Best Online Money Service: PayPal, Revolut, TransferWise, or Xoom?

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There is a fierce battle taking place in the lucrative foreign exchange (forex) market. At the retail level, many forex companies are vying for your loyalty. Traditionally, banks got our patronage while competing among themselves and money transfer services such as Western Union and MoneyGram. In the past ten years, the landscape has changed significantly with the rise of financial technology companies (FinTechs), which seek to disrupt traditional lines of business, namely, how money is sent between people.

FinTechs leverage the Internet and technology to create innovative, cost-saving processes. Also, they focus on keeping overhead costs low to pass savings onto customers. While banks continue to offer terrible rates wrapped in high/hidden fees, some FinTechs quote real-time rates and charge less than 1 percent or nothing at all.

There are at least a dozen online money transfer companies that offer currency conversion services with some focused more on remittance. For example, Remitly enables transfers from the United States to the Philippines, India, Mexico, Colombia, Ecuador, Guatemala, Honduras, Nicaragua, Perú, & El Salvador. However, Mexicans, Colombians, and so on can’t send money to someone in the United States. WorldRemit works similarly in that users can send money to 140 countries, but only send from fifty.

Here is a short-list of companies that facilitate online money transfers:

  • Azimo
  • CurrencyFair
  • MoneyGram
  • PayPal
  • PaySend
  • Payza (not recommended)
  • Remitly
  • Revolut
  • Skrill (not recommended)
  • TransferGo
  • TransferWise
  • Western Union
  • WeSwap
  • WorldFirst
  • WorldRemit
  • Xendpay
  • Xoom (Owned by PayPal)

Beyond Sending Money

Azimo doesn’t appeal to me. Although it charges low fees, its exchange rates aren’t the best. Furthermore, the pool of countries in which I can send money from is shallow and excludes the United States. Azimo appears to be a small, regional player in Europe and nothing more. For instance, I can only select from a handful of European countries when I attempt to set up my profile. As a global citizen, Azimo doesn’t offer me enough tools to manage my money. By contrast, PayPal, Revolut, and TransferWise provide multiple services for world travelers and remote workers. All three offer money transfer services, money accounts, and prepaid debit cards. As Azimo, WorldRemit, and others limit themselves to currency conversion services, a few big players are extending their leads. Let’s review PayPal, Xoom (a PayPal company), Revolut, and TransferWise for money transfers, money accounts, and prepaid debit cards.


PayPal Flat IconPayPal provides online payment and money transfer solutions. It enables its users to transact money through their account balances, bank accounts, and credit cards. Its money transfer and payment platforms include Braintree, Xoom, and Venmo. It “believes that now is the time to democratize financial services so that moving and managing money is a right for all citizens, not just the affluent.”


  • Buyer’s insurance
  • Credit
  • Donation transfer
  • Money transfer
  • Online money account
  • Online payment
  • Prepaid debit card


Revolut LogoRevolut is a digital banking alternative that includes a prepaid debit card, currency exchange, and peer-to-peer payments. It has developed a platform that allows users to transfer, exchange, and spend money with a multi-currency card that is accepted everywhere. It is on “a mission to build a fair and frictionless platform to use and manage money around the world.”


  • Budgeting
  • Credit
  • Cryptocurrency trading
  • Mobile phone insurance
  • Money transfer
  • Online money account
  • Prepaid debit card
  • Saving
  • Travel/medical insurance


TransferWise LogoTransferWise has financial services for everyone including people who travel, live, and work abroad. Sending money overseas with TransferWise is up to eight times cheaper than banks, and its borderless account allows users to hold, manage, and spend money in 28 different currencies. It provides “the fairest, easiest way to manage your money internationally.”


