MoneyGram specializes primarily in cross-border remittances with a massive global retail network, while PayPal focuses on digital payments and peer-to-peer transactions with comprehensive online integration.
For international money transfers specifically, MoneyGram generally provides better global coverage and more delivery options, particularly in regions where traditional banking infrastructure is limited.
However, PayPal may be more cost-effective and convenient for transfers between countries with robust digital banking systems, especially when both sender and recipient are comfortable with digital-only transactions.
Both services have evolved significantly over their decades-long histories, adapting to changing consumer needs and technological advancements.
Understanding the differences between these platforms is crucial for consumers seeking the most appropriate service.
Especially for their specific financial needs, whether sending money internationally, making online purchases, or managing business transactions.
In this guide, we will be discussing:
- What is MoneyGram used for?
- What is PayPal used for?
- Is MoneyGram good?
- Is PayPal Good?
- Which money transfer is the cheapest, MoneyGram or PayPal?
- MoneyGram vsPayPal: which money transfer is best?
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What is MoneyGram, and how does it work?
MoneyGram International is a global financial technology company that has been facilitating money transfers for over 80 years.
The company is known for originally starting as Travelers Express before officially becoming MoneyGram International in 1998.
The company’s infrastructure is built around a network of over 440,000 retail locations and five billion digital endpoints.
This extensive reach allows MoneyGram to serve customers in nearly every country worldwide, processing transactions for over 50 million customers annually.
The service has successfully adapted to the digital age, with over 50% of all MoneyGram transactions now conducted digitally through their direct-to-consumer app, which boasts a 4.9-star review rating and a fast-growing user base.
MoneyGram offers multiple ways for customers to send and receive money, including online transfers, mobile app transactions, and in-person services at physical locations.
Recipients can receive funds through various methods depending on their location and preferences: cash pickup at retail locations, direct deposit to bank accounts, mobile wallet transfers, or card deposits.
The company has also expanded its services to bridge traditional finance with emerging technologies, partnering with the Stellar Development Foundation to create an on/off-ramp service that connects cash with cryptocurrencies, powered by the Stellar blockchain.
The transfer process with MoneyGram is straightforward and user-friendly.
- Customers begin by creating a free MoneyGram account, which takes only a few minutes to set up.
- For online or app-based transfers, users simply enter the recipient’s information, choose the delivery method, and complete the payment.
- For in-person transfers at retail locations, customers need to bring identification and cash for the transaction.
Many transfers can arrive within minutes, though timing depends on the specific countries involved and the chosen payment and delivery methods.
What bank does MoneyGram use?
MoneyGram partners with thousands of banks and credit unions worldwide to power its retail and digital services.
In April 2025, it added Plaid to its network, letting US customers verify their bank accounts instantly and securely.
By tapping Plaid’s vast network and linking it with MoneyGram’s compliance and anti-fraud systems, the company can:
- Fund domestic and cross-border payments faster
- Cut down on failed transactions
- Spot fraud proactively
This move boosts MoneyGram’s infrastructure, giving customers quicker, safer transfer options.
What is PayPal and how it works
PayPal Holdings Inc. is an American multinational financial technology company that operates an online payments system in the majority of countries worldwide.
Established in 1998 as Confinity, PayPal has grown to become one of the most popular digital wallets globally, with over 360 million users across 195 countries and supporting 25 different currencies.
PayPal functions as a digital wallet that allows users to send and receive money, make purchases online and in stores, and manage their finances without repeatedly entering personal payment information.
The platform acts as a middleman between users’ money and recipients, linking to checking accounts, savings accounts, credit cards, or debit cards.
This system eliminates the need for traditional money transfer methods like money orders or wire transfers, providing a more convenient and often faster alternative.
Over 29 million retailers worldwide accept PayPal payments, making it widely accessible for both online and in-store transactions.
The company offers a comprehensive suite of services beyond basic money transfers.
PayPal operates as a payment processor for online vendors, auction sites, and commercial users, charging fees for international transactions and other services.
Users can access PayPal through multiple channels, including:
- Website
- Mobile apps available on iTunes App Store and Google Play
- “One Touch” service that enables single-click payments on participating merchant websites and apps
The platform also supports currency conversion, allowing users to set preferences in their account settings.
PayPal has continuously evolved its service offerings to meet changing consumer needs.
