Using PayPal to Transfer Money Internationally (2026)
Many people consider using PayPal to transfer money internationally because it is already on their phone and the recipient probably has an account. It is a convenient option, and yes, it works. But using PayPal to transfer money internationally comes with a cost that catches most senders off guard: a currency conversion markup of 3% to 4% above the mid-market rate, on top of a separate transfer fee. On a $1,000 transfer, that typically adds up to $35 to $50.
To transfer money internationally with PayPal, you only need the recipient's email address or phone number and an active PayPal account on both sides. The process takes a few minutes. The problem is not the process; it is the price. Specialist services like Wise charge under $10 for the same transfer at the real mid-market rate, saving you $25 to $40 every single time.
This guide covers exactly how to use PayPal to transfer money internationally, what the fees actually are with real examples, and when it makes more sense to switch to a cheaper alternative. If you are already committed to PayPal, you will know exactly what to expect. If you are comparing options, you will have the numbers to decide.
Find the best, cheapest, and safest way to send money abroad
Does PayPal Allow International Money Transfers?
Yes, PayPal does allow international money transfers to over 200 countries and regions. The recipient needs a PayPal account to receive funds, and both parties need to be in countries where PayPal supports cross-border transfers. Most major markets are covered, though some regions only support receiving and not sending.
When you use PayPal to transfer money internationally, the funds move from your PayPal balance, a linked bank account, or a debit or credit card directly into the recipient's PayPal balance in their local currency. PayPal applies its own exchange rate at the point of conversion, which includes its markup.
The key question is not whether PayPal allows international transfers but what it costs. The PayPal international money transfer fee structure is made up of two parts: a conversion markup built into the exchange rate, and a separate transfer fee. Understanding both is essential before you commit to sending.
How to Use PayPal to Transfer Money Internationally
Learning how to use PayPal to transfer money internationally takes about five minutes on the app or website. Here is the step-by-step process:
- Log in to your PayPal account.
- Click Send & Request, then Send Money.
- Enter the recipient's email address or mobile number.
- Select Friends and Family for personal transfers (lower fee than Goods and Services).
- Enter the amount in your currency.
- Review the exchange rate and fees shown on the confirmation screen carefully.
- Confirm the transfer. Funds appear in the recipient's PayPal balance within minutes.
Step 6 is where most senders lose money. PayPal shows you the rate it is applying, but it does not label the markup clearly. Before you confirm, open a second tab and check the mid-market rate on Google. If PayPal's rate is 3 to 4% worse, that gap is the hidden fee. When you transfer money internationally with PayPal, that gap costs you real money on every transfer.
PayPal International Money Transfer Fee Breakdown
The PayPal international money transfer fee is higher than most senders expect. Two separate charges apply: the exchange rate markup and the transfer fee.
Cost Component | PayPal | Wise | Xe |
|---|---|---|---|
Exchange rate markup | 3 to 4% above mid-market | 0% (mid-market rate) | 0% to 0.5% |
Transfer fee | Variable, up to 5% | 0.4% to 2% | Variable, often low |
Total on $1,000 | $35 to $50 | $6 to $12 | $8 to $15 |
Speed | Minutes to hours | Instant to 2 days | Instant to 1 day |
On a $1,000 USD to EUR transfer, PayPal's 3.5% conversion markup costs $35 before you add the transfer fee. Wise charges a flat fee of roughly $6 to $9 at the real mid-market rate. The saving is $26 to $44 on a single transfer. For anyone who regularly uses PayPal for international transfers, the annual cost difference runs into hundreds of dollars.
The PayPal international money transfer fee also varies by funding source. Using a credit card adds another 2.9% plus a fixed fee. Using a PayPal balance or debit card is cheaper. Always fund from your PayPal balance or a linked bank account when using PayPal to transfer money internationally to minimise the total cost.