  • Money transfer
  • Online money account
  • Prepaid debit card
Money Transfer

Local & Single-Currency

  • PayPal offers single-currency transfers. When users send and receive money in the same currency, no fee is applied. Sending money in the same currency can be accomplished through PayPal and Venmo (within the U.S. only).
  • Revolut offers single-currency transfers. When users send and receive money in the same currency, no fee is applied.
  • TransferWise doesn’t offer single-currency transfers. It’s a currency conversion service, so it doesn’t receive and send out the same currency in a single transfer.

International & Multiple Currencies

Regarding foreign exchange transactions, there are a few items to consider:

  • The quoted exchange or conversion rate. The best exchange rate you can get is known as the real-time or mid-market rate. I call it the “Google rate” because Google showcases real-time rates between two currencies in its search results. Most money transfer providers quote non-real-time rates to profit from bid-ask spreads. For example, if real-time rates are 1.31/1.32, a dealer might quote 1.28/1.36. The dealer would buy at 1.28 and sell at 1.35.
  • The fixed or percentage-based fee. Companies will quote a fixed or percentage-based rate to convert currencies. For example, $3.99 or 1 percent of the total amount exchanged.
  • Funding methods. Funding methods may include bank transfer, debit card, credit card, in-house credit, or cash for in-person transfers.
  • Ways to send money. Ways to send money might include in-person, phone, online, and app.
  • Ways to receive/collect money: Ways to accept money might include bank account, online money account, and cash pickup.
  • Processing times. Processing times vary depending on how a transfer is funded, sent, and received. For online transfers, the process can take minutes to a few business days.
  • Transparency. Transparency refers to how transparent a company is regarding its exchange rates, fees, and processing times. For example, the company provides a transfer calculator/transaction estimator and does not force a user to create an account or submit a payment before getting transaction details.
  • Tracking. Tracking methods might include SMS/mobile notification, email notification, account activity/status, and customer support.
  • Currencies. Currencies matter to the point that the currency or currencies you need are supported.

PayPal doesn’t use mid-market exchange rates. They state, “We receive a wholesale rate quote from our bank twice a day.” PayPal charges a currency conversion fee of 2.5 to 3.5 percent. Funding methods include PayPal balance, bank transfer, debit card, credit card, and PayPal Credit. Users can send money through PayPal’s website and app. Recipients must have PayPal accounts to receive money. Regarding transparency, details are all over the place, for example, on its PayPal fees page, and in its user agreement. Also, customers learn of transaction details right before clicking submit.

Xoom doesn’t use mid-market exchange rates. They say, “Exchange rates are based on world currency markets, which change all the time. Foreign exchange rates listed in newspapers or elsewhere are generally wholesale or inter-bank rates that are not available for individuals.” Xoom charges a fixed fee, which may be waived depending on the payment method, transfer amount, currency selection, and receiving option. Funding methods include bank transfer, debit card, and credit card. Users can send money through Xoom’s website and app. Recipients can receive money in one of three ways including cash pickup, bank deposit, or home delivery. Regarding transparency, Xoom provides fee and exchange rate calculators on its “Fees and Exchange Rates” page.

Revolut uses mid-market exchange rates and states,

If you exchange currencies on weekdays (Mon-Fri UTC) you will receive the interbank exchange rate without any markup on all currencies except for Thai Baht, Russian Rubbles, Ukrainian Hryvnia, and Turkish Lira where we add a 1% markup, with a small 0.5% fee for anything above £5,000 each month. On the weekend (Sat-Sun UTC) we fix the rate we provide to protect ourselves against fluctuations, this means we apply markups of:

  • +0.5% to all major currencies (ie. USD, GBP, EUR, AUD, CAD, NZD, CHF, JPY, SEK, HKD, NOK, SGD, DKK, PLN, and CZK); and
  • +1% to all other currencies including THB, RUB, UAH and TRY. (this means over the weekend THB, RUB, UAH, and TRY have a 2% markup.)

Since the interbank exchange rate is constantly fluctuating, the rate that we lock in for the weekend may not be the same as the rate that is available when the markets open on Monday morning. (Source: Revolut-What foreign exchange rate will I get?)

