PayPal Alternatives for Sending Money Abroad

Send money overseas with WorldRemit to take advantage of bank-beating exchange rates

Updated Jul 09, 2024

By RemitFinder

Conclusion

When it comes to online international money transfers and payments, PayPal is one of the many options available.

to go through.

However, you may end up losing money due to PayPal's high transfer fees and lower exchange rates. Given that, you may want to consider alternatives to PayPal if you need to send money abroad.

In this blog post, we will discuss some of the best PayPal alternatives for sending money internationally. This will help you weigh the pros and cons of various options better, and help you find the right option for your needs.

An image of a person using a laptop computer with floating currency symbols with the title - PayPal Alternatives for Sending Money Abroad

What Is PayPal?

Since its launch in the mid-2000s, PayPal has been revolutionizing digital payments worldwide. Now servicing an impressive 200 countries and more than 300 million customers, this global financial powerhouse is more than just a popular e-commerce platform; it is also trusted as a secure online wallet for personal or business transactions of any size.

With simple registration on either the PayPal website or mobile app (available free to download on Android or iOS devices), anyone can send money quickly and easily with their bank account, credit card, or debit card, making everyday payments effortless.

PayPal customers can enjoy the convenience of digital payments for everyday and special occasion needs. With a personal or business account, you'll be able to send money quickly to friends and family.

Plus, PayPal provides additional secure payment options like their Digital Wallet, in-store purchases through PayPal Here POS system, buyer protection on online purchases, and pay in three installments at millions of retailers worldwide.

PayPal provides many useful and convenient payment solutions that include international money transfers.

There's also PayPal credit, which gives the user access to funds 24/7 from anywhere via virtual credit cards and physical debit/credit cards. With so many convenient PayPal options, it's never been easier to pay securely online.

How Much Does It Cost to Send Money Internationally through PayPal?

PayPal's international transfers make sending money abroad a costly affair. This is primarily due to the below 2 reasons:

High transfer fees
Low exchange rates

Let's consider both of these factors in a little more detail.

PayPal Transfer Fees

If you send international money transfers with PayPal whereby currency conversion is necessary, you will have to pay a 5% transfer fee based on the amount you send.

The transfer fee mentioned above is subject to minimum and maximum fees of USD 0.99 and USD 4.99 per money transfer.

PayPal Exchange Rates

When you send money overseas with PayPal, your transaction will be cleared with PayPal's retail exchange rate that generally comes with a 3-4% FX Markup over the interbank or mid-market exchange rate.

Putting the above 2 factors – PayPal's transfer fees and exchange rates – together means that you will likely lose money on your international money transfers sent via PayPal.

For example, if you send a USD 1000 money transfer from US to the Philippines, you will have to pay USD 5 transfer fee plus receive a 3-4% inferior exchange rate.

An image of a cell phone with the PayPal mobile app loaded on it

The above factors, therefore, add considerable costs if you are looking to move funds between countries using PayPal.

PayPal's high money transfer fees and low exchange rates mean you get less for your overseas money transfers with them.

How Long Does It Take to Send Money Internationally through PayPal?

If you send money using PayPal Standard transfer option, your funds are typically processed within 3-5 business days.

PayPal also has an Instant Transfer option whereby the recipient may get the money within minutes or the same business day.

With PayPal you can choose to send money with either Standard delivery speed or Instant Transfer option.

What Are the Alternatives to PayPal?

Even though PayPal is a convenient way to send money overseas, it is an expensive one. Do not get stuck with hefty costs on international money transfers with PayPal.

There are several good options to send money overseas with breaking the bank. The best alternatives to PayPal are specialist money transfer companies that you can use for quicker and secure international money transfers, but without PayPal's high transfer fees and low exchange rates.

If you are looking for a better PayPal alternative to send money internationally, below are our top picks.

Revolut

Revolut is a fintech startup that has evolved into a major financial platform that allows customers to do mobile banking, make payments and purchases and send international remittances. You can also order Revolut cards which are fully customizable to your needs.

With Revolut, you can send money internationally from 35 countries to more than 150 destinations worldwide in more than 40 global currencies. The company continues to expand into newer markets, so just in case your corridor is currently not supported, it may be in the future.

You will get a competitive exchange rate with Revolut, but may have to pay transfer fees. The fees are transparent so you know at all times how much will you be paying. The good news is that there are several ways to reduce or even eliminate fees; these include account upgrades and exclusive promotions for RemitFinder users.

You can also send very high amounts with Revolut. For example, UK and EU residents can send up to GBP 250,000 per transaction. Similarly, money transfers from and to Japan have a JPY 1 million limit per transaction.

One of the best parts about Revolut is very quick international transfers. Most Revolut money transfers finish within seconds or minutes. This makes Revolut a perfect partner to rely on when you need to send international payments in a rush.

