Western Union vs. PayPal vs. OFX – Detailed Comparison

Quick Verdict

PayPal is the best choice for online transactions due to its user-friendly interface and buyer/seller protection. OFX is best for large transfers due to its competitive exchange rates and lack of fees above $10,000. Western Union is a good option for those who need cash pickup or prefer in-person transactions, but be mindful of the higher fees and less competitive exchange rates.

Western Union has the widest availability and payout options, including cash pickup, but its fees and exchange rates can be less competitive.
PayPal is convenient for online transactions and offers buyer/seller protection, but its fees can add up, especially for international transfers and currency conversions.
OFX offers competitive exchange rates for larger transfers and has no transfer fees above a certain threshold, but it only supports bank-to-bank transfers.

Key Specs – Side-by-Side

Metric	Western Union	PayPal	OFX
Price	Fees vary depending on currency pair, transfer speed, amount, delivery method, and funding method. Fees for transfers up to $1,000 can be under $5, but they can also be more. For sending $5,000 within the US, it would cost $243 with a credit card and $50 via bank transfer. Exchange rates offered by Western Union can be as high as 20% worse than the mid-market rate.	For a $100 domestic transaction, the fee is approximately $3.98 (3.49% + $0.49). International transactions incur additional fees. Commercial transactions typically charge 2.9% + $0.30 for domestic payments and higher for international transactions (around 4.4% + a fixed fee). PayPal adds a currency conversion fee on top of the exchange rate used, typically ranging from 3% to 4% above the mid-market rate.	$15 USD for transfers below $10,000 USD (or equivalent). No transfer fees for amounts over $10,000 USD (or equivalent). Markup typically ranges from 0.4% to 2% above the mid-market rate, depending on currency pair and transaction size. Larger transfers may receive more favorable rates.
Features	Wide availability with over 500,000 agent locations in over 200 countries and territories. Multiple options: online, app, or in person. Various payout methods: cash pickup, direct to bank accounts, or mobile wallets (in select countries).	Widely accepted for online shopping and sending money. Mobile payment app is user-friendly. Purchase Protection policy offers a guarantee to receive goods/services or get money back. Supports 25 currencies.	Competitive exchange rates for medium to large transfers. No transfer fees for transfers above threshold amounts. 24/7 customer support in multiple languages. Supports remittances in over 50 currencies. Only supports bank-to-bank transfers.
Rating	3.9/5	4.7/5	4.4/5

Overall Comparison

Western Union: Extensive global reach with cash-based options, but higher fees and less competitive exchange rates.
PayPal: User-friendly online platform with buyer protection, but fees can be high, especially for international transfers.
OFX: Competitive rates for large transfers with no fees above $10,000, but limited to bank-to-bank transfers.

Pros and Cons

Western Union

Pros:

Wide availability with over 500,000 agent locations in over 200 countries and territories.
Multiple options: online, app, or in person.
Various payout methods: cash pickup, direct to bank accounts, or mobile wallets (in select countries).
Has been in operation since 1851.
Well-reviewed mobile app.
Quick service.
Flexible payout methods (bank transfers, cash payouts, bill payments, and mobile wallet transfers).
Send money to 200+ countries and territories.
Both digital and in-person transfers, including mobile app transactions and cash-based services.

Cons:

Fees can be high, especially for smaller transfers.
Exchange rates may be less competitive compared to online alternatives.
Delivery times and fees are not always clear.
Complex pricing structure.
Exchange rates often lag behind those of other international transfer providers, with hidden currency conversion costs adding uncertainty to your total expenses.

PayPal

Pros:

Widely accepted for online shopping and sending money.
Mobile payment app is user-friendly.
Purchase Protection policy offers a guarantee to receive goods/services or get money back.
Convenient for online transactions with a user-friendly interface.
Offers buyer and seller protection.

Cons:

Fees for sending/receiving money can add up, especially for international transactions.
Customer service can be slow.
Funds may be held for up to 21 days for new sellers.
Currency conversion fees can be high.
The dispute resolution process can be slow and cumbersome.

OFX

Pros:

Competitive exchange rates for medium to large transfers
No transfer fees for transfers above threshold amounts
24/7 customer support in multiple languages
Secure platform with robust security measures
User-friendly mobile app and online platform

Cons:

Only supports bank-to-bank transfers
Not suited for same-day or instant transfers
Exchange rates are not transparent and may include a markup
Fees apply for transfers below $10,000 USD (or equivalent)
No live chat support

User Experiences and Feedback

Western Union

What Users Love

Easy availability of agent locations.
Quick service.
Easy to use.
Fast transfers.
Quick and straightforward sign-up process.

Common Complaints

Delays.
High fees (especially for smaller amounts).
Customer service issues.
App can be glitchy, particularly on Android.
Some users have reported bad experiences.
App clunky with delays between actions and menus.

Value Perception

Western Union scores 4/5 for its extensive global reach, wide agent network, and cash-based transfer options, making it one of the most accessible money transfer services worldwide.
Western Union receives a 4/5 rating for its quick and straightforward sign-up process, allowing users to register easily with just a phone number.

User Recommendations

Rated 4.2/5 on Trustpilot.
Most reviewers report that the apps are very intuitive and easy to use.

PayPal

What Users Love

Easy to use with a simple interface for seamless transactions.
Secure platform with encryption and fraud detection.
Convenient for online transactions and integrates well with websites.
Offers a seamless transaction experience to people who use it for personal use.
Security is good and availability to be used on many websites.

Common Complaints

High fees, especially for international transfers and currency conversions.
Customer support can be slow and unhelpful.
Accounts can be suspended for no reason, with long reactivation times.
Lack of transparency regarding fees.
Limited customer support response in some cases.

Value Perception

Some users find the consumer fee high.
Fees are higher than other competitors in market but it's okay compared to services.

User Recommendations

I feel like this experience is easier than the current one. I would use this every day without issues.
Can't live without PayPal.
Good and most popular payment processor trusted by buyers.

OFX

What Users Love

Easy to use platform
Fast transfers
Low service fees
Excellent customer service, especially from account managers
Competitive exchange rates

Common Complaints

Delays in transfer times
Customer service can be slow
Funds may be held for compliance checks
Lack of pricing transparency
No cash pickup option

Value Perception

OFX is great for large sum transfers at affordable rates that do not need to be received quickly.

User Recommendations

OFX is the best money transfer service for most people who want to transfer large amounts (over $7000 USD) and are happy setting up transfers online.
OFX has consistently given me the best rate and fastest service to Mexican pesos.