XE vs PayPal
We take a look at two well-known money transfer services to see which will get your money there cheaper and faster.
PayPal is one of the most well-known payment methods globally, but how does PayPal's international money transfers fair when compared side-by-side to XE? Let's find out.
The fees and rates used in this comparison are accurate as of 13 March 2019.
Which has lower fees?
XE doesn't charge fees on international money transfers, however, it does warn you that some third parties might.
Check the fees of all the providers involved in your transaction.
PayPal has a flat fee structure, that's dependant on the amount you're sending:
- If you're sending $0-$49.99, the fee is $0.99.
- If you're sending $50-99.99, the fee is $2.99.
- On all transfers $100 or more, the fee is $5.99.
If you pay by credit or debit card, you'll be charged an additional 2.6%, plus a small fixed fee that changes based on the currency.
XE never charges a fee, while PayPal charges a fee on all transaction amounts. This makes XE the clear winner when it comes to fees.
Let's crunch the numbers: Sending $1,000 to the Philippines
Let's compare what a $1,000 transfer to the Philippines looks like with both XE and PayPal to see which provider puts more money in the receiver's pocket.
Sending $1,000 to the Philippines
|Exchange rate||1 AUD = 36.3 PHP||1 AUD = 35.9 PHP|
|Transfer speed||Same day||1 day|
|Total Philippine Peso received||PHP36,320.34||PHP35,689|
|Receiver gets||PHP631.34 more||PHP631.34 less|
XE is more cost effective in this insistence, saving you PHP631. It doesn't charge any fees and its Philippine peso exchange rate is better than PayPal's in this instance.
Which offers better exchange rates?
XE adds a margin to the exchange rate. It varies across the currencies, but it's typically between 0.4% and 1%.
Keep in mind that the exchange rate you'll pay when using XE is not the same as the rate displayed on XE's currency converter tool. That tool is a live feed of the mid-market rates, not XE's exchange rates.
PayPal also adds a margin, but it's a flat percentage markup. If you're transferring to US or Canadian dollars, it's 3.5%, while to all other currencies, it's 4%.
If you're transferring to another currency within your PayPal account and it isn't a purchase, the margin is lowered to 2.5%.
Both providers add a markup to the mid-market exchange rate, but generally speaking, XE's markup is lower. PayPal's markup is quite high and you're more likely to find a better rate elsewhere.
Which is faster?
The majority of XE transfers are completed within the same day, but some transfers can take longer. When you set up your transfer, XE will give you an estimated transfer completion date.
How long PayPal transactions take depend on whether you're just moving money between PayPal accounts, or between bank accounts. It can take over a week to get the money to the recipient's bank account, but is considerably faster to send it to their PayPal account.
XE is more consistent and faster in many situations.
|Payment methods||Receiving Options||Max and Min||Transfer speeds||Currencies|
|XE||Bank transfer||Bank account||Minimum: $1
|1 day||40+ currencies|
|PayPal||Bank transfer, debit card, credit card, Paypal credit||PayPal transfer, bank account||Minimum: $1
|1 day||90+ currencies|
Set up your XE account, then get a quote for your transfer. Once you've agreed on the details of the transaction, you send your payment to XE and your money will be sent on from there.
You must have a PayPal account to transfer through PayPal. Once you've set it up or logged in, you go to the "send money" section and enter the transfer details. PayPal will then complete the transaction.
Overall, XE is a better choice when looking to do an international money transfer. XE has no fees, and their exchange rates are better than PayPal's. By using XE, you can save money and get more for your Aussie dollars.
However, if XE doesn't support the currency or country you want to send to, it's most likely PayPal will have it.
Looking for more options?
Use our comparison calculator below to weigh up the fees, exchange rates and other details of money transfer providers out there.
International Money Transfer OffersImportant Information*
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.
Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.
Sign up for a new account and receive a $50 Myer gift card when you transfer $10,000 or more.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
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