PayPal buries its markup inside the exchange rate, not as a visible line item. Here is what it costs on common transfer amounts:
- $500 transfer: approximately $17 to $25 in combined markup and fees
- $1,000 transfer: approximately $35 to $50 in combined markup and fees
- $2,000 transfer: approximately $70 to $100 in combined markup and fees
- Wise equivalent: $6 to $20 on the same amounts, mid-market rate, no hidden markup
When Using PayPal to Transfer Money Internationally Makes Sense
Despite the cost, there are genuine situations where using PayPal to transfer money internationally is the right call. The platform is widely accepted, and sometimes the recipient's preference leaves you with no alternative.
- Both parties already use PayPal and the amount is small (under $150), where the fee difference is a few dollars.
- Paying for goods or services: PayPal's buyer protection is genuinely valuable for international transactions with sellers you do not know.
- The recipient only accepts PayPal: some freelancers or platforms require it. Minimise cost by funding from a balance or debit card.
- Immediate delivery needed: balance-funded PayPal transfers arrive in minutes when urgency matters more than cost.
Outside these situations, if you are transferring money internationally with PayPal purely out of habit, switching to Wise or Xe takes about ten minutes to set up and consistently saves you $25 or more per transfer.
Better Alternatives When You Use PayPal to Transfer Money Internationally
The three services below are the most cost-effective replacements when using PayPal to transfer money internationally is costing you too much. Each uses the real mid-market rate or close to it, and each is regulated and trusted by millions of users.
Wise
Wise charges a transparent fee of 0.4% to 2% with no exchange rate markup. On a $1,000 transfer, the total cost is typically $6 to $12, compared to $35 to $50 when you transfer money internationally with PayPal. Wise is regulated by the FCA in the UK and FinCEN in the US, and over 50% of its transfers arrive within one hour.
For anyone who regularly sends money abroad, Wise is the most direct upgrade from PayPal. The sign-up takes about ten minutes, and you can hold balances in 40+ currencies. The savings compared to using PayPal to transfer money internationally are immediate and consistent on every transfer.
Wise gives you the real exchange rate. PayPal gives you the real rate minus 3 to 4%. On every transfer, you pay for that gap.
- Mid-market exchange rate: no conversion markup
- Transparent fee: 0.4% to 2%, shown before you confirm
- Fast delivery: over 50% of transfers arrive within one hour
- FCA and FinCEN regulated: client funds safeguarded separately
- Multi-currency account: hold and spend in 40+ currencies
Xe
Xe is particularly strong for less common currencies and large transfers. It covers 130+ currencies, which is far more than PayPal's roughly 25. For senders who need to reach destinations where a PayPal international transfer is limited or the rates are worse than average, Xe provides a reliable and cost-effective alternative.
Xe is part of the Euronet Worldwide group and has been operating since 1993. Many major currency pairs transfer instantly or within minutes. There is no markup on the exchange rate for most corridors, and fees are transparent.
Xe covers corridors that PayPal prices poorly or does not support at all.
- 130+ currencies covered
- Instant or same-day transfers on major pairs
- No hidden markup on most corridors
- Part of Euronet Worldwide: financially stable and regulated
Remitly
Remitly is built for remittance corridors: USD to Philippines, USD to India, USD to Mexico, and dozens more. Express transfers on these routes often arrive within minutes, and fees are among the lowest available. For first-time senders, promotional rates make the initial transfer almost free compared to using PayPal to transfer money internationally on the same corridor.
Remitly also supports cash pickup through a global agent network, useful when the recipient does not have a bank account. For regular remittance senders, Remitly is consistently one of the cheapest options and a significant improvement over PayPal.
If you regularly transfer money to family abroad on high-volume routes, Remitly's fees and speed are hard to beat.
- Express delivery: minutes on major remittance corridors
- Promotional rates for new senders
- Cash pickup available via global agent network
- Low fees on USD to INR, PHP, MXN, and dozens more
PayPal vs Banks for International Transfers
Both PayPal and traditional banks are expensive for international transfers. Banks charge a flat SWIFT wire fee of $10 to $50 plus a 2 to 4% FX markup. When you transfer money internationally with PayPal, you pay a 3 to 4% conversion markup plus a transfer fee. On a $1,000 transfer, a bank like HSBC or Chase typically costs $40 to $65; PayPal costs $35 to $50. Both are significantly more expensive than Wise at $6 to $12.
