Almost everyone has a PayPal account, which is exactly why so many people use it to send money abroad without a second thought. That convenience comes at a price. PayPal makes most of its money on the exchange rate, adding a markup of about 3.5% on a dollar-to-euro send, which is close to what a bank charges. Revolut costs a fraction of that.
On a $1,000 transfer on a weekday, Revolut on its free plan costs about $1.00, while PayPal costs about $35.00. For sending money, Revolut wins by a wide margin. The figures below use the current mid-market reference; Wise may use an account-holder API estimate, while other providers use stored published fee and markup models rather than live quotes.
- Revolut is far cheaper for sending money. Its small spread beats PayPal's markup of about 3.5% by a wide margin.
- PayPal's cost hides in the rate. There is often no obvious fee, but the exchange rate carries a markup of several percent.
- PayPal's strength is convenience. Everyone has it, and it is built for paying online, not for cheap transfers.
- Revolut has catches of its own. A monthly limit and a weekend markup, but even with those it usually beats PayPal.
How PayPal charges
PayPal (and its Xoom service) is one of the most widely used ways to move money online, and its reach is the point. You can send to an email address or a phone number, and the recipient gets it in their PayPal balance almost instantly. For paying for things online, it is hard to beat.
For sending money abroad, though, the pricing is steep. PayPal adds a markup of about 3.5% to the exchange rate on a route like this one, and that is where most of the cost lives. The exact fee and markup vary by route and by how you pay, but the all-in cost is usually several percent.
Here is what that looks like on a $10,000 transfer: the fee you can see in gold, the cost hidden in the rate in red.
PayPal's bar is almost entirely red. The markup dwarfs any fee on the checkout screen.
How Revolut charges
This site's representative Revolut model uses a small spread on major pairs, a roughly US$1,450 Standard allowance, and 0.5% on the excess. It is a fallback scenario, not a universal plan: country-specific allowances, overage terms, paid-plan prices, and availability differ.
So a $1,000 weekday transfer on Standard costs only its small spread, about $1.00, a small fraction of what PayPal charges on the same transfer.
Head to head, by amount
Revolut is cheaper at every size, and the gap is large. Here is the same dollar-to-euro transfer at three sizes.
$1,000
Inside the limit, Revolut Standard sits at just its small spread (0.10%). PayPal's 3.5% markup puts it many times higher on the very same transfer.
$5,000
At $5,000, Standard has gone past its monthly limit, so Revolut charges 0.5% on the amount above it. It is still far below PayPal, whose 3.5% now costs well over a hundred dollars.
$10,000
On a large send, PayPal's 3.5% is a few hundred dollars of cost. Revolut's excess fee is real but much smaller. The gap between them is now large enough to matter.
The pattern at a glance
The bars at $10,000 show the gulf: Revolut low, PayPal high, and the distance between them is almost all the markup PayPal folds into the rate.
The savings in context
Across the displayed estimates, choosing Interactive Brokers over MoneyGram leaves an extra €326.11 (3.93%) in the recipient's account.
Same 10,000 USD and the same market rate before fees. Provider availability, how you pay and the final price can change the result.
Who should pick what
Pick Revolut if you are sending money abroad and you want the lower cost. On a transfer into a bank account, Revolut beats PayPal by a wide margin, even accounting for its monthly limit and weekend markup.
Pick PayPal if the money is a payment for something online, or both you and the recipient already use PayPal and the convenience is worth the premium to you. For a quick purchase or a small personal payment, that ease has value.
Pick a transfer specialist if the lowest cost into a bank account is all that matters. A provider like Wise charges a small visible fee at the mid-market rate with no limit or weekend surcharge, and it is often cheaper than Revolut too. See Wise vs PayPal and Wise vs Revolut.
The bottom line
For sending money abroad, Revolut is the cheaper choice by a wide margin. PayPal's markup of about 3.5% is close to what a bank charges, and it hides in the exchange rate where you are least likely to notice. Revolut costs a fraction of that, even with its monthly limit and weekend rules.
PayPal still earns its place for paying online and for quick payments between people who both use it. But for a transfer into someone's account, a cheaper tool wins. And both beat the default: a bank would take 3% or more on the same send. Our markup versus fee guide shows how to see the cost that hides in the rate.
Frequently asked questions
Is Revolut cheaper than PayPal?
Yes, by a wide margin, for sending money abroad. Revolut charges only a small spread up to its monthly limit, while PayPal adds a markup of about 3.5% to the exchange rate. Even on a weekend or above the limit, Revolut usually costs less than PayPal.
Why is PayPal so expensive for international transfers?
Because PayPal makes most of its money on the exchange rate, adding a markup of several percent rather than showing it as a fee. That is convenient for quick online payments, but it makes PayPal one of the pricier ways to send money abroad.
Is PayPal ever the better choice?
For paying for something online, or for a quick payment between two people who both have PayPal accounts, the convenience can be worth the cost. For a transfer into a bank account where cost matters, a specialist like Revolut or Wise is the better tool.
Are these numbers exact?
The table uses the current mid-market reference and, where available, a Wise account-holder API estimate. Other providers use stored published fee and markup models, not live quotes, so the results are modelled estimates for typical routes. PayPal's fee and markup vary by route and payment method, and Revolut's limits vary by region. Always confirm the final figure on the provider's own site before you send.
Cost figures are worked out from each provider's published fee structure applied to the current mid-market reference rate, modelled estimates for typical major-currency routes. PayPal's pricing varies by route and payment method; Revolut's fair-use limits and plan prices vary by region. The figures shown are representative. Always confirm the final quote on the provider's own site before you transfer. We may earn a commission from affiliate links at no extra cost to you; this never affects rankings. Nothing here is financial advice.
Sources: Revolut exchange fees (opens in a new tab), PayPal fees (opens in a new tab), Wise pricing (opens in a new tab). Accessed August 2026.