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 18 February 2019.
Western Union's fees for sending money from Australia start from $4, 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 a flat fee of $5.99, unless you're paying by card. That means there'll be another 2.6% fee added on top, though it could be more depending on the currency you're sending to.
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 Union
PayPal
Transfer fee
$4
$6.53
Exchange rate
1 AUD = 0.5272 GBP
1 AUD = 0.5758 GBP
Transfer speed
Varies
Up to a week
Total British pounds received
GBP£525.09
GBP£572.04
Receiver gets
GBP£46.95 less
GBP£46.95 more
Sending $10,000 to the UK
Western Union
PayPal
Transfer fee
$24
$6.53
Exchange rate
1 AUD = 0.5272 GBP
1 AUD = 0.5758 GBP
Transfer speed
Varies
Up to a week
Total British pounds received
GBP£5,259.35
GBP£5,754.24
Receiver gets
GBP£494.89 less
GBP£494.89 more
In this case, PayPal's exchange rates are good enough compared to Western Union's that you'll generally save money on sufficiently large transfers.
It makes a big difference on smaller transfers too, with PayPal bringing savings of around GBP£30 to GBP£50 compared to Western Union. 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
You can look at the mid-market rate for a sense of whether or not you're getting a competitive exchange rate from a money transfer service.
The mid-market rate functions as the current official exchange rate, so by checking the current mid-market rate (you can find it online) and then comparing it next to the rate you've been quoted, you can see how much you're losing in this "hidden fee".
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 might take a week or more end-to-end, 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.
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 methods
Receiving options
Maximum and minimum transfers
Transfer speeds
Currencies
Western Union
Bank transfer
Cash
Credit card
Debit card
Bank account
Cash pickup location
Minimum: $1
Maximum: $50,000
Within minutes
138 currencies
PayPal
Bank transfer
Credit card
Debit card
Bank account
Mobile wallet
Minimum: $1
Maximum: $10,000
24 hours
25 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.
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.
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.
What are the best options for sending or receiving a large amount of money overseas? Read this $50,000 case study with exchange rates and fees comparison.
Send an international money transfer to someone without a bank account. Get it there instantly and they can pick it up in person, in cash. Get quotes now.
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