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MoneyGram vs Western Union vs Paypal

What’s the cheapest way to send an international money transfer from Australia to the USA? We compare MoneyGram, Western Union and PayPal.

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If you need to send money overseas from Australia, there’s now a wide range of money transfer providers to choose from. From cash pickup transfers to online payments, you’re spoilt for choice when looking for a fast and affordable way to send money overseas.

In this guide, we compared three major players in the money transfer market - MoneyGram, Western Union and PayPal - to see which one offers the best deal.

Instantly compare money transfer services today

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details

Compare up to 4 providers


The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention “Finder” before you commit to a brand.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 2,000 1 day AUD 0.00 0.7 USD
7,001
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.7 USD
7,001
SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.7 USD
7,001
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.7 USD
7,001
$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.
Go to site Show details
GBP 3,000 1 day AUD 0.00 0.7 USD
7,001
Global Reach will match any competitor's exchange rates. Conditions apply.
Get no fees for both business and personal transfers when you send your money overseas with Global Reach.
Go to site Show details
AUD 1 1 day AUD 52.00 0.699 USD
6,957
Pay no fees on your first two transfers, up to $3,000.
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
Go to site Show details
AUD 0 Same day AUD 2.99 0.695 USD
6,950
Special offers like free transfers and better exchange rates available for new customers.
Affordable transfers around the world with both express and economy options. Express transfers delievered in as little as 10 minutes for an extra fee.
Go to site Show details
AUD 1 Same day AUD 0.00 0.699 USD
6,994
Get fast transfers with no fees and a range of foreign currency tools. Go to site Show details
AUD 200 1 - 2 days AUD 50.00 0.702 USD
6,984
Exclusive: Use code FINDER10 to receive US$10 off your first transaction.
Quick and simple international money transfers with a flat 0.5% transfer fee for most transfers. Zero-margin rates on some currencies.
Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.696 USD
6,957
Special offer: Zero fees on your first 10 transfers.
Get bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Go to site Show details
AUD 1 Same day AUD 3.99 0.694 USD
6,942
Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.
An online money transfer service with cash pick-up, bank account to bank account and airtime transfers available.
Go to site Show details
AUD 1 1 - 2 days AUD 45.00 0.703 USD
6,997
Make online transfers at the mid-market rate with transparent fees in 45+ currencies. Go to site Show details

Compare up to 4 providers


The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention “Finder” before you commit to a brand.

Sending $1,000 from Australia to the USA

The most effective way to compare MoneyGram, Western Union and PayPal is to look at a case study such as the one below. Please note this is a fictional case study with the rates correct in July 2017. You should always source a quote for current rates and fees.

Malcolm sends money to the USA

Malcolm wants to send $1,000 from Australia to his aunt on the west coast of the USA for her birthday. MoneyGram, Western Union and PayPal all offer handy online calculators that estimate the cost of the transfer, so he punches in the details of his transaction to see what each company has to offer. The details of his comparison are shown in the table below:

MoneyGramWestern UnionPayPal
Transfer amountAUD$1,000AUD$1,000AUD$1,000
Exchange rate1 AUD = 0.71 USD1 AUD = 0.7331 USD1 AUD = 0.7343*
Transfer feeAUD$65AUD$10 (credit or debit card) or AUD$7 bank transferAUD$5.99(fee if funded by PayPal balance or bank account)OR AUD$5.99+ 2.6% of the portion funded + fixed fee based on the currency (fee is 3.9% of transaction amount plus a fixed charge if transfer is funded by your credit card)
Transfer methodCash pickupCash pickupTransfer to PayPal account
Processing time10 minutesWithin minutesUsually within 24 hours
Amount receivedUSD$714.02USD$733.10USD$729.99

*Based on wholesale exchange rate of 1 AUD = 0.77 USD as at 24 April 2018.

As you can see, Western Union offers the best exchange rate and fee combination of the three providers and allows Malcolm to send more US Dollars for the same amount of Australian Dollars.

The fees involved and the complexity of fee structures for this type of transaction shows that the values may vary depending on how much you want to transfer and what options you choose. This means you may need to take a closer look at each provider to work out which one offers the best deal for your circumstances.

Global agent locations for MoneyGram, Western Union and PayPal

MoneyGram

With more than 350,000 agent locations around the world, MoneyGram allows you to send money to over 250 countries and territories. The convenience of picking up cash from one of the provider’s worldwide locations makes it a popular choice,with agents including 7-Eleven, Travel Money Oz and United fuel stations.

Western Union

Western Union has 500,000-plus agent locations in more than 200 countries and territories, making it the largest money transfer service in the world.

PayPal

The biggest attraction of PayPal’s international money transfer service is that it’s completely digital. Transactions can be funded from your PayPal balance, your bank account balance or your credit card, and you can send money to anyone with a PayPal account. However if you want to send cash, you'll need to go with another service.