Finally, flexible payment and delivery methods, attractive promotions, strong focus on safety and security and very good customer reviews and feedback further contribute to the suitability of Revolut for your international remittance needs.

Wise (formerly TransferWise)

Wise is revolutionizing international money transfers with an impressive 12 million users across the globe already signed up. With low fees and fast transactions, it's no wonder why many are choosing Wise for their overseas money transfers.

With Wise, you'll get the best exchange rate without high markups. Plus, their convenient and secure app makes it easy to manage your money-transfer needs on the go.

With more than 59 supported countries for sending up to 80 different currencies at great rates through multiple payment methods (if speed is a priority), Wise has you covered.

Additionally, Wise gives you more freedom of choice with their multi-currency account so holding many foreign currencies simultaneously in one place is not an issue anymore. Wise has all bases covered for hassle-free transactions.

Remitly

Remitly helps connecting families and friends around the world with easy and quick international money transfers. Whether you are an immigrant or want to stay connected to your family in a remote location, Remitly offers low fees, fast transfers, and a vast network of supported countries.

With Remitly, sending money to your loved ones in more than 100 countries around the world has never been easier. Choose from 21 available sending countries and multiple delivery methods ranging from bank deposits and cash transfers to mobile money or home delivery.

Exchange rate margins range between 0.5% and 1.5%, and you can choose between Remitly's Express (faster with higher costs) or Economy (slower but lower cost) money transfers.

The flexibility to select different transfer speeds and several delivery options depending on the destination country makes Remitly a good choice. Plus, you get access to attractive prices for new customers, including special promotions and referral bonuses when referring friends.

XE Money Transfer

XE is the perfect choice for international payments and money transfers. With low fees, competitive exchange rates, support for 139 currencies in 220 countries and territories, you have a strong partner in XE for your international money transfers.

XE charges no transfer fees on amounts of USD 500 or more. This makes XE a great choice for making the most of your money as you get very good exchange rates and pay no fees as long as you send above a minimum threshold amount.

Your recipient's bank account will be directly credited with your payment in minutes or up to four business days, depending on what you pay with: a bank account, credit card, or debit card.

You can rest assured that XE offers excellent value as their FX Markup ranges from just 0.5% to 2%. Plus, there are no limits to the amount of money you can send overseas with XE. Do not look anywhere else when sending big amounts abroad, and save time and money by choosing XE.

Panda Remit

Panda Remit is a relatively new money transfer company on a mission to help people send money overseas easier, faster and cheaper. Panda Remit makes international remittances easy and affordable with low-cost international money transfers.

With more than 30 countries supported, a variety of payment methods (like bank accounts or credit cards) at no extra charge, highly competitive exchange rates, referral bonuses, and promotional rates for new users, Panda Remit is certainly an attractive choice for your overseas funds transfer needs.

Another major plus of Panda Remit is speedy transfer times. Most of your money transfers with Panda Remit will finish in as quick as two minutes. And if that wasn't enough, Panda Remit even provides you with a 100% satisfaction guarantee just in case of any issues.

Join Panda Remit today and explore how much easier sending funds abroad can be.

WorldRemit

WorldRemit is another well-known global brand when it comes to international money transfers with a strong support for numerous global currencies. You can send money from 50 countries to 130 global destinations in the world's most popular currencies.

With competitive exchange rates and relatively low and transparent fees, you will get value for your money with WorldRemit. To save further, you can use WorldRemit's exclusive promotions for RemitFinder users whereby you can get your first 3 transfers free of cost.

One of the biggest strengths of WorldRemit is very fast money transfers. Most WorldRemit international money transfer transactions are instant, and the ones that cannot be completed instantly will get processed within 1-2 business days. This makes WorldRemit a great choice if you wish to send money overseas urgently.

Finally, WorldRemit offers tremendous flexibility when it comes to payment as well as delivery methods. You can pay for your transfer in a variety of ways including local payment methods for many countries. Similarly, you can choose to pay your recipient overseas in many possible ways.

These are some of our top picks for sending money internationally when you do not want to use PayPal.

That said, there are plenty of other money transfer companies that you can rely on. They all comes with various strengths and unique advantages that may make them a perfect fit for your next money transfer.

Rely on RemitFinder's real time remittance comparison engine to quickly and easily compare numerous money transfer companies. Simply choose your source and destination countries, enter your transfer amount and hit Search. RemitFinder compares many money transfer operators and presents you with a detailed comparison in an easy to understand table form.

Conclusion

PayPal has revolutionized digital payments and offers convenient international money transfers to customers worldwide. However, international funds transfers with PayPal come with high fees and low exchange rates.

What are your alternatives to PayPal? To save money on your overseas money transfers, we recommend relying on money transfer companies that specialize in moving money abroad quickly and efficiently.

And the best part is that unlike PayPal, you will not have to pay high fees and get lower exchange rates with money transfer companies. All this means that you can save more on your international remittances sent with money transfer specialists.