MoneyGram was first based in 1940 in Dallas, Texas. The corporate now helps transfers to over 200 international locations with over 350,000 agent places worldwide.
In recent times, MoneyGram has additionally made efforts to modernise its providers with a web based focus, with 70 international locations now digitally enabled for on-line cash transfers.
PayPal was based in 1998 in California, USA. It was first launched as an e-wallet service and was later acquired by eBay in 2002 earlier than changing into impartial once more in 2015.
PayPal describes itself as a “safer, simpler, smarter way to send and receive money online”. In addition to giving customers the flexibility to ship cash to family and friends with an account, PayPal may also be used to make on-line purchases and join subscription providers.
Fast Abstract: MoneyGram Wins
General, MoneyGram has higher alternate charges, decrease charges, extra optimistic consumer critiques, and quicker switch occasions than PayPal. This, along with the truth that MoneyGram provides money pickups as a supply technique, makes it the clear winner on this Moneygram vs Paypal comparability – however that doesn’t imply it’s at all times the very best service to your switch wants.
Go to MoneyGram
Which model has decrease charges?
Moneygram’s payment construction depends on quite a few components, together with:
The situation you’re sending funds to
The kind of cost you go for
The quantity you’re sending
Whether or not you’re sending in a single or a number of currencies
For instance, should you had been to ship $200 to Singapore utilizing Moneygram, the charges can be $4.99 for a money pickup paid for by debit or bank card or by financial institution switch. Paying by money at an agent location, nonetheless, might imply you’re charged a distinct payment.
PayPal expenses charges for sending your cash internationally, in addition to for changing the foreign money, with charges principally depending on:
The place you’re sending fund to
PayPal refers to its charges as a ‘cross-border private transaction payment”. For the US, Canada, and Europe, PayPal will cost £0.99 for transactions beneath £49.99, £1.99 for transactions between £50 or over. For the remainder of the world, the charges are £0.99 for something £49.99 and beneath, £1.99 for transactions between £50 – £99.99, and £3.99 for transactions £100 or extra. Nevertheless, PayPal will even cost a percentage-based payment on prime of this.
✅ Verdict: There are too many variables to attract a transparent comparability
The 2 firms have very totally different payment constructions which might be largely depending on the person circumstances of your switch, so it’s tough to attract a direct Moneygram vs Paypal comparability. As well as, the alternate fee margin every firm provides onto the mid-market fee could make an enormous totally different to the entire sum your recipient receives.
Which model provides higher alternate charges?
The alternate fee margins MoneyGram expenses depends upon the foreign money pair you’re transferring between, in addition to different variables resembling the quantity you’re sending.
When you had been sending from GBP to EUR, for instance, you may count on to be charged round 5.05% above the mid-market fee, whereas sending to AUD would have margins about 4.23% above the mid-market fee. In comparison with newer cash switch operators, these markups are comparatively excessive.
PayPal is pretty upfront about its foreign money conversion charges on its web site. You may sometimes count on to obtain an alternate fee margin between 3.5 – 4%, relying on the foreign money – though it must be famous that the precise markup shouldn’t be displayed if you end up within the course of of creating a switch.
For instance, sending from GDP to AUD would have a mark up of 4%, whereas changing GDP to USD would have a margin of three.75%. In comparison with different cash switch suppliers, that is an uncompetitive alternate fee.
✅ Verdict: PayPal has higher alternate fee margins, however this doesn’t give the entire image
Whereas PayPal has the higher alternate fee margins objectively, it’s value making an allowance for that PayPal does additionally cost a percentage-based payment for worldwide transfers (its cross-border conversion payment), which may considerably have an effect on how a lot you’re charged for a switch. Within the case research in a while on this Moneygram vs Paypal comparability we’ll look at this in additional element.
Which model covers extra places?
MoneyGram is out there in over 200 international locations and 50 currencies, with 70 of these international locations digitally enabled. MoneyGram additionally has over 350,000 agent places worldwide.
PayPal is out there in additional than 200 international locations, however they solely assist 25 currencies in the mean time.
✅ Verdict: MoneyGram helps extra currencies
Each firms assist a variety of nations internationally, however MoneyGram has the flexibility to assist transfers to double the variety of currencies than PayPal, which makes it clearly superior on this class.
Which is quicker?
Transfers with MoneyGram could be prepared in minutes (particularly for smaller sums or money pickups), while a financial institution switch can take as much as 5 working days.
If that you must request for the individual you’re sending the funds to create a PayPal account or have to first withdraw your funds out of your checking account, the switch can take between 3 – 5 days. Nevertheless, if you’re sending cash to somebody who already has a PayPal account, the switch must be immediate.
✅ Verdict: It’s a tie
Each firms are able to immediate transfers beneath the precise circumstances (smaller sums, and paying by card/PayPal account), however transfers can equally be delayed a number of working days if you’re sending bigger sums or withdrawing straight out of your checking account.
Which model provides extra switch & cost choices?
MoneyGram permits you to pay for on-line transfers by:
Checking account (US solely)
Money should you’re visiting an agent location straight
Switch choices are depending on the nation you’re sending to. The place allowed, you’ll be able to resolve to switch the funds to your recipient’s checking account, cellular pockets, pay as you go card, or organise a money pickup.
PayPal’s cost choices embrace paying by:
Financial institution switch
You may choose to your recipient to obtain the funds both by financial institution switch or by PayPal account switch.
✅ Verdict: Each have quite a few cost choices, however MoneyGram alone provides money pickups
If you’re primarily seeking to ship cash overseas on to your recipient’s checking account, each suppliers supply vary of cost choices – though each events will want a PayPal account for this supplier to work finest. Nevertheless, for these seeking to ship cash that may be picked up in money on the opposite finish, MoneyGram is the one one out of the 2 that has this service.
