Western Union
Western Union is one of the most well-known international transfer services in the world. But let’s see how it compares to Remitly, an up-and-coming provider, to see which transfer service can take your dollar further.
Remitly’s fees depend on the currency you’re sending, how much you’re transferring and the speed of the transfer. Higher fees are applied on express transfers.
If you’re sending through the slower option, the fees are generally between $2 and $4 and can even be free in some cases.
Western Union’s fees for an online money transfer vary greatly currency to currency — from $3.50 up to $100 or more — and can either be a flat fee or calculated based on a percentage, so it’s vital to check the currency you’re exchanging using the Western Union price estimator.
Winner: Remitly
Although there is a lot of variety with both, Remitly often has lower flat fees for slower transfers than Western Union.
To see how these two services stack up, let’s compare how Western Union and Remitly fare for two different transfer amounts to the Philippines. Keep in mind, rates vary for other countries.
In this example, we’ll be using the quickest transfer possible. This means Remitly’s express option and paying with debit card for cash pickup with Western Union.
| Remitly | Western Union | |
|---|---|---|
| Transfer fee | $3.99 | $4.99 |
| Exchange rate | 1 USD = 50.5800 PHP | 1 USD = 49.5864 PHP |
| Transfer speed | Minutes | Minutes |
| Total pesos received | PHP₱4,856.19 | PHP₱4,711.20 |
| Receiver gets | PHP₱144.99 more | PHP₱144.99 less |
| Remitly | Western Union | |
|---|---|---|
| Transfer fee | $3.99 | $10 |
| Exchange rate | 1 USD = 50.5800 PHP | 1 USD = 49.5864 PHP |
| Transfer speed | Minutes | Minutes |
| Total pesos received | PHP₱50,378.19 | PHP₱49,090.54 |
| Receiver gets | PHP₱1,287.65 more | PHP₱1,287.65 less |
In both cases, Remitly ends up giving your receiver a few extra pesos in their pocket. Remitly offers both lower fees and a better exchange rate.
Remitly will normally add a margin to the exchange rates which varies for each currency. The margin varies from currency to currency.
For example, if you want to send money to South Africa:
In this case, Remitly’s mark-up is about 0.9%.
Remitly often runs promotions that offer an exchange rate better than the midmarket rate for your first transfer on specific currencies.
Western Union also adds a margin, but it tends to be quite a bit higher, ranging from 1% to 6%.
For example, if you want to send money to South Africa:
This is a margin of about 1.6%.
Winner: Remitly
Remitly will often offer much better exchange rates than Western Union.
Remitly offers an express option that will get your money to the destination near instantly, but it does come with a higher fee. If you opt for the cheaper economy option, you’re looking at a transfer time of two to five business days.
Some Western Union transfers arrive the same day, while some take up to five business days. It also depends on the transfer and receiving method but in general, bank account to bank account transfers will take the longest and be the cheapest.
Winner: Tie
Both Remitly and Western Union can transfer your money quickly, but they also take up to five business days for some transfers.
| Payment methods | Receiving options | Maximum and minimum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| Remitly | Bank transfer, debit card, credit card | Bank account, cash pickup, mobile wallet | Minimum: $10 Maximum: $20,000 | Within minutes | 30+ currencies |
| Western Union | Bank transfer, cash transfer, debit card, credit card | Bank account, cash pickup, mobile wallet | Minimum: $1 Maximum: $2,500 | Within minutes | 95+ currencies |
Once you have an account with Remitly, you log in on either the website or through the app, then enter the amount, currency, recipient’s information and your payment information. After that, Remitly will convert your money and transfer it to your recipient.
After registration, open your profile and choose the Send money option. After you’ve entered your receiver’s details, which includes their bank name and code as well as their bank account number if a bank transfer, you choose your payment method.
Once you’ve paid, Western Union will transfer the funds. You also have the option to send money in-store at an agent location.
Remitly offers both lower fees and better exchange rates, with the option to send money as fast as Western Union. However, it doesn’t offer as many currencies as Western Union and this could be the deciding factor.
Compare a range of international money transfer services before committing to any provider to ensure you’re getting the best deal possible.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
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