Remitly vs Western Union: Which Is Better for International Transfers?

International money transfers are much more common today. You need them to:

• Send money to family overseas.
• Manage international transactions.
• Pay freelancers for their services.

In fact, you can now send money across borders not only through your bank but also through various specialized remittance services. These let you transfer money abroad quickly and with more flexibility.

In this article, we'll compare two such popular services - Remitly vs Western Union - to see which offers the most value for your money and, most importantly, which would be the best pick for your specific needs.

International transfers often come with FX markups, transaction costs, and sometimes even hidden charges. These charges differ for both Remitly and Western Union. Select the wrong service and you could end up paying more or receiving less than expected. Your choice also decides how quickly the money arrives and how easy the process is.

Plus, comparing Remitly vs Western Union will help you understand:

• Which one offers better fees for your needs?
• How do their transfer speeds differ?
• What kind of support does each one provide?

When comparing Remitly vs Western Union, you should consider some factors. For example, the Remitly vs Western Union exchange rate markup, transfer fees/service fees, and the time it'll take to complete the transfer.

1. Exchange rate

The exchange rate decides how much money you or the recipient gets after the conversion. Even a small difference in the rate can change the final amount, especially when a large amount is involved. So, make sure to carefully compare the exchange rate markups for both Remitly and Western Union before you send money.

2. Transfer fees

While both Remitly and Western Union charge fees, their amounts and structures can vary. For example, some transfers might have a fixed fee. Others may charge a percentage of the amount. In some cases, you may also have to pay extra for currency conversion, taxes, etc. It's important to be aware of these transfer fees/service fees right from the beginning, so you can get a better idea of the actual cost of transfer.

3. Transfer speed

The speed of transfer decides when you or the recipient will actually get the money. You see, international transfers usually take between 1 and 5 business days. So check the expected delivery time before choosing a remittance service. This way, you know exactly when the money will reach.

1. Remitly overview

Remitly is an online service that lets you send money to people in other countries. You can do this using your bank account, debit card, or credit card. It also lets the recipient receive money in different ways - bank account deposits, mobile wallets, and cash pickups.

One of Remitly's best features is its on-time delivery promise. If the money reaches late, it refunds the fees. The transfer speed depends on the option you select - express or economy. Express transfers usually arrive within minutes. But economy transfers take longer, around 5-7 business days. However, express transfers also cost more.

Key features of Remitly:

• Several ways to receive money, including bank deposits, cash pickups, mobile wallets, and even home delivery in some places.
• Real-time tracking through text alerts and app notifications.
• On-time delivery guarantee with a fee refund in case of delayed transfers.
• Exchange rates are locked once you start a transfer.
• Strong security measures.

Pros:

• Easy-to-use website and mobile app.
• Wide range of payout options.
• Exchange rate lock protects you from currency changes.
• Text alerts for both sender and receiver.
• Fee refund if you are not happy with the service.

Cons:

• Doesn't always offer the cheapest rates.
• Fixed fees can be high for small transfers.
• Transfer and payout options vary by country.
• Daily and monthly limits apply unless you complete extra verification.
• Express transfers cost more.

Pricing:

Depends on the transfer amount, destination, speed, and payment method. Typically, 0.35% to 1% of the transfer amount.

G2 rating: 3.9/5

Trustpilot rating: 4.6/5

2. Western Union overview

Western Union is a money transfer service that supports both domestic and international transfers. It supports different ways of receiving money. For example, cash pickup, bank deposits, or mobile wallet transfers. This makes it useful for many types of international payments.

Western Union's biggest strength is its huge global network. It has hundreds of thousands of agent locations and operates in over 200 countries and territories. You can use it for personal transfers, business payments, and urgent transfers. It also offers online, mobile, and in-person services, giving you multiple ways to transfer funds. If you opt for cash pickup, transfers happen immediately. But bank transfers can take 1-3 business days.

Key features of Western Union:

• Secure transfers backed by encrypted systems.
• A huge network with agent locations across 200+ countries and territories.
• Many ways to send money with online, app-based, and in-person options.
• Cash pickups are available in many regions.
• Support for bank transfers, mobile wallets, and other payout options.

Pros:

• One of the widest coverage networks in the world.
• Offers both online and offline transfers.
• Supports bank, wallet, and cash transfers.
• Good option for urgent transfers or situations where the receiver prefers cash pickup.

Cons:

• Often more expensive compared to other money transfer services.
• Bank transfer payouts can take several business days.
• Fees and exchange rates vary depending on the destination and transfer method.

