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PayPal was founded in 1998 in California, USA. It was first launched as an e-wallet service and was later acquired by eBay in 2002 before becoming independent again in 2015.
PayPal describes itself as a “safer, simpler, smarter way to send and receive money online”. As well as giving users the ability to send money to friends and family with an account, PayPal can also be used to make online purchases and sign up for subscription services.
Quick Summary: MoneyGram Wins
Overall, MoneyGram has better exchange rates, lower fees, more positive user reviews, and faster transfer times than PayPal. This, in addition to the fact that MoneyGram offers cash pickups as a delivery method, makes it the clear winner in this Moneygram vs Paypal comparison - but that doesn't mean it's always the best service for your transfer needs.
Which brand has lower fees?
Moneygram’s fee structure is dependent on a number of factors, including:
The location you are sending funds to
The type of payment you opt for
The amount you are sending
Whether you are sending in a single or multiple currencies
As an example, if you were to send $200 to Singapore using Moneygram, the fees would be $4.99 for a cash pickup paid for by debit or credit card or by bank transfer. Paying by cash at an agent location, however, may mean you are charged a different fee.
✅ Verdict:There are too many variables to draw a clear comparison
The two companies have very different fee structures that are largely dependent on the individual circumstances of your transfer, so it's difficult to draw a direct Moneygram vs Paypal comparison. In addition, the exchange rate margin each company adds onto the mid-market rate can make a big different to the total sum your recipient receives.
Which brand offers better exchange rates?
The exchange rate margins MoneyGram charges depends on the currency pair you are transferring between, as well as other variables such as the amount you are sending.
If you were sending from GBP to EUR, for example, you could expect to be charged around 5.05% above the mid-market rate, while sending to AUD would have margins about 4.23% above the mid-market rate. Compared to newer money transfer operators, these markups are relatively high.
✅ Verdict:PayPal has better exchange rate margins, but this doesn't give the whole picture
While PayPal has the better exchange rate margins objectively, it's worth bearing in mind that PayPal does also charge a percentage-based fee for international transfers (its cross-border conversion fee), which can significantly affect how much you are charged for a transfer. In the case studies later on in this Moneygram vs Paypal comparison we'll examine this in more detail.
Which brand covers more locations?
MoneyGram is available in over 200 countries and 50 currencies, with 70 of those countries digitally enabled. MoneyGram also has over 350,000 agent locations worldwide.
✅ Verdict:MoneyGram supports more currencies
Both companies support a wide range of countries across the world, but MoneyGram has the ability to support transfers to double the number of currencies than PayPal, which makes it clearly superior in this category.
Which is faster?
Transfers with MoneyGram can be ready in minutes (especially for smaller sums or cash pickups), whilst a bank transfer can take up to 5 working days.
✅ Verdict:It's a tie
Both companies are capable of instant transfers under the right circumstances (smaller sums, and paying by card/PayPal account), but transfers can equally be delayed several working days if you are sending larger sums or withdrawing directly from your bank account.
Which brand offers more transfer & payment options?
MoneyGram allows you to pay for online transfers by:
Bank account (US only)
Cash if you’re visiting an agent location directly
Transfer options are dependent on the country you are sending to. Where allowed, you can decide to transfer the funds to your recipient’s bank account, mobile wallet, prepaid card, or organise a cash pickup.
✅ Verdict: Both have a number of payment options, but MoneyGram alone offers cash pickups
If you are mainly looking to send money abroad directly to your recipient's bank account, both providers offer a good range of payment options - although both parties will need a PayPal account for this provider to work best. However, for those looking to send money that can be picked up in cash on the other end, MoneyGram is the only one out of the two that has this service.
What do users have to say about each brand?
MoneyGram UK has over 1,400 reviews on Trustpilot with an overall ‘Great’ rating of 4.2 out of 5. The US version, MoneyGram US, has over 3,800 reviews on Trustpilot with an overall ‘Great’ rating of 4 out of 5. Positive reviews often mention MoneyGram’s fast transfer times, affordability, and convenient service.
More negative reviews include criticism for transfer times taking longer than expected, negative experiences with customer service, and account closures.
✅ Verdict: MoneyGram has better reviews
When comparing Moneygram vs Paypal, MoneyGram has far more positive reviews than PayPal online, with frequent praise for its low rates and fast transfer times. It's worth bearing in mind that PayPal's reviews are reflective of all the services that they provide, rather than simply focused on their currency conversion capabilities.
What brand offers better ease of use, accessibility & security?
MoneyGram supports over 7 languages on its app including English, Dutch, and Spanish. The app is available on iOS and Android and receives generally positive reviews, providing a more convenient way for users to transfer money on the go.
MoneyGram has a large resource centre on their website to provide assistance for frequently asked questions and also provides the option to fill out a form online if you need more in-depth help with your transfer.
The service uses a number of verification and security processes to keep your money safe. You will typically be asked to authenticate your identity by uploading a photo of your passport on the app.
✅ Verdict: It's a tie
Both companies have made respectable efforts to make their websites and apps accessible and convenient for users, and both have overall positive reviews on the app stores they are available on. Equally, both companies are regulated and enforce multiple layers of security to ensure your account and money stays protected.
Additional features
An additional feature that some users may like is MoneyGram’s Plus Rewards program. This gives regular users to earn rewards every time they send money, such as a 20% discount on your second transfer, ‘members-only- promotions, and a 40% discount off of every fifth transfer.
Case study: sending a variety of amounts
This case study of Paypal vs Moneygram will look at the various fees, transfer times, and charges associated with sending various amounts with each provider to help us find the best deal when sending GDP to SGD.
Sending £200
Sending this sum with MoneyGram would incur a fee of £3.99 if paying by bank transfer or card, with an exchange rate of1.0000 GBP = 1.6920 SGD (at the time of writing). The total received would be 338.40 SGD. You could expect this transfer to be processed between 1 - 3 days.
Sending £1,000
This sum would leave your recipient with 1,692.00 SGD, with a total estimated cost to you of 1,003.99 GBP. The exchange rate would remain the same as when sending £200.
Sending £20,000
The limit for this transaction is 6000.00 GBP, so you would not be able to send this large a sum with MoneyGram.
✅ Verdict:The recipient gets more with MoneyGram
From this case study, we can see that in the two smaller transfers, MoneyGram leaves you with more funds going to your recipient, which for many, is the top priority. Therefore MoneyGram stands out as a clear winner here in every amount except for the larger sum. If you were looking to send a sum this large, however, it would be a good idea to look into a more specialist transfer company who can assist you with your transfer for the lowest fees.
Final verdict - who is better?
Overall, comparing Paypal vs Moneygram, it can be said that MoneyGram does offer the more competitive service for international transfers, charging lower fees, better exchange rates, and with a generally fast transfer time.
However, you may find a better deal with another online money transfer company than either of these two transfer providers, which is why we'd always recommend comparing providers for your specific transfer needs.
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