MoneyGram vs. WorldRemit

Though you have many options for international money transfers, MoneyGram is among the best known. However, newer online startups like WorldRemit could offer a competitive edge of lower fees and stronger rates.

Compare MoneyGram to WorldRemit

Quick verdict

Lower fees:
WorldRemit

Exchange rates:
WorldRemit

Fast transfers:
Tie

MoneyGram and WorldRemit: How they work

MoneyGram

You can transfer money through MoneyGram either in person, online, using an app or over the phone. MoneyGram will convert and deliver your money to a bank account or for cash pickup at locations worldwide.

Read review: MoneyGram

WorldRemit

WorldRemit conducts its business online. To open a free WorldRemit account, you’ll need to provide mobile number for both you and your recipient, as well as a copy of your government-issued ID. Once approved, WorldRemit converts your currency and sends it to your recipient, who can pick it up through a bank transfer, cash pickup or Mobile Money.

Read review: WorldRemit

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Which offers lower fees?

MoneyGram

A number of factors that influence fees when you use MoneyGram: the country receiving the transfer, how you’re sending it and how your recipient will receive your funds. For example, if you send $500 to Mexico using a credit or debit card for cash pickup, you’d pay a $7 transfer fee, while sending $500 to Belgium using a credit or debit card for cash pickup would cost $31.

WorldRemit

Transfer fees for WorldRemit also vary depending on where you’re sending money, but the fee for most countries is $3.99. The method you can use to send money will depend on the country to which you’re sending it.

Winner: WorldRemit

Although for both companies, what you’ll pay depends on the options you choose and your recipient’s country, WorldRemit’s fee structure is simple and transparent. For most transfers, WorldRemit’s flat $3.99 rate will be cheaper than your fee with MoneyGram.

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Which offers better exchange rates?

To understand who offers better exchange rates, you’ll need to first look at the mid-market rate. This is the true exchange rate that averages the buying and selling rate of a global currency — and the rate banks and transfer services use when they trade among themselves.

We’ll look at the rates that MoneyGram and WorldRemit offer compared to the mid-market rate.

MoneyGram

Depending on where you’re sending money, the exchange rate with MoneyGram could be 5% or more above the mid-market rate. This translates to big profits for MoneyGram — at your expense.

Let’s look at the example of a transfer to Australian dollars (AUD):

• If the mid-market rate is 1 USD = 1.30 AUD
• MoneyGram’s exchange rate could be 1 USD = 1.24 AUD

WorldRemit

WorldRemit takes a smaller margin than MoneyGram — sometimes less than 1% above the mid-market rate.

Using the same example of a transfer to AUD:

• If the mid-market rate is 1 USD = 1.30 AUD
• WorldRemit’s exchange rate might be 1 USD = 1.29 AUD

Winner: WorldRemit

Competitive exchange rates make WorldRemit the clear winner here, putting money more money into your recipient’s pocket.

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Which is faster?

MoneyGram

Delivery speeds with MoneyGram vary by transfer option. In-person and phone transfers can be delivered in minutes, although at higher costs. MoneyGram’s cheaper options take two to four business days.

WorldRemit

Sending money by bank transfer typically takes one to three business days, although a few banks offer instant transfers. Sending money via Mobile Money or airtime top-up is available immediately.

Winner: Tie

If you need to get your money there in a hurry, you might not mind the higher fees for MoneyGram to get it there instantly. However, WorldRemit’s Mobile Money and airtime top-up options won’t cost you an arm and a leg — and even its slower option could save you a day.

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Which offers more options?

	Payment Methods	Minimum and maximum transfers	Delivery methods	Transfer speeds	Countries and currencies
MoneyGram	Bank account, credit or debit card, cash	Varies by country	Bank transfer, cash pickup, other options by location	2–4 business days	190+ countries and 45+ currencies
WorldRemit	Bank account, credit or debit card	$1 minimum; maximum varies by country	Bank transfer, cash pickup, Mobile Money, airtime top-up	Varies from minutes to 3 days	100+ countries

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Case study:$2,000 to Greece

Neal and his wife, Lydia, are moving to Greece. Neal wants to send $2,000 to Lydia, who’s already relaxing in Kelafonia, for a down payment on an apartment. Here’s what an online bank-to-bank transfer would like for this transaction with MoneyGram and WorldRemit.

	MoneyGram	WorldRemit
Transfer fee	$25	$4.99
Exchange rate	1 USD = 0.90 EUR	1 USD = 0.93 EUR
Transfer speed	2–4 business days	Within an hour
Total received	1,777 EUR	1,855 EUR

With WorldRemit, Neal saves $20 on transfer fees, and Lydia gets more than 50 extra euros in her pocket — in much less time.

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Bottom line

MoneyGram offers more flexibility in terms of transfer methods, but WorldRemit comes out on top when it comes to exchange rates, transfer fees and low-cost delivery speeds.

Ultimately, you’ll want to compare your options to find the service that best fits your specific needs.

Looking for more options?

Frequently asked questions

• What is airtime top-up?

  WorldRemit offers airtime top-up as an option when sending money to a variety of different countries. When you send via airtime top-up, you’re essentially paying your recipient money toward a prepaid phone service or, in some cases, extra data allowances.

• Is the mid-market rate between two currencies always the same?

  No. The mid-market rate fluctuates constantly as the currencies are traded around the world. Google the mid-market rate for your currency, and use it as a baseline to compare against the rates offered by your bank or transfer service.

• How safe is a money transfer?

  When processed through a reputable bank or company, your funds are safely tracked until in the hands of your recipient. And if you’re sending money internationally, federal protections are in place that require banks, credit unions and money transfer companies to, for example, disclose all fees up front and give you 30 minutes to cancel a transfer, assuming it hasn’t yet been picked up or deposited.