PayPal vs Remitly – Which one is better for Americans?

When you need to send money or pay for things online, picking the right app can save you money and hassle. PayPal and Remitly are two popular options, but they work very differently, and there are pros and cons to each.

PayPal is like a digital wallet that you can use for shopping, paying friends, and sending money to over 110 countries in the world.¹ Remitly only does one thing, which is providing international money transfer services to over 170 countries.²

So, how does PayPal vs Remitly compare? Here's everything you need to know about their international transfers and other features so you can figure out which provider is right for your needs.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

Learn more 🔎

Table of contents
PayPal vs Remitly – general overview PayPal vs Remitly – fees PayPal vs Remitly – exchange rates Supported countries Transfer times Safety & security Frequently asked questions Final verdict: Which provider is better?

PayPal vs Remitly – general overview

With PayPal, there are many things you can do—many more than with Remitly.

You can shop online, pay friends back for dinner, send money to family, and even buy cryptocurrency. It's possible to add money from your bank account, credit card, or keep a balance in your PayPal account.

Remitly is only a money transfer service provider.

It helps people send money to other countries, but you can't use it for things like paying your US friends back. It's more targeted to people needing a better way to send money back home to their families, but, of course, it's not limited only to that audience. Anyone who needs to send money overseas can use it.

Both providers are safe to use and have mobile apps for convenience. However, both can also end up being quite expensive to transfer funds because they charge you fees and currency exchange rate markups.

Pros & cons

	PayPal	Remitly
Pros	Free to send money to friends in the US Works in 110+ countries Fast and easy transfers You can use it for shopping	Send international money transfers to 170+ countries Multiple ways to receive money Good deals for new customers Relatively low fees and competitive exchange rates
Cons	Expensive fees for international transfers (5% fee capped at 4.99 USD)³ Can only send money to another PayPal account High currency exchange rate markup—3% to 4%³	Only for international transfers Charges transfer fees and currency exchange markups Can't use it for shopping Good rates only for new customers You’ll pay more for fast transfers

PayPal vs Remitly – fees

Both PayPal and Remitly charge you fees to transfer money. Here's how these costs compare:

Fee	PayPal³	Remitly
Sending money to friends in the US	Free (bank account or PayPal balance) 2.9% + fixed fee for cards	Not available
International transfers	5% (max 4.99 USD) + currency conversion fee	Varies by country, but typically under 4.99 USD⁴⁵⁶
Currency conversion	3% to 4% markup on the exchange rate	Not transparent, but includes markup
New customers	No special discount	Special discounts for new users
Fast transfers	No extra charge (instant to other PayPal accounts)	Higher fees for faster transfers⁷

PayPal will get expensive and fast when you send money abroad.

You'll pay a 5% fee (but never more than 4.99 USD), plus they give you a bad exchange rate that costs you 3% to 4% more.³ If you're looking for low-cost transfers, PayPal probably isn't the best option for you.

Remitly also charges you transfer fees and currency exchange rate markups, but their fees are generally a bit lower, though this depends on your destination country, delivery speed, and how you want your loved ones to receive money.

When we checked, it cost 1.99 USD to send money to Mexico via bank or debit card deposit, 1.99 USD via mobile wallet, and 3.99 USD for cash pickups.⁴ For the Philippines, cash pickups go up to 4.99 USD, but bank deposits, cards, and mobile wallets come with zero fees.⁵

Check your destination country to get the most accurate rate.

PayPal vs Remitly – exchange rates

PayPal and Remitly both make a lot of money on their currency exchange rates. These fees can often feel like "hidden fees" because they're worked into your transfer.

It can be hard to make sense of them, since you'll need to look up the mid-market exchange rate, and then compare it to what PayPal or Remitly is giving you.

At the same time, PayPal is a bit more transparent about the exchange rate markups they charge you than Remitly. They tell you upfront that you'll pay 3% to 4% extra on currency conversion.³

In other words, if Google says 1 USD equals 0.75 GBP, PayPal might only give you 0.72 GBP. On a 1,000 USD transfer, this difference costs you about 40 USD.

Remitly doesn't clearly show how much extra they charge on exchange rates, but they do charge a markup. That said, their promotional rate for new customers can be pretty good, so that’s an option for your first transfer, but it won't last.

Supported countries

You'll get a wide international coverage with both Remitly and PayPal.

