Last Updated on December, 2024
Remitly and Western Union are both among the popular international money transfer services. Remitly enables you to transfer in more than 100 currencies, allowing you in-app and online money transfer facilities.
While Western Union has a massive global presence. However, Western Union takes the lead by offering multiple physical or agent locations all across the globe and a long history.
Did you know? Western Union was one of the first listed companies on Dow Jones back in 1884 and it started as a telegraph company in 1851.
Compared to that, Remitly is pretty new. Still, which service should you consider for your next online transfer?
In this guide, we’ll provide you with a detailed comparison of both Remitly and Western Union and see which one comes out on top. So carry on reading till the end.
Quick Summary
Remitly supports transfers in over 170 countries and 100+ currencies, offering various payout methods including mobile money deposits, while Western Union has a broader global presence, supporting over 200 countries with extensive physical agent locations and in-person services.
Both Remitly and Western Union add margins to exchange rates and have varying fees depending on the payment method and transfer destination. Generally, Remitly offers better exchange rates for larger transfers, making it a more cost-effective option in some scenarios.
Remitly provides express transfers that are instant and economy transfers that take several days. Western Union’s transfer speeds range from minutes to days, depending on the payment type and destination. Western Union also offers business services, which Remitly does not. Both services are fully licensed and regulated for safety.
Contents
- Remitly and Western Union – How Do They Work?
- Remitly vs Western Union – Background
- Exchange Rate, Fees, and Charges – Remitly vs Western Union
- Transfer Speeds, Safety, and Customer Service – Remitly vs Western Union
- Payment Methods, International Cash or Bank Transfer Limits, and Cash Pickup/Delivery Locations – Remitly vs Western Union
- Business Account, Ease of Use, and Supported Currencies – Remitly vs Western Union
- Remitly vs Western Union – Pros & Cons
- Remitly vs Western Union – Final Thoughts
- Frequently Asked Questions
Remitly and Western Union – How Do They Work?
| Features | Remitly | Western Union |
| Payment destinations | More than 170 countries and in more than 100 currencies | More than 200 countries |
| Bank deposit | Available | Available |
| Cash pickup | Available | Available |
| Cash home delivery | Available | Not available |
| Mobile wallet transfers | Available | Not Available |
| Safety | Fully licensed and regulated by FCA | Fully licensed and regulated by FCA |
| Services for businesses | Not Available | Yes (acquired by Convera) |
| Rate | The exchange rate comes with a markup | The exchange rate includes a markup |
| Fees | Different fees based on currency, country, and service | Different fees based on country, currency, and service |
| Transfer Speed | Economy service takes several days while Express transfers are instant | Ranges from a couple of minutes to a couple of working days based on payment type, and destination |
| Service | Phone support, via the app, and online | Phone support, via the app, online and in-person |
Both Remitly and Western Union offer international payments that you can arrange in-app or online. But Western Union also allows cash pickup, home deliveries, and in-person assistance.
Using either service, if you want to send money, you must create a verified account (depending upon the payment type and value of your transaction).
To send money using a money transfer service like Western Union or Remitly, here are the steps that you need to follow:
Remitly vs Western Union – Background
Remitly
This money services business was launched back in 2011 to make cash transfers easy and simple.
All payments are arranged in-app or online and you can also choose from different payout methods based on your particular needs.
You can send money overseas in over 170 countries and more than 100 currencies.
For a comprehensive review of Remitly, click here to read more.
Western Union
Western Union has a long history dating back to 1851 when it started as a telegraph company.
They have a huge network enabling you to send money abroad (all across the globe) and they also offer in-person payments.
Did you know? Western Union processes around 24 digital transactions per second.
For a comprehensive review of Western Union, click here to read more.
Exchange Rate, Fees, and Charges – Remitly vs Western Union
Western Union and Remitly both have different fees depending on the payment method and transfer destination.
Moreover, there is a markup involved in the exchange rate for currency conversion. The exact charges will vary based on the sending and receiving country.
| Fee type | Remitly | Western Union |
| Opening an account | Free of cost | Free of cost |
| Monthly charges | None | None |
| Sending money (domestic payments) | Service not available | Different fees |
| International money transfers (and bank account transfers | Different fees depend upon the payout method and destination | Western Union transfers have different fees depending on the payment type and transfer destination |
| Currency conversion | Exchange rate makeup applicable | Exchange rate markup applicable |
Which Service is Cheaper?
