Yes, Remitly is often cheaper than Western Union, especially for bank-to-bank transfers or smaller amounts, due to lower exchange rate markups and sometimes no transfer fees for economy options; however, Western Union offers wider cash pickup locations, so the best choice depends on your specific transfer details, requiring you to compare both services' real-time quotes before sending.
Remitly may sometimes offer more competitive exchange rates, but Western Union has the largest global network with cash pickup locations almost everywhere, which is useful if your recipient doesn't have a bank account or lives in a country Remitly doesn't reach.
Remitly charges a smaller markup on exchange rates, typically around 1-2%. This makes it a cost-effective choice for transfers. Western Union typically adds a higher markup, usually ranging from 2-4%. Over time, this can result in higher costs, particularly for larger transfers.
Bank Transfer
Bank transfers are usually the cheapest option when it comes to funding your international money transfer with Wise. Bank transfers can be slower than debit or credit cards, but they usually give you the best value for your money. Read more how to use bank transfers as a payment option.
Remitly is a U.S.-based company, headquartered in Seattle, Washington, United States, and is a publicly traded fintech company on the Nasdaq stock exchange, co-founded by Matt Oppenheimer, Josh Hug, and Shivaas Gulati. It's an American company that uses technology to facilitate digital international money transfers for immigrants, operating globally but rooted in the U.S.
Although Remitly advertises that you can send money globally without hidden fees, you'll pay an inflated exchange rate charge for international transfers. You may be eligible for a promotional rate for your first transfer, but the next ones will be at Remitly's regular rate.
The Top 3 Cheapest Domestic Wire Transfers
One of the best Remitly alternatives, Wise is a full-featured international money platform. In addition to money transfer services, you also get a multi-currency account that holds money in over 40 currencies.
Remitly is a publicly traded company (NASDAQ: RELY), owned by a combination of institutional investors (like BlackRock, Vanguard), individual shareholders, and its founders, including CEO Matt Oppenheimer, Josh Hug, and Shivaas Gulati, who started it in 2011. While founders hold significant stakes, large institutions are major shareholders, meaning no single entity has total ownership.
Remitly is a safe and legitimate way to send money to family and friends in another country. The company has strong security measures, proper licenses in all countries where they operate, and systems to detect suspicious activity. However, using Remitly will cost you in fees and exchange rate markups.
Banks and new digital apps like Zelle, PayPal, and Venmo offer free or low-cost domestic money transfers. For international transfers, banks charge various fees, but fintech companies like Wise offer competitive rates. Physical cash is a free option for transferring money between bank accounts, but avoid mailing it.
Is Remitly or Western Union cheaper? In many cases, Remitly tends to offer lower fees and competitive exchange rates compared to Western Union. Just keep in mind that the total transaction cost varies depending on the amount sent, the destination and the transfer method.
The cheapest way to transfer money internationally usually involves online money transfer services like Wise, OFX, or Revolut, which offer better exchange rates and lower fees than traditional banks by using transparent mid-market rates and bypassing SWIFT network markups. Funding transfers with a direct bank transfer (ACH) is often cheaper than using debit/credit cards, though slower, while providers like XE Money Transfer offer competitive rates with low/no fees, especially for larger amounts.
Western Union is expensive due to a combination of service fees (transfer fees) and hidden costs like exchange rate markups, with costs varying based on transfer speed, funding method (cash vs. bank), and recipient's location, making it costly for fast, cash-based, or international transfers compared to digital alternatives like Wise or traditional bank wires (which have different fee structures). They profit significantly from the difference between the mid-market exchange rate and the rate they offer you, plus a processing fee for their vast global network.
The best way to avoid Western Union fees is to send using an Online or a Bank Account method directly to the bank account of the receiver. Although this will help save more fees in the process, the transfer time can be anywhere from 3 to 7 business days.
According to their website, Remitly holds licenses to operate in all Canadian provinces including Quebec. ⁵ This means they comply with Canadian laws and regulations for financial institutions. They also use encryption to protect your personal information and transactions.
If your Remitly profile is suspended, it's likely because we noticed some activity from you or your recipient that isn't allowed under the terms of our User Agreement.
About Remitly
Guaranty Trust Bank Ltd has partnered with Remitly to offer a value-added payment service (Business to Business - B2B, Business to Person - B2P and Person to Person - P2P) to beneficiaries in Nigeria.