We put these well-known services head to head to find out which one offers the best value on international money transfers.
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.
Quick verdict
The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by finder.com.
Exchange rates are volatile and change often. As a result, the exchange rate listed on finder.com may vary from the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention finder.com before you commit to a brand.
Which has lower fees?
WorldRemit
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.
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 an hour | 145+ countries |
| PayPal | Bank transfer, credit or debit card, PayPal Credit | Minimum: $1 Maximum: $10,000 |
PayPal account transfer | 3 - 5 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.
Bottom line
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?
Use the comparison calculator below to compare the fees, exchange rates and transfer times of a range of money transfer services.
The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by finder.com
Exchange rates are volatile and change often. As a result, the exchange rate listed on finder.com may vary from the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention finder.com before you commit to a brand.
