Many of us need to send money across borders for personal or business reasons. PayPal is a common choice, but it’s not always the best. The World Bank’s June 2024 report shows that sending money through banks can cost up to 13.40% of the amount sent.
I’ve looked into other ways to send money abroad. I found five alternatives: Wise, Payoneer, Skrill, OFX, and Xoom. Each has its own benefits, making them great options for sending money.
Why Look for Alternatives to PayPal?
PayPal is convenient, but it has downsides. High fees and expensive currency conversions can hurt your wallet. For example, sending big amounts or doing lots of transactions can be costly.
PayPal charges a 5% fee for international payments. Its exchange rates are also 3-4% higher than the bank rate. These issues are big problems for people sending money abroad.
Transaction speeds can also be a problem. Money might take a while to arrive, which can hurt businesses and freelancers. This makes finding PayPal alternatives important for saving money on international payments.
It’s key to look for services that are clear, charge less, and move money faster.
Dealing with international payment issues? Looking at other options can help. You can find services that meet your needs better.
5 Alternatives to PayPal for Payments Abroad
Many people and businesses look for international payment solutions that save money and are easy to use. PayPal is well-known, but its fees and exchange rates can be high. Here are five great alternatives to PayPal for sending money abroad.
- Wise: Wise is known for clear fees and a multicurrency account that holds up to nine currencies. It offers good exchange rates and low fees, making it a top choice. Most transfers take one to two days.
- Payoneer: Payoneer helps freelancers by sending payments in over 150 currencies to more than 190 countries. It’s great for global business because of its flexible withdrawal options.
- Skrill: Skrill is fast to set up and has low fees. It’s a digital wallet that makes sending money easy across different channels.
- OFX: OFX has no transfer fees and focuses on customer service. It’s good for big transactions and most money is received within 24 hours.
- Xoom: Xoom, managed by PayPal, sends money quickly, often in minutes. It works in over 131 countries and has fees similar to banks.
Choosing the right service is key for a business. For more tips on sending money abroad, check out more options and compare the best money transfer services.
| Service | Key Features | Speed | Fees |
|---|---|---|---|
| Wise | Multi-currency account, low fees | 1-2 days | Starting from 0.43% |
| Payoneer | Supports over 150 currencies, global reach | 1-3 days | Varies by transfer |
| Skrill | Quick setup, low fees | Minutes to hours | Starting from 1.90% |
| OFX | No transfer fees, good customer service | 24 hours | No fees |
| Xoom | Fast transfers, managed by PayPal | Minutes | Competitive |
Payoneer: Ideal for Freelancers
Payoneer is a top pick for freelancers and businesses needing easy global payments. Freelancers face complex international transactions often. Payoneer provides strong solutions tailored for them.
It supports over 150 currencies, making global payments easy. You can withdraw funds to bank accounts or use a Payoneer Mastercard. This offers both flexibility and convenience.
Payoneer is also cost-effective. It charges just 0.5% for transfers between accounts. Receiving payments from clients is free, which is a big plus. This helps freelancers on platforms like Upwork and Fiverr keep more of their earnings.
The demand for global payments is growing fast. By 2025, the market is expected to hit $156 trillion. Payoneer’s aim to simplify international transactions will help freelancers and businesses thrive in this new landscape.
Skrill: A Versatile Alternative
Skrill is a digital wallet that makes sending money easy and fast around the world. It’s easy to set up, which is great for everyone. The fees for sending money internationally are low, helping both personal and business users manage their money well.
Skrill is flexible, accepting many payment methods like debit cards and bank transfers. It’s popular for quick access to funds and easy international money sending. It works in over 120 countries and handles 40 different currencies, reaching a wide audience.
While Skrill has low fees for international transfers, there’s a fee for converting currencies. This fee can go up to 4.99% for some transactions. This is something to think about when deciding if Skrill is right for you.
OFX: No Transfer Fees
OFX is a top choice for sending money abroad without extra fees. It doesn’t charge any fees for international money transfers. This makes it great for both personal and business use. Plus, there are no fees to open an account or for monthly Global Currency Account management.
OFX’s exchange rates have a small markup. This markup is often lower than what banks charge. Banks might add a fee of 1.0% to 3.0% on currency conversions. But OFX lets you send up to $1,000 USD without any hidden fees.
OFX supports sending money to over 170 countries. They can complete transactions in 1 to 3 business days. This is much faster than banks, which can take longer.
They have a network of 115 bank accounts worldwide. This helps them offer better rates and lower costs. Avoiding bank fees for international wire transfers can save a lot of money, from $35 to over $500.
For a secure, efficient, and affordable way to send money abroad, OFX is a good choice. With no fees, you can focus on the value of your money moving across borders, not the costs.
Xoom: Speed and Accessibility
Xoom is known for its quick and flexible international money transfers. It’s owned by PayPal and sends money to nearly 160 countries fast. This makes it great for urgent needs.
Users can fund transfers with bank accounts, debit cards, or PayPal balances. This variety is very convenient for me.
Fast transfers are key for urgent payments. Xoom’s fees are often lower than banks, which is a big plus. This means I can send money quickly without spending too much.
Xoom’s services are easy to use. The mobile app and simple interface are perfect for those who like tech. My experiences with Xoom have always been good. I highly recommend it for fast, reliable international money transfers.
