PayPal vs MoneyGram: Fees, Rates & Speed Compared
PayPal ahead nowhere; MoneyGram on GBP → EUR, USD → PHP, USD → MXN.
PayPal
Won 0 of 3 routes here
1.4
MoneyGram
Won 3 of 3 routes here
4.0PayPal is a payments account with an FX feature; MoneyGram is a cash-agent network with digital and card funding options. The pricing models differ in structure: PayPal charges a percentage fee (5%, capped at $4.99) plus a 3-4% markup, while MoneyGram charges a flat fee from $1.99 plus a 1-3% markup. MoneyGram's model tends to be cheaper on smaller amounts where PayPal's percentage fee bites hardest; the gap narrows as the amount grows toward PayPal's $4.99 cap.
Live comparison: PayPal vs MoneyGram across popular corridors
Recipient payout route by route, PayPal against MoneyGram, from collected quotes (not guaranteed).
| Corridor | PayPal | MoneyGram | Winner |
|---|---|---|---|
| USD → INR($1,000) | — | ₹96,101.82 | N/A |
| GBP → EUR(£1,000) | €1,124.02 | €1,168.33 | MoneyGram (+€44.31) |
| USD → PHP($500) | ₱29,759.74 | ₱30,593.63 | MoneyGram (+₱833.89) |
| USD → MXN($1,000) | MX$17,124.76 | MX$17,606.81 | MoneyGram (+MX$482.05) |
| GBP → PKR(£500) | — | ₨182,975.97 | N/A |
| USD → NGN($200) | — | ₦263,896.10 | N/A |
Key differences between PayPal and MoneyGram
PayPal vs MoneyGram: Feature comparison
| Feature | PayPal | MoneyGram |
|---|---|---|
| Overall rating | 1.4/5 (Poor) | 4.0/5 (Good) |
| Fee structure | 5% with $0.99 min, $4.99 max | From $1.99 to $11.99+ |
| Exchange rate markup | 3% - 4% above mid-market | 1% - 3% above mid-market |
| Transfer speed | Instant to 3 days | Minutes to 3 days |
| Supported countries | 200+ | 200+ |
| Supported currencies | 25+ | 50+ |
| Max transfer | $60,000 | $10,000 |
| Delivery methods | PayPal Account, Bank Deposit | Bank Deposit, Cash Pickup, Mobile Wallet |
| Regulators | FinCEN, FCA, Various | FinCEN, FCA |
What we measured: PayPal vs MoneyGram
MoneyGram led on 0 of 60 of the corridors we price against 0 of 43 for PayPal. PayPal's average shortfall when it isn't cheapest is 8.91% — the widest we record for any provider — against 3.15% for MoneyGram.
A worked example: £1,000 to euros
On £1,000 GBP→EUR the gap is €44.31, with MoneyGram delivering more — 4.75% all-in for PayPal against 0.98% for MoneyGram. Notice the two components separately: PayPal's percentage fee shrinks in relative terms as the amount grows, capped at $4.99, but the uncapped 3-4% markup doesn't shrink with it — MoneyGram's narrower markup is the more meaningful lever on a larger send.
When to choose PayPal vs MoneyGram
Pick MoneyGram for cash pickup and typically lower cost
MoneyGram is the better instrument for most standalone remittances — cash pickup across roughly 200 countries, a narrower markup than PayPal's, and no requirement that the recipient hold any particular account. It's regulated by FinCEN in the US and the FCA in the UK.
Pick PayPal only where the payment already lives there
PayPal's case is the same as everywhere else on this site: an invoice, a refund, or a counterparty who won't accept anything else. Choosing it as a deliberate remittance route over MoneyGram is the more expensive option on the corridors we measure.
What the PayPal and MoneyGram figures don’t settle
MoneyGram's agent-level pricing varies by payout method and location; PayPal's consumer and business pricing differ. Confirm the quote and collection method before sending.
Verdict: PayPal or MoneyGram?
Cost winner: MoneyGram
MoneyGram led 0 of 60 of the corridors we price against 0 of 43 for PayPal, with PayPal's average shortfall of 8.91% the widest we record for any provider on the site.
Speed: Similar delivery times
PayPal settles instantly to another PayPal balance; MoneyGram's express options settle in minutes at a staffed counter. Both are fast once the payout method is matched — the more meaningful difference is what happens after: a PayPal balance versus cash in hand.
Wider coverage: MoneyGram
MoneyGram's roughly 200 countries and cash-pickup network beat PayPal's need for the recipient to hold or create a PayPal account. PayPal answers with instant balance-to-balance transfers where both sides already use it.
Bottom line
For a standalone remittance, MoneyGram is both cheaper and more flexible on payout method. PayPal earns its place only when the payment is already moving through PayPal for reasons unrelated to price.
PayPal vs MoneyGram: your questions
Is MoneyGram always cheaper than PayPal?
Not on every corridor, but it leads clearly on the ones we price. PayPal's combined fee-and-markup model tends to cost more, especially on smaller transfers where its percentage fee is proportionally larger.
Can PayPal do cash pickup like MoneyGram?
No — PayPal delivers to a PayPal balance or a linked bank account only. If the recipient needs cash, MoneyGram's agent network is the option on this page, not PayPal.
Why would anyone choose PayPal for a remittance?
Usually only because the payment is already inside the PayPal ecosystem — an invoice, a refund, or a marketplace payout. For a transfer chosen from scratch, MoneyGram is the cheaper route on the corridors we measure.
Does MoneyGram charge more for card funding?
Yes, funding with a debit or credit card typically costs more than funding from a bank account, since card processing carries its own fee. Check the funding-method breakdown on your specific quote.