If you are using a bank wire and considering PayPal as a cheaper option, the saving is marginal at best. The real saving comes from a specialist service. On $1,000, Wise saves you $30 to $55 compared to a bank wire, and $25 to $40 compared to using PayPal to transfer money internationally.
Compare PayPal Against Specialist Services
Use the tool below to see live rates and fees for your specific transfer. Enter the amount and corridor to see exactly how much more you pay when you transfer money internationally with PayPal versus a specialist service.
Common Questions About PayPal International Transfers
Every PayPal international transfer follows the same mechanics, but the cost varies by corridor and funding method. If you want to use PayPal to transfer money internationally as cheaply as possible, always fund from your balance and send to a Friends and Family recipient. A PayPal international transfer funded by credit card adds another 2.9% on top of the existing markup, pushing the total cost above 7% on some corridors.
Does PayPal allow international money transfers between currencies it does not natively support? In those cases, PayPal typically converts through USD as an intermediate currency, which means the recipient may see an additional conversion on their end. This is another reason why, for any corridor where transfer money internationally with PayPal involves an unusual currency pair, a service like Xe covers 130+ currencies with far better rates. A PayPal international transfer to an unsupported currency can cost 6 to 8% in total conversion losses.
To summarise: if you need to use PayPal to transfer money internationally, fund from your balance and choose Friends and Family to minimise the PayPal international money transfer fee. For anything above $150, compare a PayPal international transfer against Wise or Xe using the tool on this page before you confirm.
When transfer money internationally with PayPal is unavoidable because the recipient insists on it, at least use the platform strategically. For larger regular transfers, opening a Wise account takes ten minutes and means each subsequent PayPal international transfer becomes the last one you overpay on.
Frequently Asked Questions
Does PayPal allow international money transfers?
Yes, PayPal allows international money transfers to over 200 countries and regions. Both sender and recipient need PayPal accounts. The transfer typically arrives within minutes when funded from a PayPal balance. The main limitation is cost: PayPal charges a 3 to 4% currency conversion markup plus a transfer fee, making it one of the more expensive ways to send money abroad.
How do I use PayPal to transfer money internationally?
To use PayPal to transfer money internationally: log in and go to Send and Request, then Send Money. Enter the recipient's email or phone number. Choose Friends and Family for personal transfers. Enter the amount, review the exchange rate and fees on the confirmation screen, then confirm. Funds arrive in the recipient's PayPal balance within minutes. Always fund from your PayPal balance or a debit card to keep costs as low as possible.
What is the PayPal international money transfer fee?
The PayPal international money transfer fee has two components. First, a currency conversion markup of 3 to 4% above the mid-market exchange rate, which is built into the rate PayPal shows you. Second, a transfer fee that varies by country and funding method. On a $1,000 transfer, total costs typically fall between $35 and $50. Wise charges $6 to $12 for the same transfer at the real mid-market rate.
Is using PayPal to transfer money internationally safe?
Using PayPal to transfer money internationally is safe from a security standpoint. PayPal is a regulated financial service with strong encryption and fraud monitoring. For Goods and Services payments, buyer protection applies if something goes wrong. For Friends and Family transfers, there is no dispute mechanism. The real concern is financial: the high conversion fees mean the recipient receives significantly less than with a specialist service.
How long does it take to transfer money internationally with PayPal?
When you transfer money internationally with PayPal using your balance or a debit card, funds arrive in the recipient's PayPal balance within minutes. If you fund from a bank account, it takes 3 to 5 business days before the transfer is sent. Once received, the recipient can spend instantly or withdraw to their bank, which adds 1 to 3 more business days depending on their local bank.
What is the maximum amount you can transfer internationally with PayPal?
PayPal's sending limit depends on your verification status. Unverified accounts are typically capped at around $500 per month for international transfers. Verified accounts have higher limits adjusted by PayPal based on history. For transfers above $5,000, specialist services like Wise or Xe offer clearer limits and better rates. Always verify your account before attempting large transfers.
Can PayPal transfer money internationally directly to a bank account?
