5 best PayPal Alternatives for Sending Money Abroad – 2024
PayPal is super popular for online shopping and sending money to friends and family. You can also hold foreign currency balances and transact internationally with PayPal.
While sites like PayPal can be convenient, fast – and often cheaper than banks – for sending money to people in foreign currencies, it’s worth shopping around before you choose the right provider to transact with. Whether you need to send, receive or exchange foreign currencies, there are some great PayPal alternatives who may help you save. Join us as we walk through 5 alternatives to PayPal, how they compare and why they might be better than PayPal.
Different PayPal alternatives may suit you depending on the specific transaction you want to make. To give some options, we’ll look at 5 great PayPal alternatives:
- Wise – Mid-market exchange rates, transparent fees and quick delivery
- OFX – 24/7 phone support and no transfer fee for higher value payments
- TorFX – Personal account management options
- Remitly – Payments on popular remittance routes
- Western Union – Huge agent network for convenient cash transfers
Why you should consider a PayPal alternative
PayPal is a very familiar name, with a huge presence globally, and a broad range of ways to make payments, send money and more. Sending a PayPal payment locally is usually quick and easy, and may be free if you pay with your PayPal balance or a linked Australian bank account. However, if you’re using a card or if you’re transacting internationally, fairly high PayPal fees can apply – which may mean it’s time to find a different money transfer service like PayPal which can deliver your money for a lower fee.
To be specific, if you’re sending a payment overseas with PayPal Australia, you’ll pay a transfer fee of 5%, which is capped at a maximum of 5.99 AUD. That doesn’t sound too bad, but there’s also a fee to convert your currency to the one needed for deposit – this is set at 4% when sending funds to friends or family. As this is a percentage, it can end up being the highest cost you pay for your transfer if you’re sending a larger amount – a cool 40 AUD if you were sending 1,000 AUD to a family member for example.
It’s also worth noting that this fee kicks in if you convert money within your PayPal account, too. In this case, the cost may be 3% rather than 4%, but if you’re thinking of using PayPal’s multi-currency balance facility, it’s important to realise that this charge will add up pretty quickly. We’ll look at some alternatives to PayPal which also have multi-currency account options, in case you decide it’s time for a change.
Pros of PayPal
- Huge, well trusted company with a large user base
- Send in 25 currencies to more or less any country in the world
- Funds may be deposited to the recipient’s PayPal account instantly, depending on how you pay
- Recipient can hold a balance, spend or withdraw to their bank as they wish
Cons of PayPal
- 4% currency conversion fee when sending money overseas to friends and family
- Fees of 5% for sending international transfers, and more if you pay by card
- Funds are deposited to recipient’s PayPal account rather than their bank account
Alternatives to PayPal comparison
In this guide we’ll walk through 5 international money transfer providers that compare to PayPal. We selected these companies similar to PayPal based on their transfer speed, transparency, ease of use and price – as well as any extras they have on offer, like multi-currency accounts or cards.
Here’s an overview of the PayPal alternatives we’ve picked:
| Provider | Exchange rate | Speed | Convenience |
|---|---|---|---|
| Wise | Mid-market exchange rate |
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| OFX | Exchange rate includes a markup | Most transfers are received within 24 hours |
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| TorFX | Exchange rate includes a markup | 1 – 2 working days |
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| Remitly | Exchange rate includes a markup | Varies by destination and payment type |
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| Western Union | Exchange rate includes a markup |
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We’ll work through the providers we’ve selected one by one next – here’s a quick summary of why we think they’re a good PayPal alternative to consider, depending on your specific needs:
- Wise provides multi-currency accounts and fast payments with the mid-market exchange rate, deposited to bank accounts in 160+ countries – learn more
- OFX has no transfer fee for payments worth 10,000 AUD or more, and a 24/7 phone service which you can use to discuss your transfer with a broker
- TorFX has a personal service with online payments to 50,000 AUD for personal customers
- Remitly offers payments to banks and for cash collection, on popular remittance routes
- Western Union can help if you want to get your money in cash to someone – fast
Wise money transfer
Wise offers cheap, fast international payments and multi-currency accounts for business and personal customers, to hold and exchange 40+ currencies in one place. Wise transfers are fast, and can even be deposited into bank accounts in 160+ countries instantly, and all currency exchange uses the mid-market rate with no hidden fees.
