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.
The fees and rates used in this comparison are accurate as of 22 July 2019.
Remitly’s fees are as low as $0 but go up as high as $99.99, depending on the currency, 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
Western Union’s fees for an online money transfer vary greatly currency to currency 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.
Let’s crunch the numbers: Sending $100 and $1,000 to the Philippines
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 cash pick-up with Western Union.
Sending $100 to the Philippines
Remitly
Western Union
Transfer fee
$6.99
$12
Exchange rate
1 CAD = 38.53 PHP
1 AUD = 38.3786 PHP
Transfer speed
Minutes
Minutes
Total pesos received
PHP₱3,583.68
PHP₱3,377.32
Receiver gets
PHP₱206.36 more (around $5 CAD)
PHP₱206.36 less (around $5 CAD)
Sending $1,000 to the Philippines
Remitly
Western Union
Transfer fee
$6.99
$30
Exchange rate
1 CAD = 38.53 PHP
1 CAD = 38.1838 PHP
Transfer speed
Minutes
Minutes
Total pesos received
PHP₱38,260.68
PHP₱36,542.40
Receiver gets
PHP₱1,718.28 more (around $44 CAD)
PHP₱1,718.28 less (around $44 CAD)
In both cases, Remitly ends up giving your receiver a few extra pesos in their pocket. The exchange rates are quite close, but it’s mostly Remitly’s lower fees that win out in the end.
Which offers better exchange rates?
Remitly
Remitly will normally add a margin to the exchange rates which varies for each currency. The margin normally sits between 0.4% and 2.5%.
For example, if you want to send money to Brazil:
Mid-market rate: 1 CAD = 2.8502 BRL
Remitly’s exchange rate: 1 CAD = 2.8200 BRL
Making it a margin of 1.06%.
Remitly often runs promotions which offer an exchange rate better than the mid-market rate for your first transfer on certain currencies.
Western Union
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 Brazil:
Mid-market rate: 1 CAD = 2.8502 BRL
Western Union’s exchange rate: 1 CAD = 2.7188 BRL
Making it a margin of 4.61%.
The mid-market rate is a baseline to measure what your money’s actually worth on the global market when compared to another currency. Banks and transfer services use the mid-market rate when they trade among themselves. It’s also known as the “interbank rate”.
Google the mid-market rate for the currency pair you’re transferring and compare the rates you’re quoted against this. You’ll be able to see what the mark-up is and how much the provider is making off that transfer.
Winner: Remitly
Remitly will often offer much better exchange rates than Western Union with a smaller margin added on.
Which is faster?
Remitly
Remitly offers an “express” option which 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 2-5 business days.
Western Union
Some Western Union transfers arrive the same day, while some take up to 5 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 5 business days for some transfers.
General features
Payment methods
Receiving options
Maximum and minimum transfers
Transfer speeds
Currencies
Remitly
Bank transfer, debit card, credit card
Bank account, cash pick-up
Minimum: $10
Maximum: $18,000
3 – 5 days
30+ currencies
Western Union
Bank transfer, cash transfer, debit card, credit card
Bank account, cash pick-up, mobile wallet
Minimum: $1
Maximum: $7,500
Within minutes
95+ currencies
Remitly
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 and transfer.
Western Union
After registration, open your profile and choose the “send money” option. After you’ve entered your receiver’s details, which includes 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 just as fast as Western Union. However, it doesn’t offer as many currencies as Western Union and this could be the deciding factor.
It’s a good idea to compare a range of international money transfer services before committing to any provider to make sure you’re getting the best deal possible.
Looking for more options?
Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
Isabel Sandercock-Brown is an international money transfers writer at Finder. She's written for a number of organisations, from the Salvos to Bumble. She has a Bachelor of Arts in Communications from the University of Technology, Sydney.
If you’re looking for a secure way to send money overseas, an international bank draft could be for you — but if speed is important, consider using a money transfer service instead.
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