With transactions online spanning continents, the need to select a suitable platform for cross-border remittances becomes paramount.
Here we compare Remitly vs PayPal on such fundamental factors as fees, delivery time, security protocols, and overall user interface.
Our intention is to provide a balanced and in-depth analysis to enable you to make an informed choice as to which service is most appropriate for your remittance requirements.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a second opinion or alternative investments.
Some facts might change from the time of writing, and nothing written here is financial, legal, tax, or any other kind of individual advice, or a solicitation to invest.
Who is Remitly?
Remitly, started by Matt Oppenheimer, Josh Hug, and Shivaas Gulati in 2011, is an expert in simplifying global remittances.
Especially for immigrant communities remitting money back to their sending country.
How Remitly works
- International money transfers
- Cash pickup services
- Mobile wallet transfers
- Express and Economy transfer services
What is PayPal?
PayPal was developed in 1998 (then Confinity) by Max Levchin, Peter Thiel, and Luke Nosek, before the merger with Elon Musk’s X.com in 2000.
It was the first online payment system widely utilized and later was acquired by eBay in 2002 before once again conducting business separately in 2015.
How does PayPal work?
- Domestic and cross-border fund transfers
- Online business payment processing services
- Buyer and seller protection programs
- PayPal Credit financing facilities
- Buying, holding, and selling cryptocurrencies
- PayPal Business accounts with enhanced features
- E-commerce solution integration
Who has better rates, Remitly or PayPal?
How much does Remitly charge?
Remitly has two transfer types—Express and Economy—whose fee structures and exchange rate margins add up to the overall price.
💰Express Transfer:
Suited for transfers close to instantaneous, the service comes at a higher price.
As an example, a debit card transfer of less than $500 from the US to the Philippines can cost between $3.99; another transfer of $1,000 to India may also come with the same price.
💰Economy Transfer:
This choice prefers cost savings with delayed delivery and usually little or no fee on most routes.
For example, sending up to $500 from the United States to the Philippines through a bank account can be free, whereas bigger transfers like $1,000 to India can also be free depending on the channel used.
💰Impact of Payment Method:
Bank account transfers are typically cheaper than the use of a credit or debit card, which may incur additional cash advance fees from the card issuer.
💰Destination and Transfer Amount:
Busy routes will typically have transparent, low fees, whereas not-so-busy routes might be more costly.
Large amounts to transfer are typically eligible for lower or no fees, particularly when utilizing the Economy mode.
In order to have an exact price, customers are free to use the Remitly Calculator link below.
💰Other Charges:
Remitly adds an exchange rate spread based on transfer timing and destination nation besides the fee of transfer.
This disguised fee can end up making the receiver get lower than the mid-market rate on higher transfers.
💰Special Offers and Promises:
- First Transfer Promotion: New clients are offered a complimentary first transfer, whose conditions are “one per customer” and for limited periods.
- Fee Refund Guarantee: Remitly guarantees refund of the fee in case the transfer is taking too long, providing additional protection to its consumers.
To get a precise estimate of the transaction, you can utilize the Remitly Calculator.
How much does PayPal cost to use?
PayPal uses the fee model with flat fees being employed alongside percentage-based fees, the latter varying according to the type of transaction and geolocation.
💰Sending money:
Home payments from a PayPal balance or from a bank are free and thus ideal for payment to friends and family members.
Card payments have a various percentage charge depending on the country (e.g. 2.9% or 3.4%) with an extra flat rate (e.g., $0.30 in the U.S.).
💰Withdrawal:
Charges for withdrawal from a Paypal personal account to bank account, cards, or checks might be applicable in certain regions, especially outside the U.S. and Europe.
You may wish to note that there are withdrawal limits per transaction or per frequency.
💰U.S. merchants fee structure:
- Card-present or QR code transactions through PayPal Zettle: 2.29% + $0.09
- QR code payments: 2.29%+ fixed fee $0.09
- Credit card and debit card payments: 2.89% or 2.99%+ fixed fee
- PayPal Checkout: 3.49% + fixed fee $0.49
- Transactions with Pay Later option: 4.99% + fixed fee $0.49
- Invoicing transactions: 2.99% to 4.99% + a fixed fee $0.49
For transactions requiring currency conversion, an additional 3~4% can be charged on top of domestic rates.
💰Other Merchant Fees:
Chargebacks ($20), payment disputes ($15), and record requests (between $10 and $30) are also chargeable by PayPal.
💰Recent Fee Changes:
PayPal increased its largest fee increase in a decade on January 13, 2025. It raised processing charges for its Buy Now Pay Later (BNPL) offering to 4.99% plus a per-transaction flat fee from 3.49%.
The 43% jump has made BNPL the most lucrative payment option on the platform, surpassing standard credit card processing fees.
💰Other Points to Consider:
The new fee regime is more punitative to third-party payment integrations and aimed at closed-loop wallet payments.
Although PayPal is universal and convenient, its percentage fee, fixed charges, and exchange fees can become costly for global businesses. especially for those who handle low-value payments.
Refer to PayPal’s detailed fee overview for precise estimates.
Which is better, Remitly or PayPal?
Remitly offers two transfer options: its Express service delivers funds within minutes to hours at a higher fee, while its Economy option takes 3–5 business days with lower costs.
In addition, Remitly provides features like cash pickup and mobile wallet deposits, all delivered via a mobile-first platform with round-the-clock support for urgent transfers.
On the other hand, PayPal is used in over 200 countries and supports 25 currencies, placing it on a list of most universally available payment systems globally.
It facilitates real-time transfer from one PayPal account to another, while transfer to a bank can take between 1 to 3 working days.
PayPal’s Seller Protection program aids merchants in addressing the risk of fraud, while PayPal’s Purchaser Protection offers protection for buyers as well.
In addition, the company has expanded its services to encompass point-of-sale functionality with PayPal Here and QR code payments.
Conclusion
Having undergone a careful examination, it is clear that both Remitly and PayPal have their specific strengths to offer.
Remitly takes the lead with its excellent exchange rates and fast transfer services that make it a perfect option for those who require fast and affordable remittances.
PayPal, however, is blessed with its wider digital platform with wider geographic reach and strong security measures.
Finally, make your selection based on your particular transaction needs and local factors—ongoing due diligence is necessary as these services continue to evolve.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