Pricing:

Just like Remitly, the fees charged by Western Union also depend on different factors, like the destination, payment method, and transfer amount. For example, to send $100 from the U.S. to India online, you'll have to pay a transfer fee of $1.99.

G2 rating: Not available

Trustpilot rating: 4.2/5

Customers have highlighted both positive and negative experiences with Remitly and Western Union. They find the platforms easy to use and reliable. Many users like how simple it is to send money to family and friends abroad. They also find features like real-time tracking, clear fee details, and different ways to receive money helpful.

At the same time, some reviews also mention a few concerns. For example, some customers feel the fees are on the higher side and that exchange rates could be better. There have also been complaints about customer support and rewards programs.

Here are a few Trustpilot customer reviews for Remitly and Western Union:

1. Remitly customer reviews

• The best out of the money sending services I've used to less economically developed countries. Low fees and virtually instantaneous transfers. No hassle blocking my card and account and prompting me to contact customer care like WU did (I'll never do business with WU ever again for that hassle). Will continue using Remitly as long as it doesn't diminish in service.

• I have used the Money Transfer app a few times. Quite happy with the rates they offer. The transfer fee is also reasonable. Transfer speed is quite good. Though this time they take extra verification to provide the DOB of the recipient, which seems a bit indifferent, because it took a little longer to transfer funds. But overall, a very reliable service provider. Recommended to use their services, very quick and reliable.

• I really appreciate the convenience of Remitly, but I've noticed that other apps—like TapTap Send—offer higher exchange rates and allow transfers without any additional service fees. With Remitly, I still need to pay an extra 5 AED when sending money to my home country. I hope Remitly can consider lowering or removing these extra charges to stay more competitive. Overall, the service is good, but reducing fees would make the experience even better.

2. Western Union customer reviews

• The online process seemed fairly straightforward, but took some time to complete. My lack of understanding... some questions did not seem to apply to me, then later I would notice what effect they had. Retreating to repair and enter correct info often seemed to require complete re-entry of all info. Ok, I guess, since it is my money we are playing with, but what is probably a reasonably easy and straightforward process, I was able to make it a lot more complicated... but finally worked out, and the transfer was fast, efficient, and correct. So hard to really complain too much about my baptism into sending money by WU.

• WU seems to be the only way I can reliably & safely get money to my disabled, homeless adult son who has chosen to live 200 miles away. I am the payee of his disability benefits. He constantly has his possessions (wallet, ID, wheelchair, everything) stolen, so I have to physically go to the WU kiosk to add the test question. I appreciate WU for making it work!

• On numerous occasions, when the recipient goes to collect the money, they are informed that there are insufficient funds to pay out. They then have to revisit the Western Union office later that day. When I used the service, I had to return the following day, which is not great given that we pay for the money in minutes service.

The choice between Remitly and Western Union depends on what matters most to you. Both are great for sending money abroad, but they each serve different needs.

If you want simple pricing and clearer fees, Remitly is a better fit. Its exchange rates are often stronger, which means your recipient may get more money. The platform is easy to use, and you can track your transfer in real time. It is ideal if you want a smooth online experience across many supported countries and currencies.

Western Union, on the other hand, is more suitable if you want better speed and access. It has a much larger global network with agent locations in over 200 countries. This makes it ideal for instant cash pickups or urgent transfers.

If you want an even simpler way to collect payments from around the world, Xflow is a better alternative to Remitly and Western Union. It lets your customers pay through local bank transfers in their own country, which keeps the process fast and reliable. Plus, you can collect in more than 25 currencies and receive payments from most regions, except sanctioned or high-risk countries. Once the money reaches your Xflow account, you can withdraw it either to an INR account or an EEFC account.

And that's not all. Xflow also gives you a free USD Receiving Account when you sign up. You can simply share those details with your clients, and they can pay you using regular local transfers. And since there are no intermediary banks, payments arrive on time and without unexpected deductions.

The FX rates offered by Xflow are also linked to inter-bank levels. This ensures you always know the exact amount you'll receive.

When you're dealing with cross-border payments, it's important to choose the right platform to ensure not a lot gets eaten up by high transfer fees and exchange rate markups. While Remitly works well for quick personal transfers, Western Union gives you reach in almost every corner of the world.

But if you are looking for something simpler, faster, and more predictable, consider Xflow. It lets you collect payments in multiple currencies, avoid hidden fees, and withdraw money whenever you need.

Sign up today and start receiving international payments seamlessly.