Planning to send money to friends and family abroad? While it has become easier, choosing the right service can still be confusing. MoneyGram and PayPal are two popular options. Both allow people to send money; however, they work in different ways.
It also owns Xoom3 – a separate service for international money transfers, with options such as cash pickup and bank deposits in supported countries.
So, which should you choose: MoneyGram or PayPal? It varies based on where you intend to send money, how the recipient wants to receive it, and how much the specific transfer costs.
According to the World Bank, sending $200 internationally4 costs an average of 6.36% in fees of the amount transferred. In other words, it means you could lose around $12.72 to transfer costs on a $200 payment.
Fret not, this article will help you compare MoneyGram and PayPal's fees, exchange rates, transfer speeds, payment methods, and receiving options.
We'll also look at their international availability and explore how BOSS Money compares as another option for international money transfers.
MoneyGram vs. PayPal: Key differences at a glance
PayPal and MoneyGram offer some similar features, but their primary services differ.
While MoneyGram provides several ways to deliver money (including cash pickup at partner locations), Standard PayPal transfers usually send money to another PayPal account.
Here's how the two services compare:
Feature | MoneyGram | PayPal | ||
|---|---|---|---|---|
Main service | Domestic and international money transfers | Digital wallet and online payment platform | ||
Domestic transfers | Available through supported locations and methods | Available between eligible PayPal accounts | ||
International transfers | Available to supported countries | Available through PayPal and its Xoom service, depending on the route | ||
Cash pickup | Available in supported countries | Available through Xoom on supported routes, not standard wallet transfers | ||
Bank account transfers | Bank deposits available in supported countries | Linked bank transfers and eligible withdrawals available | ||
Mobile wallet transfers | Available in selected countries | Available through Xoom in selected countries | ||
Transfer fees | Depend on amount, destination, payment method, and payout method | Depend on payment type, funding method, destination, and currency conversion | ||
Exchange rates | MoneyGram applies its displayed transfer rate | PayPal applies a conversion spread; Xoom also displays its own transfer rate | ||
Account required | Online transfers require registration; in-person options may differ | A PayPal account is often needed to send or receive standard wallet payments |
Although there are many, the main difference between the two is how recipients get their money.
With MoneyGram, they may collect cash from a nearby agent or receive funds through a bank or mobile wallet. With standard PayPal, they typically receive the money in their PayPal account.
If someone needs cash and doesn’t use PayPal, MoneyGram may be the more practical choice. If both people already use PayPal, sending money through the platform may be easier.
MoneyGram vs. PayPal fees: Which is cheaper?
The question whether MoneyGram or PayPal is cheaper depends on the money transfer itself.
For instance, one service might advertise low money transfer fees but charge a poor exchange rate, while the other one might charge a higher fee, providing for larger sums after conversion.
When comparing MoneyGram to PayPal, it's important to take into account not only the transfer fee but also the exchange rate.
How MoneyGram calculates its fees
MoneyGram transfer fee calculation depends on aspects such as:
The sum of money sent.
The destination country.
The payment method.
The payout method.
The pickup location (if any).
For instance, it might cost more to pay by a credit card than by a bank account. The choice of a recipient might influence the cost as well. For example, a cash pickup transaction would be different from a bank deposit one.
Before confirming a transaction, the user can see the total fee and MoneyGram exchange rate for that transaction.
How PayPal calculates its fees
PayPal operates on a different pricing model. Personal domestic transfers paid by PayPal balance or linked bank account are usually free of charge for US citizens. Card-funded transactions5 may involve some fees.
In case of international transfers, an international transaction fee might be applied. Besides that, if sender and recipient use different currencies, the currency conversion spread would also incur.
Xoom also has its own fee structure. It depends on the destination, amount, payment method, payout method, and currency used. So PayPal wallet transfers and Xoom remittances should be compared separately.
Why you should consider payment and payout methods?
Your payment method affects the cost of the transfer. Debit card, credit card, bank account, and existing wallet balance might be charged differently.
Then, there’s currency conversion. The exchange rate set by the provider might be worse than the market rate, thus the recipient may receive less money.
Also, international money transfers may cost more than domestic ones because of the currency conversion, additional processing, payment networks, and local payout partners.
Comparing MoneyGram, PayPal, and BOSS Money fees
BOSS Money is another option to consider when sending money to your loved ones abroad. Unlike a general digital wallet, it focuses on international money transfers and offers different payout options.
To compare MoneyGram, PayPal through Xoom, and BOSS Money, we used the same transfer details for each service:
Transfer amount: $500
Route: United States to Mexico
Quote date and time: November 11, 2026.
Customer status: New customer
Payment method: Bank account
Payout method: Bank account
Fee and rate details | MoneyGram6 | PayPal (Xoom)7 | BOSS Money | |
|---|---|---|---|---|
Transfer amount | $500 | $500 | $500 | |
Transfer fee | $1.99 | $0.00 - $64.09 | $0.00 | |
Exchange rate | 1 USD = 18.41 MXN | 1 USD = 18.51 MXN | 1 USD = 18.48 MXN | |
Payment method | Bank account | Bank account | Bank account | |
Payout method | Bank account | Bank account | Bank account | |
Recipient receives | 9,168 MXN | 9,255 MXN - 8068 MXN | 9,240 MXN |
Transfer speed: How long does each service take?