Revolut does not charge a currency conversion fee for transfers up to £5,000 or equivalent per rolling month, after which a 0.5 percent fair usage fee applies. Funding methods include bank transfer, debit card, and credit card. Users can send money through Revolut’s app. Recipients can receive money into their bank accounts and Revolut money accounts.

TransferWise uses mid-market exchange rates. It charges a combination of percentage and fixed fees. Percentage fees range from 0.5 to 1 percent, in most cases, depending on the payment method, transfer amount, and currency selection. Funding methods include bank transfer, debit card, and credit card. Users can send money through TransferWise’s website and app. Recipients can receive money into their bank accounts and TransferWise money accounts. Regarding transparency, TransferWise has an exchange rate and fee calculator on its homepage.

PayPal and Xoom don’t provide mid-market rates, and their fees are high compared to other providers. Revolut and TransferWise exchange at mid-market rates and charge small fees. While Revolut promotes mid-market rates and free transfers, these details are somewhat misleading because it has weekend markups and monthly limits. TransferWise gets a slight edge because it’s straightforward and transparent about its exchange rates and fees.

CompanyMid-market ratesFeesTransparency


Online Money Account

PayPal offers an online money account, which allows users to deposit and withdraw funds, send and receive funds, request funds, pay for goods and services online, and hold and convert multiple currencies. Xoom doesn’t offer an online money account.

Revolut offers an online money account, which allows users to deposit and withdraw funds, send and receive funds, request funds, and hold and convert multiple currencies. Users can get international bank account numbers (IBANs) for the U.K. and Europe.

TransferWise offers an online money account, which allows users to deposit and withdraw funds, send and receive funds, request funds, and hold and convert multiple currencies. Users can get bank account numbers for the U.K., U.S., Australia, and Europe.

All three companies offer online money accounts with different benefits and drawbacks. For example, PayPal facilitates paying for goods and services online but doesn’t offer IBANs. Revolut and TransferWise offer IBANs but don’t support shopping online.

Prepaid Card

The big three all have prepaid debit cards as a regional product. For example, PayPal’s card is available to U.S. citizens whereas Revolut and TransferWise have for UK, EEA, and Swiss residents. Revolut and TransferWise cards are still too new to assess.

When comparing prepaid debit cards, consider the following:

  • Features and benefits
  • Delivery method/cost, card purchase, secondary cardholder, and replacement fees and options
  • Monthly fees
  • Transaction, purchase, withdrawal, and ATM fees
  • Daily and monthly transaction limits
  • Funding fees and options to reload, deposit, transfer, and top up
  • Card issuer and operator (the company behind the card like Mastercard or Visa)
  • Rewards and perks
  • Exchange rate and currency conversion fees and policies

Suppose you want to know about monthly fees. PayPal charges a monthly fee of $4.95 whereas Revolut and TransferWise don’t levy monthly/annual account fees.

Final Word

PayPal, Revolut, and TransferWise offer more than many of their money transfer competitors but none of these companies offer a perfect solution. Furthermore, Revolut and TransferWise, which are startups, don’t have the same global penetration as PayPal and Western Union. For example, Revolut has only begun signing up U.S. and Canadian citizens for early access, which means I’m yet to try its app. However, I would like to use Revolut to convert currencies for free.

Each company has strengths and weaknesses, so it’s a matter of understanding your needs and aligning them with the correct products and services. PayPal has a robust, global presence concerning online business and e-commerce. Also, it’s ramping up its efforts to serve the unbanked. Revolut is expanding and introducing products like low-cost travel and mobile phone insurances. TransferWise is evolving and offers “borderless accounts” and transparent currency conversion services. Given the strengths of each, global citizens, international business people, and remote workers should sign up to all three companies or the two that make the most sense for them.


Chad Tennant

Chad is an online marketer, content creator, and advisor. His primary goals are to help businesses and individuals achieve growth and financial success. Learn more at

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