PayPal vs MoneyGram – which one is better for Americans?

Of the many companies that help their customers move money across borders, two of the biggest are PayPal and MoneyGram. They’re each reliable and safe, but which one will suit your situation best?

Let’s get into the details on PayPal vs. MoneyGram for sending money overseas. They each have their advantages, but for most users, it’s going to come down to fees and final cost.

Both PayPal and MoneyGram charge an exchange rate markup along with fixed fees for international transfers.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

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PayPal vs MoneyGram – general overview

PayPal is a popular money-moving company that provides a range of products and services. PayPal users create an account for free and add to their PayPal balance with a linked bank account, debit or credit card, or by incoming PayPal transfers. They can use their PayPal balance to shop online or send money to other PayPal users.

MoneyGram is a ubiquitous international money transfer company. It offers mobile wallet, bank transfer, cash pickup, and wire transfer services, among other payment methods. Like PayPal, its services are available all over the world.

Pros & cons

While you consider PayPal vs. MoneyGram for your global transfer services, here are some pros and cons you can take into account. We’ll go into detail on these services and fees later in the article.

PayPal vs MoneyGram – fees

The table below breaks down PayPal vs. MoneyGram fees for international money transfers. As you’ll see, to understand which will be more affordable, it really depends where you’re sending money to, how much, and what method you’re using to send your money.

Accounts with MoneyGram and PayPal are free to create.

Each service will present you with a clear breakdown of your exchange rate, the fees you’re paying, and the final amount in the destination currency that the receiver will get.

You can compare these side-by-side to make a clear decision of whether to use PayPal vs. MoneyGram for your international transfers.

PayPal vs MoneyGram – exchange rates

Both PayPal and MoneyGram charge a fee to exchange your money to another currency. This fee comes in addition to transaction fees they also charge.

PayPal’s exchange rate is usually 3 or 4% of the transaction amount. For example, if you send 1,000 USD to another country, that’s 30 or 40 USD. That’s a high charge.

But you won’t see that fee charged directly out of the amount you send; it’s baked into the exchange rate that PayPal uses to change your money.

MoneyGram uses the same method to charge most of its fees. Along with the markup embedded in your exchange rate, you’ll pay a transaction fee that also varies by destination.

Each company will give you a breakdown of its exchange rate and included fees before you agree to the transaction. This allows you to shop around a bit to see who’s offering the best deal for the transactions you usually need to make.

Supported countries

Let’s look at PayPal vs. MoneyGram in terms of the countries you can send money to and the number of currencies they support.

PayPal account holders can send money to more than 110 countries in 25 currencies.³⁴ Its Xoom service, which requires a separate account, sends to 160 countries.³

MoneyGram, meanwhile, supports transfers to 200 countries and territories, in more than 150 currencies.⁵ So if you’re sending money to countries around the world, MoneyGram might offer you more flexibility.

But if each service offers transfers to the currencies and countries where you need to send your money, then your decision to use PayPal vs. MoneyGram comes down to fees, transfer times, and other factors.

Transfer times

In the case of PayPal vs. MoneyGram, there’s no real reason to believe that one will be faster than the other. They’re both top money transfer companies with large networks and strong track records.

The transfer time you can expect for your transaction will depend on where you’re sending to, the amount, and the method you’re using.

Many transfers, especially digital mobile wallet transfers or those between two PayPal accounts, will be more or less instant. Others, especially those involving bank accounts, could take a few days.⁶⁷

Safety & security

MoneyGram is a safe and secure service that you can trust with your transfers. So is PayPal. It’s always important, however, to be mindful of scams and follow best practices when sending money across borders.

Frequently asked questions

We answer your frequently asked questions about using PayPal vs. MoneyGram below.

Which is cheaper: PayPal vs MoneyGram?

PayPal’s international money transfer fees are high. You may have a better time with MoneyGram, but it depends highly on the circumstances of the transfer. It’s smart to compare side by side.

Can I do cash pickup PayPal vs. Moneygram?

Only MoneyGram offers cash pickup services. You can make an account with Xoom, a member of PayPal’s corporate family, for cash pickup, bank transfers, and other services PayPal doesn’t offer.

Final verdict: Which provider is better?

The choice of PayPal vs. MoneyGram will depend on your specific needs. If you’re looking for a broader range of transaction methods, MoneyGram offers cash pickup and bank transfers under one account. With PayPal, you’ll need to use Xoom instead, unless you’re sending to another PayPal mobile wallet.

Paypal and MoneyGram will get your money almost anywhere where it needs to go, in dozens of countries and currencies. But they don’t do it for free. When you’re planning to send money abroad, it makes sense to evaluate your fees carefully, often comparing side by side.

The exchange rate, in particular, is where money transfer companies charge the bulk of their fees.

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Sources

1. International fees PayPal
2. MoneyGram - How much does it cost
3. 110+ countries PayPal + Xoom 160
4. Paypal supported currencies
5. Moneygram countries + currencies
6. Moneygram how long international money transfers take
7. PayPal how long do they take

Sources checked 03/31/2026