Transfer fees for MoneyGram, Western Union and PayPal

MoneyGram

When it comes to sending money to the USA, MoneyGram’s exchange rate is noticeably lower than those offered by PayPal and Western Union. It also charges a high transfer fee of $65 when you send AUD$1,000 to the US, but it’s worth noting that the fee changes depending on the amount you send. For example, the fee drops to AUD$35 if you send $500. It’s also important to point out that while MoneyGram may not offer the best AUD/USD exchange rate, it could still offer a competitive rate for transfers to other destinations. You can compare it to other money transfer options at any time by using the “Estimate fees” feature on the MoneyGram website to calculate the cost of your transaction.

Western Union

In our comparison, Western Union offered the best exchange rate of the three companies, resulting in a noticeable difference to the amount that arrived in the USA. In terms of transfer fees, Western Union’s $20 charge is significantly cheaper than MoneyGram and competitive with PayPal’s offering. Fees also vary depending on the amount you send, with a lower, AUD$500 transfer to the USA attracting a fee of AUD$15.The Western Union website also offers a convenient “Calculate Price” feature to help you work out the cost of a transfer and compare your options. Remember that rates and fees could change for each transfer you want to make, so it’s worth comparing a few options every time you need to send money overseas.

PayPal

Things get tricky when you need to calculate the exchange rate and fee that will apply to your transaction. The exchange rate PayPal offers is a combination of a base rate, which is based on the interbank or mid market rate, plus a currency conversion fee.

The base rate is determined by PayPal and updated frequently, however PayPal don't publish these rates on their website - you will need to log into your account to view the rate offered by PayPal on a particular currency.

The currency conversion fee is an additional fee imposed by PayPal. It works in a similar way to the exchange rate margin imposed by many money transfer providers. It's a percentage of the base rate that gets deducted and retained by the money transfer provider. PayPal's currency conversion fee varies depending on which currency you're purchasing. For transactions to the US and Canada, the currency conversion fee is 3.5%.

PayPal charges a flat transaction fee of $5.99 if you pay using your PayPal balance or bank account. If you pay for the transaction using your credit or debit card, on the other hand, it’ll be the $5.99 flat fee, as well as 2.6% of the transaction amount plus a fixed fee. Not only is this structure confusing, but the fees and charges you pay can quickly add up.

Transfer speed for MoneyGram, Western Union and PayPal

MoneyGram

When transferring money overseas with MoneyGram, your recipient can usually pick up the cash within 10 minutes.

Western Union

Similar to MoneyGram, your cash will be available for your recipient to collect within a few minutes.

PayPal

Although PayPal is completely online, it takes the longest. When sending money internationally it usually takes 24 hours.

Online money transfer companies

Before sending money anywhere around the world, it’s useful to compare the services offered by specialist online money transfer companies. These providers, such as, TorFX, OFX and WorldFirst, are specialists when it comes to moving money across international borders.

As online businesses don’t maintain branch networks, costs are kept to a minimum and can mean fewer fees for customers. These companies also trade in large volumes of foreign currency, allowing them to provide competitive exchange rates on transfers from Australia to the USA and countries around the world.

It’s quick and easy to compare money transfer providers online, so consider the services of a specialist online company before you finalise the details of your transaction.

How do I compare money transfer providers?

Remember to consider the following features when weighing up the pros and cons of money transfer companies:

  • Exchange rates. The exchange rate you receive has a huge bearing on the overall affordability of your transaction. Look for a company that regularly offers better exchange rates than its competitors, but make sure to check whether there are any hefty transfer fees attached.
  • Transfer fees. Transfer fees typically range from zero right up to around $100,so it makes sense to read the fine print and find out about any fees and charges attached to your transaction.
  • Processing times. Transfer times also vary greatly, usually from a few minutes to roughly a week, so check how long each company takes to get your money from A to B.
  • Transfer methods. Will the funds be sent direct to the recipient’s bank account or made available for cash pickup? Can you pay for a transfer using a credit card, cash or with funds from your bank account?
  • Available currencies and destinations. Some companies only offer support for a limited number of currencies and transfers to selected destinations. Check each company’s list of supported currencies and countries to decide whether it’s right for you.
  • Customer service. Check how and when each transfer provider offers customer service and support. This will give you the peace of mind of knowing that help will be on hand if you ever have difficulties with a transaction.

These key features show how important it is to compare your options when sending an international money transfer. Start comparing money transfer providers at finder.com.au today.

More guides on Finder

International Money Transfer Offers

Important Information*
Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.

Logo for SendFX International Money Transfers
SendFX International Money Transfers

SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.

Logo for WorldFirst International Money Transfers
WorldFirst International Money Transfers

Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.

Logo for OFX (Ozforex) International Money Transfers
OFX (Ozforex) International Money Transfers

$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.

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