For this, you will need to weigh both the exchange rate markup and transfer fee. The good thing is that getting quotes from both Remitly and Western Union is simple.
Here’s an example to consider for comparing Remitley and Western Union (based on the exchange rates taken on July 13th, 2024).
| Currency and amount | With Remitly, Recipient Gets | With WU, Recipient Gets | The Cheaper Option? |
| USD 1,000 → EUR | EUR 908.96 | EUR 898.02 | Remitly |
| USD 5,000 → EUR | EUR 4,545.03 | EUR 3,819.50 | Remitly |
Exchange Rates
Both Remitly and Western Union add margins to the exchange rates for currency conversion. Therefore, for currency switchover when depositing or collecting, you will have to pay a percentage under mid market rate. But transfer fee is variable and they are pretty tough to track.
Transfer Speeds, Safety, and Customer Service – Remitly vs Western Union
Remitly
How long an international money transfer takes also depends upon different factors:
Apart from that, Remitly is a fully regulated and licensed service so it is safe and secure. And this is one of the reasons why Remitly is trusted by many, all across the globe. They also offer in-app and online services to their customers.
Western Union
Payments using the Western Union financial service can take anywhere from a couple of minutes to a couple of working days. It also depends upon the payment and receiving method. Moreover, Western Union is a safe service to use because it is licensed and fully regulated.
In addition, Western Union offers online (using the Western Union website), and in-app services along with thousands of physical agent locations all across the globe for in-person assistance and more efficient customer service.
Payment Methods, International Cash or Bank Transfer Limits, and Cash Pickup/Delivery Locations – Remitly vs Western Union
Remitly
With Remitly you can arrange payment online. Moreover, you can also opt for a debit card, credit card, and bank account.
For delivery methods, you can deposit to a bank account, go for cash home delivery, cash collection, and mobile money deposit. Plus, they have over 435,000 agents in 120 countries for cash pickup.
While the amount of money you can send using Remitly depends upon your account type:
Western Union
However, Western Union not only offers in-person payments but also cash in-store, a debit card, a credit card, and a bank account.
Western Union has cash collection and bank account deposit for delivery methods. And they have more than 500,000 agents in over 200 countries.
Whereas the Western Union money transfer limits are:
Business Account, Ease of Use, and Supported Currencies – Remitly vs Western Union
Remitly
Furthermore, Remitly supports over 100 currencies in over 170 countries. But they don’t offer any business accounts or business services. However, creating an account with Remitly is easy as you can do it online or using their app.
You can transfer funds via bank transfer or card using Remitly. Apart from that, Remitly offers different payout methods, including cash collection, bank account deposits, mobile money deposits, home delivery, and cash collection.
Western Union
Western Union supports transfers in more than 200 countries and they offer business services which are now taken over by Convera. You can open your account using their app or online or you can go to one of their agents.
With Western Union, you can make a transfer using a card or a bank transfer or you can visit an agent in person. However, they enable you to make a cash collection, mobile money deposit, or a bank transfer.
Remitly vs Western Union – Pros & Cons
What Makes Remitly Better?
What Doesn’t Work About Remitly?
What Makes Western Union Better?
What Doesn’t Work About Western Union?
Remitly vs Western Union – Final Thoughts
So, after comparing these services, Remitly takes a slight lead and offers better exchange rates than Western Union. But the difference is small.
Western Union has various collection points that are easily accessible throughout the world. They also offer different payout methods and Western Union’s fees will depend upon the payment method, the transfer destination, and the service type.
With Remitly you can make an international transfer using your smartphone. And of course, the receiver can collect it either in the form of mobile money, in cash, or at the bank.
But if you do compare the exchange rates of each transfer service, you will see that as the transfer amount increases the difference also increases and Remitly becomes more favorable.
Therefore, you can either go for Remitly or Western Union for an international transfer based on your preference. They both offer competitive exchange rates, low fees, and a very similar currency exchange rate margin. They both are reliable and fast as well.
Frequently Asked Questions
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