Best Wise features
Wise payments use the mid-market exchange rate with transparent fees which can be as low as 0.43% for currency conversion and when sending payments. Plus, if you’re looking for a PayPal alternative to receive, exchange or easily spend in foreign currencies, you can also get a Wise account.
Wise accounts can hold 40+ currencies, receive payments like a local in a selection of global currencies, and you can also order a linked Wise international debit card to spend seamlessly in 150+ countries.
Pros
- Mid-market exchange rate used for currency conversion
- Transparent fees you can see and compare before you make a payment
- Send to 160+ countries, direct to bank accounts
- Open a multi-currency account to get paid in foreign currencies conveniently
Cons
- Fees vary based on payment method and destination
- No cash collection options
Why you should use Wise over PayPal
Wise is a good PayPal alternative if you want to skip PayPal’s currency conversion costs. Wise always uses the mid-market exchange rate and low, transparent fees when you send a payment or exchange money in your account. Plus Wise also offers the option to hold and exchange 40+ currencies in their Wise Account – worth considering if you travel often or love to shop with a range of international ecommerce stores. Read more on Wise vs PayPal.
OFX
OFX offers international transfers as well as currency risk management services like forward exchange contracts and limit orders, to personal and business customers. Online sellers and business customers can also get a multi-currency account. It’s particularly handy for higher value transfers as there’s no transfer fee over 10,000 AUD, and you’ll have the reassurance of being able to talk through your transaction with a broker on the phone if you want to.
Best OFX features
OFX is known for its 24/7 phone service which you can use to get information, talk through your payment options, or set up more complex currency risk management tools. OFX uses an exchange rate markup which can be smaller than the one your bank – or a provider like PayPal – would use, and has no transfer fee when sending 10,000 AUD or more.
Pros
- Send in 50+ currencies, to over 170 countries
- No transfer fee when sending higher value payments
- Most payments arrive in 24 hours
- 24/7 broker service by phone
Cons
- Exchange rates include a markup
- 15 AUD fee if you send a payment worth under 10,000 AUD
Why you should use OFX over PayPal
OFX could be a good PayPal alternative if you need very high value payments or more complex currency risk management tools. Because OFX has a 24/7 phone service you’ll also be able to talk through your needs with a support agent, which can be reassuring.
TorFX
TorFX holds the highest possible credit rating and is a big hit with customers. It’s a frequent recipient of customer service awards and offers a personal broker service which lets you talk through your transaction needs by phone when you need to. As well as international transfers, TorFX has other currency risk management products for personal and business clients.
Best TorFX features
Use TorFX by phone, online or in app, to send one off or recurring payments, and to access currency services including forward contracts and market orders.
There are no transfer fees when you send a payment with TorFX. Instead, a charge will be added to the exchange rate used to convert your funds.\
Pros
- Send in 40 currencies, to 120 countries
- No transfer fee
- Personal broker service to discuss your needs
- Currency risk management options for individuals and businesses
- Make online payments up to the value of 50,000 AUD
Cons
- Exchange rates include a markup
- You’ll need to register an account to see the rates offered and compare the cost of your transfer
Why you should use TorFX over PayPal
TorFX may be the best PayPal alternative for you if you’re making high value transfers and don’t want to pay a separate transfer fee for the payment. TorFX is also celebrated for its personal service – ideal if you’re looking for in person advice.
Remitly
Remitly offers international payments globally and on popular remittance routes. You can make a Remitly payment from Australia to around 100 different countries. Where Remitly stands out against PayPal is in its range of pay out options – as well as depositing money to a bank or mobile money account, you can send funds for cash collection in many markets. There are also often different fee options – cheaper, but slower, economy transfers – or faster and more expensive express.
