When you need an international money transfer, picking the right service can make all the difference. Compare Western Union vs. PayPal when you need to send money overseas. Both services offer secure transactions around the world, but they differ in terms of reach and flexibility.
PayPal’s offerings are primarily based on its digital wallet, with electronic payments and online shopping at the forefront, while Western Union is focused on providing multiple ways to send money around the world in a variety of currencies and delivery formats.
Explore the differences between Western Union and PayPal in our guide below so you can choose the right service for your needs.
Key takeaways
- Both PayPal and Western Union offer secure international money transfers and safe mobile money apps.
- PayPal is available in more than 110 countries and offers transfers between two people with a PayPal account, with a 5% fee for international transfers.
- Western Union’s services are available in more than 200 countries and 130 currencies, with fees that vary according to transfer amount and payment method.
- Each service provides fraud protection and data encryption to keep your money and data safe.
Comparing reach and availability
The first consideration when comparing PayPal vs. Western Union is whether the service is available in your area—and whether the person at the other end of the transaction can access it, too.
Western Union’s international money transfers are available almost everywhere. You can send money to more than 200 countries and territories in nearly 130 currencies. Western Union’s hybrid service model lets you send cash electronically to a bank account, prepaid card, or digital wallet, or it can be picked up in person at hundreds of thousands of Western Union locations.
With PayPal, international money transfers are available in more than 110 countries and 24 currencies. However, the other person must also have a PayPal account to receive the money.
If they don’t, you can send money via PayPal using its Xoom service, which can send to 160+ countries a Xoom account as well. Cash pickup and bank account transfers available with PayPal, but they are with Xoom (although services vary by location).
PayPal vs. Western Union: Fees and exchange rates
Both Western Union and PayPal charge fees for sending money internationally. Western Union’s fees vary based on transfer amount and payment method (credit card, debit card, bank account, or mobile wallet). PayPal charges a fee of 5% for international money transfers, with a minimum fee of $0.99 and a maximum fee of $4.99. For domestic transfers funded by credit cards, a 2.9% fee applies, plus a fixed fee that varies depending on currency.
Both also set their own exchange rate, which is the value of one currency compared to another. It’s usually based on an index rate plus a small markup. Exchange rates change many times per day. Western Union’s exchange rates are based on the mid-market (or interbank) rate, plus a small spread. PayPal’s exchange rate includes a 4% spread.
Transfer speed and delivery options
How quickly will your money arrive with Western Union vs. PayPal? Both services can deliver funds within minutes. But since Western Union also offers other delivery options and works with more countries, that can sometimes affect transfer time.
PayPal money transfers can only be received in a PayPal account. But when you use Western Union, you can send money online, through the app, or in person at an agent location. Your recipient has even more flexibility: they can receive the funds to their bank account, a digital wallet, or via cash pickup at a nearby Western Union location.
Online electronic transfers are usually quickest, especially when funded by a credit card and sent to a mobile wallet, but even bank-to-bank transfers can be completed in as little as one day.
Comparing the digital experience
Western Union and PayPal each offer a highly rated free, secure mobile app to send money.
PayPal’s app lets you send and receive money via the Pay/Request feature, if you know the other person’s email, phone number, or PayPal account name. PayPal also offers international money transfers through its website.
Western Union’s mobile app integrates with its total global ecosystem. You can initiate a transfer on your phone, and then pay in-store at an agent location. That lets you lock in a favorable exchange rate and save time at the counter, too. You can also send and receive money online at Western Union’s website or in person and track your transfer in real time.
Western Union vs. PayPal: Reliability and trust
You should only use platforms you trust to send and receive money. Both PayPal and Western Union offer standard security features to safely transfer your money and protect you from fraud.
PayPal’s security features include fraud monitoring, data encryption, authentication, and passkey technology to protect your account from impersonators. Passkeys allow you to log in without a password, using biometrics instead.
Western Union’s security features also include fraud monitoring and data encryption, plus multi-factor authentication and real-time transfer monitoring. Your personal data is protected with TLS (Transport Layer Security), and credit card numbers, passwords, and user IDs are all encrypted as well. Western Union also uses photo identity verification using government-issued ID.
It also provides a Money Transfer Control Number (MTCN) you can use to track your transfer, and consumer fraud education to help you learn how to safeguard your money and personal information.
Why choose Western Union vs. PayPal
Both PayPal and Western Union serve customers around the world with secure international money transfers. But Western Union stands out for its reach and flexibility.
Western Union customers have access to a wider range of transfer options, including more countries, more currencies, and more ways to send and receive money. It uses due diligence much like major financial institutions do to verify people in international financial transactions, protecting you from fraud and keeping your money and data safe. And it also offers more benefits, like member rewards, fee discounts, and credit-building opportunities.
If you’re deciding between Western Union vs. PayPal, choose based on what matters most to you. Ready to send money now? Download the Western Union app, start a transfer online, or stop by a Western Union location to get started.
FAQs
Both Western Union and PayPal can send money around the world in minutes. Some services, like bank-to-bank transfers, can take up to a few business days.
No. PayPal is available in more than 110 countries, allowing you to send money in 24 different currencies. Western Union, on the other hand, is available in nearly every country but North Korea, Iran, and, as of 2022, Russia and Belarus, supporting 130 currencies.
Both Western Union and PayPal offer secure money transfers, with data encryption and fraud protection. But Western Union has been offering money transfer services for more than 150 years — and internationally for more than 40 years. Its core business is helping customers send and receive money worldwide, in whichever way works best for them: online, on-the-go, or in person.
While PayPal offers secure international payments, there are a few drawbacks. The service isn’t as widely available as Western Union, and the only option available is PayPal-to-PayPal electronic transfers. If you want to send money to someone without a PayPal account, or if you want the ability to send or receive cash in other ways, you’ll need to choose a different service.
Western Union offers massive global reach, secure transactions with tracking, and a variety of flexible payment and delivery options. With hundreds of thousands of agent locations worldwide, it offers a hybrid service system with both digital and in-person options, serving millions of customers around the globe.
