Western Union vs PayPal money transfers

Western Union vs PayPal: A heavyweight clash of fees, speeds and global reach.

Western Union is nearly synonymous with international money transfers. And then there's the electronic payment giant PayPal, which also allows you to send money overseas. Which is cheaper and faster for sending funds to friends, family and businesses outside Australia?

The fees and rates used in this comparison are accurate as of 24 October 2024.

Product AUFMT Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Within minutes
From $0
Get Western Union's best exchange rate and $0 fee on your first online transfer.
Western Union sends money online to 200+ countries, with competitive rates for new customers.
PayPal International Money Transfers
Best Rated Brand
PayPal logo
24 hours
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.
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Which has lower fees?

Western Union

Western Union's fees for sending money from Australia start from $1.99, but in some cases can run up to $30 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 5% of the amount sent which, which will be no less than $0.99 and no higher than $5.99, unless you're paying by card. If you choose to use a card, there will be another 2.6% fee added on top, though it could be more depending on the currency you're sending to.

Trophy icon
Winner: PayPal

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 Australia with PayPal than Western Union. To find the actual cheaper option, though, you'll also need to factor in exchange rates.

Let's crunch the numbers: Sending $1,000 and $10,000 to the UK

Let's see how Western Union and PayPal compare when sending two different amounts to the UK. In this example, we'll be using a transfer paid by a bank transfer, rather than a credit card.

Sending $1,000 to the UK
Western UnionPayPal
Transfer fee$1.99$5.99
Exchange rate1 AUD = 0.5139 GBP1 AUD = 0.4957 GBP
Transfer speedVariesUp to a week
Total British pounds receivedGBP £513.89GBP £495.74
Receiver getsGBP£18.15 moreGBP£18.15 less
Sending $10,000 to the UK
Western UnionPayPal
Transfer fee$4.99$5.99
Exchange rate1 AUD = 0.5124 GBP1 AUD = 0.4957 GBP
Transfer speedVariesUp to a week
Total British pounds receivedGBP £5,123.57GBP £4,957.35
Receiver getsGBP£166.22 moreGBP166.22 less

In this case, PayPal's exchange rates are much less than Western Union's which means less money will be recieved on the other end.

It makes a big difference on smaller transfers too, with the receiving party collecting £18.15 more compared to PayPal. It pays to look at the exchange rates and not just the fees.

Which offers better exchange rates?

Western Union

Western Union's currency exchange margins vary widely depending on the currency and the situation. In general, the margin added onto the exchange rate can vary from 2% to 6%. If you're sending a large amount overseas, this means hundreds of dollars that goes straight into Western Union's coffers.

PayPal

PayPal's margin, like Western Union, depends on what currency you're sending to. In general:

  • To USD or CAD: 3.5% added to the exchange rate
  • To other currencies: 4% added to the exchange rate

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Winner: Tie

There are no clear winners here. It all depends on the situation and either can be cheaper or more expensive than the other.

Which is faster?

Western Union

The speed of your transfer is mostly dependent on the transfer method. Cash pick-up or mobile money app deposits can be available in just a few minutes, while bank account transfers might take several days.

PayPal

PayPal money transfers can take between 3 - 5 days, depending on circumstance and destination.

If you don't already have funds in your PayPal account it might take several days to top it up, and after that it might take another few days to finish the transfer.

Trophy icon
Winner: Western Union

Western Union offers payments within minutes, although it costs extra and won't necessarily be suitable for every situation. Its bank transfers will typically take several business days to clear. PayPal's bank transfer speeds are similar, with the added burden of needing to top up or link your bank account first.

If you want to get verified and send money as fast as possible, Western Union has a clear advantage over PayPal.

General features

Payment methodsReceiving optionsMaximum and minimum transfersTransfer speedsCurrencies
Western Union
  • Bank transfer
  • Cash
  • Credit card
  • Debit card
  • Bank account
  • Cash pickup location
  • Mobile wallet
Minimum: $1

Maximum: $50,000

Within minutes130+ currencies
PayPal
  • Bank transfer
  • Credit card
  • Debit card
  • Bank account
  • Mobile wallet
Minimum: $1

Maximum: $10,000

24 hours25 currencies

Western Union

With Western Union, you go to its 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.

Bottom line

The most cost-effective and convenient option will depend on the circumstance. If you're paying by card, it's worth being aware of the additional fees this incurs at both PayPal and Western Union.

Similarly, it's worth checking the exchange rates for your currency ahead of a transfer. While PayPal's rates are fixed at a set amount above mid-market, Western Union's will vary widely from currency to currency.

Looking for more options?

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.
1 - 25 of 27
Product AUFMT Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Within minutes
$0-$4
OrbitRemit sends to over 20 countries for a flat fee and transparent exchange rate.
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000. Same-day transfers between AUD and NZD (under $100,000).
Within minutes
$0
Sign up and get a AUD$15 top-up. For new customers only. T&Cs apply.
Send money with great rates and low fees in 25+ currencies. Plan fees apply.
Within minutes
$0
Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000. Same-day transfers between AUD and NZD (under $100,000).
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Within minutes
$0
Earn 10% cashback on your first $1,000 USD equivalent in eligible international card spend with Airwallex.
Streamline global payments across 150+ countries with fast settlements and competitive rates in over 60 currencies.
Within minutes
$0

Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
24 hours
$0
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
24 hours
$0
New customers registering in 31 December 2024 can receive lower pricing on exchange rates. T&Cs apply.
Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
Wise (TransferWise)
Best Rated Brand
Wise logo
Within minutes
From 0.43%
Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.
Remitly
Best Rated Brand
Remitly logo
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
Within minutes
From $0 to $5
Send money instantly to friends and family in over 45 countries using just your mobile number.
Within minutes
From $1.99
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Within minutes
From 0.5%
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
Send Payments
Send Payments logo
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
Within minutes
$0
Earn 1 Qantas Point on every $1AUD equivalent converted in foreign currency. T&Cs apply.
Set up accounts in 11 different currencies and get rewarded for global business payments by earning Qantas Points.
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
24 hours
From $0
Open bank accounts in Australia, the UK, US, Canada, Japan and Europe. Send and receive funds with zero fees for large sums, including same-currency supplier payments.
Within minutes
$0
Revolut allows your business to move money around the world quickly and cheaply with 25+ currencies and no maximum limit transfers. Plan fees apply.
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
Within minutes
From $0
Get Western Union's best exchange rate and $0 fee on your first online transfer.
Western Union sends money online to 200+ countries, with competitive rates for new customers.
Within minutes
From $0
Send money in minutes at competitive exchange rates to the Middle East, Africa and South Asia.
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Written by

Editor

Kelly Waggoner is a senior editor at Finder. She's worked with publishers, magazines and nonprofits throughout New York City, including ghostwriting a how-to on copyediting for the Dummies series. Between projects, she toys with words, flips through style guides and fantasizes about the serial comma's world domination. See full bio

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