PayPal transfers money to the recipient's PayPal balance, not directly to their bank account. The recipient then needs to withdraw from PayPal to their bank, which adds 1 to 3 business days. If you want to send directly to a bank account without the recipient needing a PayPal account, Wise supports direct bank-to-bank transfers in 40+ currencies with no intermediate step required.
Why is using PayPal to transfer money internationally so expensive?
PayPal makes money on international transfers through its currency conversion markup. By setting its exchange rate 3 to 4% worse than the mid-market rate, PayPal earns the difference on every transfer. This markup is not shown as a separate fee line, so many senders do not notice it. On a $1,000 transfer, the markup alone costs $30 to $40. Specialist services like Wise apply no exchange rate markup, which is why they are significantly cheaper.
What currencies does PayPal support for international transfers?
PayPal supports approximately 25 currencies for international transfers. This is far fewer than Wise (40+ currencies) or Xe (130+ currencies). If you need to send to a less common currency, PayPal may route through USD, which adds another conversion cost on the recipient's end. Always confirm your destination currency is supported before committing to a PayPal international transfer.
How to reduce costs when using PayPal to transfer money internationally?
To reduce costs: fund from your PayPal balance or a linked debit card rather than a credit card, which adds 2.9% plus a fixed fee. Choose Friends and Family rather than Goods and Services for personal transfers. Compare PayPal's offered rate against the mid-market rate before confirming. For transfers above $200, switching to Wise or Xe will almost always save you $20 to $40 per transaction.
Does PayPal charge the recipient for international transfers?
For Friends and Family transfers, the recipient typically does not pay a fee to receive funds in their PayPal balance. However, if they convert the received currency within PayPal, a conversion fee may apply. For Goods and Services transfers, the recipient pays a receiving fee of 3 to 5% plus a fixed amount. Always check PayPal's fee schedule for your specific country pair, as fees vary significantly by market.
Is Wise better than PayPal for international transfers?
For most international transfers, Wise is significantly better than PayPal on cost. Wise uses the real mid-market exchange rate with a transparent fee of 0.4% to 2%. PayPal adds a 3 to 4% conversion markup plus a transfer fee. On a $1,000 transfer, Wise costs $6 to $12; PayPal costs $35 to $50. Both are regulated and safe. Choose PayPal only if the recipient insists on it and will not use any other platform.
Can I use PayPal to transfer money internationally for business?
Yes, PayPal supports international business payments through Goods and Services, which includes buyer protection. However, fees are higher than personal transfers, and the recipient also pays a receiving fee. For regular business payments to international contractors or suppliers, Wise Business and Xe are more cost-effective and support batch payments and multi-currency accounts.
What is the cheapest way to transfer money internationally?
The cheapest way to transfer money internationally is to use a specialist service that charges no exchange rate markup. Wise charges 0.4% to 2% with the real mid-market rate. Xe covers 130+ currencies with competitive rates on exotic corridors. Remitly is lowest-cost for major remittance routes. All three are significantly cheaper than using PayPal to transfer money internationally or sending via a bank wire. Use the comparison tool on this page to see live rates for your specific corridor.
How do I track an international transfer made with PayPal?
You can track an international transfer made with PayPal by going to your account's Activity page and clicking on the transaction. PayPal shows the transfer status: pending, in transit, or completed. Transfers between PayPal accounts usually confirm within minutes. For Friends and Family transfers, PayPal does not offer dispute resolution if there is a problem, which is another reason to keep high-value international transfers on platforms with stronger protection.
Using PayPal to transfer money internationally is straightforward, but the 3 to 4% conversion markup makes it consistently one of the most expensive options. For transfers above $100, comparing PayPal against Wise or Xe before you send takes two minutes and typically saves you $20 to $40. Use the comparison tool above to see exactly what you would save on your specific corridor.
Mohammad Humaid
Verified AuthorMo is the founder of MoneyTransferStore. As an expat who has experienced the challenges of sending money across borders himself, he set out to help others like him avoid hidden fees and unfair exchange rates on international transfers. With a background spanning fintech, payments, and Web3, Mo brings years of practical experience to building a platform focused on transparency and trust.