- The company launched PayPal.Me in 2015, a peer-to-peer payment platform that allows users to send custom links for payment requests via text, email, or other messaging platforms.
- In 2020, PayPal introduced cryptocurrency services, allowing customers to use digital currencies for shopping at 26 million merchants on the network, with support for Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
- As of 2022, PayPal operates in 202 markets with 426 million active, registered accounts, demonstrating its massive global reach and user adoption.
Which bank is PayPal with?
PayPal relies on JPMorgan Chase and Wells Fargo to handle the massive flow of funds on its platform.
These partnerships give PayPal the banking backbone to securely process transactions in over 202 markets and serve hundreds of millions of users.
By linking to these banks, PayPal, while meeting strict regulatory and anti-money-laundering standards worldwide, enables:
- Instant transfers
- Debit-card funding
- Easy withdrawals
Is MoneyGram a Good Service?
MoneyGram is a dependable option for international money transfers, combining a vast physical network with growing digital tools.
Backed by 80+ years in the business and partnerships like Plaid for secure banking and Stellar for crypto services, MoneyGram balances reach, speed, and innovation.
Pros of MoneyGram
- Global Reach: 440K+ locations for easy cash pickup
- Flexible Delivery: Cash, bank deposit, mobile wallet, or card
- Fast Transfers: Many arrive within minutes
- Digital Growth: 50 %+ of transfers via a top-rated app
- Trusted History: Decades of industry experience
- Crypto Links: Cash-to-crypto options via Stellar
Cons of MoneyGram
- Opaque Banking Partners: Less transparency on who holds the funds
- Varied Service Quality: Depends on corridor and country
- Physical Focus: Heavy reliance on retail outlets
- Variable Fees: Costs fluctuate by amount, method, and destination
Is PayPal a Good Service?
PayPal excels as a comprehensive digital payment solution, making it particularly valuable for online shopping, peer-to-peer transfers, and business transactions.
The platform’s strength in e-commerce is further enhanced by its buyer protection policies and the ability to dispute transactions, providing users with additional security when making online purchases.
Pros of using PayPal
- Widespread Acceptance: Used by over 29 million merchants worldwide, both online and in-store.
- Easy to Use: Intuitive web and mobile apps with One Touch for quick checkouts.
- Global Coverage: Available in 202 markets, supporting 426 million active accounts.
- Crypto Support: Buy, sell, and spend cryptocurrencies at millions of merchants.
- Flexible Funding: Link bank accounts, credit cards, and debit cards.
- Buyer Protection: Robust dispute resolution and refund policies.
- Business Features: Merchant services and API integration for e-commerce.
Cons of PayPal
- Fees: International transfers, currency conversions, and crypto transactions can cost 1.5 – 1.8%.
- Account Holds: Funds may be frozen or limited unexpectedly.
- No Cash Pickup: Lacks in-person cash services, which limits use where banking is scarce.
- E-commerce Focus: Better for online/domestic payments than traditional remittances.
- Online Only: Requires reliable internet, which isn’t always available.
What is the cheapest way to transfer money internationally?
There’s no one-size-fits-all—costs vary by amount, corridor, and speed. Given below are the important considerations while choosing the cheapest money transfer:
- Digital-Only Services: Fintech apps (Wise, Revolut) and bank-funded PayPal transfers often offer the best rates for moderate sums between developed countries.
- Compare Providers: Always shop around. Fees and exchange-rate markups differ by platform, corridor, and funding method (bank vs. card).
- Timing Flexibility: If you can wait, monitor rates and transfer when they’re favorable.
- Avoid Banks: Traditional banks usually charge the highest fees; specialist money-transfer services tend to be cheaper.
Useful Tip: Match the provider to your corridor and delivery preference, then compare live rates to find the lowest cost.
Which is better: MoneyGram vs PayPal
Overall, the choice between PayPal and MoneyGram depends heavily on the specific use case and user requirements.
This is because each platform has distinct strengths that make them better suited for different scenarios.
MoneyGram excels in serving customers who need cash pickup options.
PayPal, conversely, dominates in digital payments, e-commerce, and peer-to-peer transactions within developed markets.
PayPal’s strength lies in its convenience for frequent online purchases, digital wallet functionality, and seamless integration with e-commerce platforms.
The platform’s cryptocurrency capabilities and innovative features like PayPal.Me make it more suitable for tech-savvy users.
Pained by financial indecision?
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Money is the best to transfer money to all parts of the world