The time it takes to perform the money transfer will depend on the service and receiving method chosen. Some of them are performed in minutes, while others require several business days.
Here is what to expect from each option.
MoneyGram cash pickup: Cash pickup transfers can be available within minutes on supported routes. The recipient must visit a participating agent location, provide the required identification (such as valid photo ID and the 8-digit reference number8), and collect the funds. Location hours and transaction checks may affect availability.
MoneyGram bank deposits: MoneyGram typically takes up to 3 business days9 to deposit money into a bank account, although some destinations allow deposits within a few hours. The recipient's bank may need extra time to process the transfer, especially outside local banking hours.
PayPal account transfers: Transfers between eligible PayPal accounts are often completed quickly. However, a payment may be delayed if PayPal needs to review the transaction10 or the recipient must complete account verification.
PayPal bank withdrawals: Once money reaches a PayPal balance, the account holder can withdraw it to an eligible bank account or debit card. In the US, instant withdrawals typically take minutes and carry a fee11. Standard bank transfers often take one to three business days11.
Xoom international transfers: Xoom offers a separate international transfer service. Depending on the destination and payout method, transfers may arrive within minutes or take a few days12. Cash pickup and mobile wallet transfers can be quick, while bank deposits depend on the recipient's bank.
In every case, the country, payment method, transaction verification, banks involved, and operating hours of pickup locations can affect delivery time. Therefore, check the estimated arrival time before you confirm a transfer.
Payment and receiving options
Before choosing a provider, consider how you want to send the funds and how the recipient plans to access it. Not every option is available in every country.
International availability and supported countries
Both MoneyGram and PayPal allow international payments; however, their country coverage and services are not the same.
MoneyGram operates in more than 200 countries and territories14 through its digital services and agent network. You can send money online, through the app, or at participating locations.
PayPal also functions in many countries. However, the services available in each market can differ. Some countries allow users to send and receive money, while others have limited account features.
The same applies to MoneyGram. A country may support cash pickup but not bank deposits or mobile wallet transfers.
Local laws, banking systems, currency rules, and business partnerships may affect service availability.
Before sending money, check these details:
Can you send money from your country?
Can the recipient receive funds in their country?
Is cash pickup available?
Can you transfer funds directly to a bank account?
Can the recipient's mobile wallet receive the transfer?
What limits and identity checks apply?
Make sure to check the exact route as it helps you avoid delays and failed transactions.
BOSS Money: A good alternative to MoneyGram and PayPal
If you want to send money to friends or family abroad, a dedicated international transfer service may be a better choice than a digital wallet.
Recipients can obtain money through the following options in eligible countries:
Bank deposit: Funds go directly into the recipient's bank account.
Direct to debit: Money goes to an eligible Visa or MasterCard debit card.
Cash pickup: Recipients collect cash from an authorized partner location.
Mobile wallet: Funds go to a supported mobile money account.
Home delivery: Cash is delivered to the recipient's address in selected countries.
These options give senders more flexibility, especially when the recipient doesn’t use a bank account or digital wallet.
BOSS Money also lets users review the exchange rate and transfer fee before confirming an order. The cost depends on the amount, destination, payment method, and delivery option.
For example, people who send money to Mexico can choose from a range of options such as cash pickup, bank deposits, and mobile wallets. Other countries may have different delivery choices.
The service also provides transfer tracking and notifications, so senders can follow the progress of their payments.
If you're comparing MoneyGram, PayPal, and BOSS Money, think about what the recipient needs most. A digital wallet works well for online payments and account-to-account transfers.
A reliable transfer service can be more useful when someone needs cash, a bank deposit, or a mobile wallet payment abroad.
Frequently asked questions
Sources: all third party information obtained from applicable website as of November 11, 2026
https://www.moneygram.com/us/en
https://www.paypal.com/en/home
https://www.xoom.com
https://remittanceprices.worldbank.org
https://www.paypal.com/en/digital-wallet/paypal-consumer-fees
https://www.moneygram.com/us/en/currency-converter/usd-to-mxn
https://www.xoom.com/mexico/send-money
https://www.moneygram.com/us/en/send-and-receive/receiving-money
https://www.moneygram.com/us/en/cash-pickup-or-bank-transfer
https://www.paypal.com/us/cshelp/article/why-is-my-withdrawal-being-held-for-review-help395
https://www.paypal.com/us/cshelp/article/how-do-i-get-money-out-of-my-paypal-account-help394
https://www.investopedia.com/articles/personal-finance/020615/xoom-101-how-do-xoom-money-transfers-work.asp
https://www.paypal.com/sn/cshelp/article/what-bank-accounts-and-debit-cards-are-eligible-for-instant-transfer-help397
https://www.moneygram.com/us/en/help-center/faq/send-receive/general-questions/which-countries-can-i-send-money-to
This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.