What do customers should say about every model?
MoneyGram UK has over 1,400 critiques on Trustpilot with an total ‘Great’ ranking of 4.2 out of 5. The US model, MoneyGram US, has over 3,800 critiques on Trustpilot with an total ‘Great’ ranking of 4 out of 5. Constructive critiques usually point out MoneyGram’s quick switch occasions, affordability, and handy service.
Extra destructive critiques embrace criticism for switch occasions taking longer than anticipated, destructive experiences with customer support, and account closures.
PayPal has over 13,000 critiques on Trustpilot with an total ‘Bad’ ranking of 1.3 out of 5. It’s value making an allowance for that these critiques are usually not simply aimed in direction of PayPal’s providers as a global switch supplier, however directed in direction of PayPal’s service as an entire.
Amongst destructive critiques, customers regularly seek advice from unfair expenses, funds being paused or misplaced, and poor customer support.
✅ Verdict: MoneyGram has higher critiques
When evaluating Moneygram vs Paypal, MoneyGram has way more optimistic critiques than PayPal on-line, with frequent reward for its low charges and quick switch occasions. It’s value making an allowance for that PayPal’s critiques are reflective of all of the providers that they supply, reasonably than merely centered on their foreign money conversion capabilities.
What model provides higher ease of use, accessibility & safety?
MoneyGram helps over 7 languages on its app together with English, Dutch, and Spanish. The app is out there on iOS and Android and receives usually optimistic critiques, offering a extra handy manner for customers to switch cash on the go.
MoneyGram has a big useful resource centre on their web site to offer help for regularly requested questions and in addition gives the choice to fill out a kind on-line should you want extra in-depth assist together with your switch.
The service makes use of quite a few verification and safety processes to maintain your cash secure. You’ll sometimes be requested to authenticate your id by importing a photograph of your passport on the app.
PayPal is accessible to a variety of nations, supporting 17 totally different languages. The app is out there on each iOS and Android, permitting you to view your stability, add and withdraw cash, and ship cash. The app receives good critiques for its comfort and ease of use.
PayPal has a big assist centre on its web site in addition to a neighborhood discussion board designed to handle and clear up any issues that customers might have. As well as, you too can contact customer support by way of a messaging perform on the web site.
PayPal makes use of superior encryption expertise in an effort to shield each transaction it processes. It additionally has safety questions in place that you should utilize should you neglect or lose your password, though you too can contact customer support to regain entry to your account.
✅ Verdict: It’s a tie
Each firms have made respectable efforts to make their web sites and apps accessible and handy for customers, and each have total optimistic critiques on the app shops they’re accessible on. Equally, each firms are regulated and implement a number of layers of safety to make sure your account and cash stays protected.
An extra characteristic that some customers might like is MoneyGram’s Plus Rewards program. This provides common customers to earn rewards each time they ship cash, resembling a 20% low cost in your second switch, ‘members-only- promotions, and a 40% low cost off of each fifth switch.
Along with funds for family and friends, PayPal’s major territory is in e-commerce. It’s most generally used as a technique to pay retailers for items on-line – to do that, you’ll be able to authorize a vendor to make use of your PayPal account, or designate a month-to-month cost for a subscription service.
Case research: sending a wide range of quantities
This case research of Paypal vs Moneygram will have a look at the assorted charges, switch occasions, and expenses related to sending varied quantities with every supplier to assist us discover the very best deal when sending GDP to SGD.
Sending this sum with MoneyGram would incur a payment of £3.99 if paying by financial institution switch or card, with an alternate fee of 1.0000 GBP = 1.6920 SGD (on the time of writing). The full obtained can be 338.40 SGD. You possibly can count on this switch to be processed between 1 – 3 days.
This sum would go away your recipient with 1,692.00 SGD, with a complete estimated value to you of 1,003.99 GBP. The alternate fee would stay the identical as when sending £200.
The restrict for this transaction is 6000.00 GBP, so you wouldn’t be capable of ship this massive a sum with MoneyGram.
If utilizing PayPal, you’ll be given a conversion fee of 1 GDP = 1.6746 SGD (on the time of writing), with PayPal’s foreign money conversion payment included in that fee. In whole, your recipient would obtain 334.93 SGD.
You’d be given the identical alternate fee as above for this sum, with the switch more likely to take between 3 – 5 days. Your recipient would get 1674.64 SGD.
Once more, for this sum, you’ll get the identical alternate fee and foreign money conversion payment (percentage-based) added to your switch. Your recipient would get a complete of 33492.73 SGD.
✅ Verdict: The recipient will get extra with MoneyGram
From this case research, we will see that within the two smaller transfers, MoneyGram leaves you with extra funds going to your recipient, which for a lot of, is the highest precedence. Due to this fact MoneyGram stands out as a transparent winner right here in each quantity aside from the bigger sum. When you had been seeking to ship a sum this massive, nonetheless, it could be a good suggestion to look right into a extra specialist switch firm who can help you together with your switch for the bottom charges.
Remaining verdict – who is best?
General, evaluating Paypal vs Moneygram, it may be stated that MoneyGram does supply the extra aggressive service for worldwide transfers, charging decrease charges, higher alternate charges, and with a usually quick switch time.
Nevertheless, you might discover a higher take care of one other on-line cash switch firm than both of those two switch suppliers, which is why we’d at all times suggest evaluating suppliers to your particular switch wants.
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Yasmin is the content material author for MoneyTransfers.com. With an English diploma from the College of Nottingham and over 5 years’ expertise freelancing within the private finance area of interest, Yasmin joined the staff with a mission to make worldwide cash transfers accessible and simple to know for all. When she’s not writing, you’ll discover Yasmin on her yoga mat or planning her subsequent escape to the mountains.