transfers
Delivery methods
Transfer speeds
Countries and currencies
WorldRemit
Bank transfer, credit card, debit card, Android Pay, Apple Pay
Minimum: $1
Maximum: $9,000
Bank transfer, mobile wallet, cash pickup, airtime top-up, door-to-door delivery
Within minutes
145+ countries
PayPal
Bank transfer, credit or debit card, PayPal Credit
Minimum: $1
Maximum: $10,000
PayPal account transfer
3 days
190+ countries
WorldRemit
Before you can send money overseas with WorldRemit, you’ll need to sign up for a free account online. To initiate a transfer, enter the currency and amount you want to send along with the details of your recipient. You can pay for your transfer using your bank account, credit/debit card, Android Pay or Apple Pay, and WorldRemit offers several different transfer types. However, it’s worth noting that not all transfer options are available in all countries.
PayPal
If you want to use PayPal to send money overseas, both you and your recipient will need PayPal accounts. Once you’ve signed up for an account and linked your bank account or credit/debit card, you can initiate a transfer request by entering the email address or phone number of your recipient. You can then specify the currency and amount you wish to send, provide a purpose for the transfer and then review the exchange rate and fee before submitting your transfer.
While PayPal is a competitive and convenient option for small transfer amounts, WorldRemit’s simpler fee structure and higher exchange rates see it take victory.
However, before deciding how to send your next overseas transfer, make sure you compare a range of international money transfer services to find the best deal.
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.
How does PayPal compare to sending an international money transfer with my bank?
PayPal typically offers lower fees (if you pay from your PayPal balance or linked bank account) and better exchange rates than sending a transfer through a major bank.
Can I pay for my transfer using cash or a check?
No. Neither WorldRemit nor PayPal accept cash or check payments.
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.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
How do you know if your international money transfer made it safely? Learn how to track or cancel, and find out what your rights are when it comes to sending money.
From bank transfers to specialist money transfer companies, there are several options available when you need to transfer money overseas from your bank account.
If you need to transfer money overseas using your credit card, you can do so via your bank, MoneyGram, Western Union and PayPal. This can be useful in emergency situations, but credit card transfers are usually not a cost-effective option.
If you’re looking for a secure way to send money overseas, an international bank draft could be for you — but if speed is important, consider using a money transfer service instead.
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