Remitly sends money to over 170 countries in 100 different currencies, including popular destinations like Mexico, the Philippines, and India.² There aren't many restrictions, but some countries might limit how money can be received (like only bank transfers or only cash pickup).

PayPal works in over 110 countries, so it's safe to say that you can get your money from the US to virtually anywhere.¹ However, if you want to stick to PayPal, you can only send money internationally to people who also have PayPal accounts. You can't do cash pickups or other delivery methods.

If you need to send to people without PayPal accounts or you want them to be able to get cash, you'll need to use Xoom, which is another money transfer service provider owned by PayPal.

However, Xoom comes with its own fees and rules. Just because you use PayPal doesn't mean you must use Xoom. You can compare your options to see if you get a better deal elsewhere, such as with Wise.

Transfer times

Both PayPal and Remitly are pretty fast ways to get money abroad.

PayPal transfers are instant, since you're just sending money from one PayPal account to another. With Remitly, you'll have to pay more for speed, which can be frustrating.

Economy transfers with Remitly can take a few business days, and you'll have to pay a fee for an Express transfer if you don't want to wait that long.⁸

Safety & security

Both PayPal and Remitly are safe to use. They use strong encryption to protect your information and are regulated by financial authorities. Your money is protected during transfers.

That said, make sure to watch out for scams, especially when it comes to cash pickups (only available with Remitly). Once you send money via a money transfer service, it can be hard to get it back, since you sent it willingly.

It's important to only send money to people you know and trust, and be on the lookout for scams like someone asking you to send money for a "prize" you won or meeting a romantic interest online who needs "emergency" money.

Frequently asked questions

Is PayPal better than Remitly?

It depends. For your first international transfer, Remitly's new customer offer often gives you better rates than PayPal. However, it'll also get quite expensive once you're not a new customer. PayPal also does more things, such as shopping and handling business payments.

But for just sending money abroad, Remitly is usually cheaper and gives you more options like cash pickup.

Does Remitly charge a fee?

Yes, Remitly charges transfer fees that vary depending on the country you're sending money to and how you want your recipient to get the money. Typically, the fees stay below 4.99 USD, but they can be lower or higher. Remitly also makes money through exchange rate markups, but they don't clearly show how much extra they charge for currency conversion.

What are the disadvantages of sending money through PayPal?

PayPal gets expensive for international transfers. You pay a 5% fee (capped at 4.99 USD) plus poor exchange rates that cost you 3% to 4% extra. Also, you can only send money to people with PayPal accounts, which limits your options. If you want your recipients to get cash or receive money in another way, you'll have to use Xoom.

What are the disadvantages of Remitly?

Remitly's fees typically aren't as high as PayPal's, but it's still not a cheap way to send money abroad. Plus, that's the only thing you can do. You can't use Remitly to send money to friends in the US or for shopping the way you can with PayPal.

What is the most money I can send through PayPal?

Without verification, you can send 4,000 USD in a single payment, with limits on your total sending amount. Once your PayPal account is verified, you'll be able to send up to 60,000 USD per transaction (though PayPal may limit this to 10,000 USD) with no limit on the total amount you can send over time.⁹

If you want to compare this with Remitly, their sending limits are lower. You can send up to 25,000 USD in a single transaction, but limits vary by destination country and delivery method, so this is not guaranteed.¹⁰

Final verdict: Which provider is better?

Both PayPal and Remitly can get expensive for international payments.

PayPal wins for versatility, and it's great for shopping and domestic payments within the US. However, Remitly often beats PayPal in the cost for sending money abroad, and it also offers more payment methods.

But neither service gives you the mid-market rate you see on Google. PayPal charges 3% to 4% extra on currency conversion, and Remitly doesn't even give a clear markup percentage.

Before you choose either option, compare all your choices. For example, Wise offers international transfers with no exchange rate markups and transparent fees.

Opening a Wise account is another option you can benefit from — it’s quick and simple to do it online with just a few clicks.

Learn more about Wise

Sources

1. PayPal - Send money internationally
2. Remitly - Home
3. PayPal - PayPal Consumer Fees
4. Remitly - USD to MXN
5. Remitly - USD to PHP
6. Remitly - USD to INR
7. Finder - Remitly vs PayPal
8. RemitBee - Remitly Money Transfer Review
9. PayPal - What’s the maximum amount I can send with my PayPal account?
10. Remitly - Send more money home

Sources checked 09/10/2025