Best Remitly features
Send Remitly payments to bank accounts, mobile money accounts and for cash collection, with services and currencies offered varying by destination country. In some cases you’ll be able to opt to pay with a bank transfer, for an economy payment – or with a Mastercard or Visa card for an Express transfer. Express payments may arrive in minutes, while the cheaper Economy option can take 3 to 5 business days to arrive.
Pros
- Good range of payout options
- Send to around 100 countries
- Choose cheaper fees or a faster transfer depending on your needs
- Online and in-app service for convenience
Cons
- Personal payments only – no business transfers
- Relatively low transfer limits for Tier 1 accounts
- Exchange rates may include a markup, and there’s usually a transfer fee to pay
Why you should use Remitly over PayPal
Remitly may be a good PayPal alternative if you’re sending a personal payment and would rather the recipient collect the money in cash. Remitly payments have a range of fee options and delivery times to suit your personal preferences, and can often be collected in cash locally, or even sent out for home delivery in some destinations.
Western Union
Western Union is one of the oldest and best known money transfer companies globally, with a huge agent network which covers almost every country in the world. Send money online, in-app or in person, with a range of different ways to pay – and different payout options including cash collection and deposit to bank and mobile money accounts, depending on what suits your recipient.
Best Western Union features
Western Union is a great PayPal alternative if you want to pay in cash or if you want the recipient to be able to get their money in cash locally to them. It’s pretty unrivalled in its agent network, which means that your recipient is likely to be able to find a convenient location locally to get their money – often in minutes.
Pros
- Cash collection payments can be instant
- Range of ways to pay, and for the money to be received
- Send to almost every country on the planet
- Easy to use app – or an in person service at an agent if you prefer
Cons
- Exchange rate markups apply
- Fees vary and can be on the high side
- Not all services available in all countries
Why you should use Western Union over PayPal
Western Union is another strong PayPal alternative if you want to pay in cash for your transfer – or if you need the recipient to get their money in cash in the destination country. Western Union has a good customer support operation and you can always walk into an agent office to get face to face help – another bonus if you’re a fan of in person customer service.
Are the alternatives safe?
Yes. Here at Currency Shop we only review providers which are properly regulated for the services they offer, and which are safe to use.
Conclusion – PayPal alternatives
PayPal offers some great services, particularly for shopping online locally and when sending money to friends and family in AUD. However, if you’re transacting internationally, or sending a payment to someone in a foreign currency, extra fees can creep in including a 3% – 4% currency conversion fee which pushes up costs a lot.
Different sites similar to PayPal can help – which is right for you may depend on the specific service you need. We’ve looked at options like Wise which can be a great fit if you want to send money to a bank account overseas, with the mid-market exchange rate – or if you want to hold and exchange a foreign currency balance. Or if you’re looking for alternatives to PayPal because you prefer to transact by phone, you may like OFX or TorFX. And finally, if you’re thinking of sending a payment to someone to be collected in cash, Remitly or Western Union may be good PayPal alternatives to consider.
Use this guide to pick out the right PayPal alternative for you, based on the specific transaction type you need to make.
FAQ – PayPal Alternatives
What is the cheapest way to send money internationally?
Sending money internationally with a specialist online or digital service is often cheaper than using a bank. However, different services have their own rates and fees – so to find the cheapest way to send money internationally in your specific case, you’ll want to compare a few options based on both the transfer fees and the exchange rate markups applied.
Which is the safest mode of money transfer?
Sending your payment with a properly regulated and trusted provider is essential. Check the money transfer service you pick is reputable – in most cases these services are regulated in the same way as your bank, which makes them just as safe for the services they offer.
What is the best company to transfer money with?
There’s no single best company to transfer money with. Comparing a few is the best way to get a good deal. Use our top picks as a starting point to find the best one for you.
