Western Union vs. Remitly: An Honest Comparison (2024)

Here’s my honest Western Union vs Remitly comparison to help you choose the right payment method for you.

Both tools serve the money transfer industry, but they cater to different customer preferences. Western Union is known for its large agent network, making it ideal for recipients who prefer cash pick-ups. Remitly is great for those looking for online transfers with flexible speed options, including express and economy delivery.

Here’s the difference: The main difference is that Western Union offers a wide global reach with both digital and physical cash pick-up options, while Remitly focuses on affordable, fast digital remittances with strong customer service support.

An Overview of Western Union vs. Remitly

Let’s compare the key features side by side to see how they stack up against each other.

Personal note:

I switched to Remitly despite Western Union’s strong reputation for its extensive global network and fast cash pickups. Western Union’s convenience for immediate cash is impressive, but I found Remitly’s transparent fee structure and better exchange rates to be game-changers. Remitly’s user-friendly app and flexible transfer options perfectly fit my needs, making it a smarter choice for managing costs and speed in my transactions.

What is Western Union and How Does it Work?

Western Union is a global leader in cross-border money transfers, allowing users to send money via its digital platform or from thousands of agent locations. Recipients can receive funds through bank transfers, mobile wallets, or cash pick-up. This versatility, combined with its widespread global reach, is what makes it a trusted choice for those needing quick or cash transactions in various countries.

Pros of Western Union:

• Widest global reach with physical cash pick-up points.
• Multiple payment methods, including card, cash, and bank transfers.
• Instant transfer options for emergencies.

Cons of Western Union:

• High fees, especially for quick transfers.
• Exchange rates may not be as competitive as some digital-first options.
• App is functional but lacks some advanced features.

What is Remitly and How Does it Work?

Remitly is a digital-first money transfer service focusing on affordability and speed. Users can send money via the Remitly app or website to over 130 countries. It offers two transfer speeds: Express, which delivers money in minutes, and Economy, which takes 3-5 days but offers lower fees. With 24/7 customer support and transparent fees, it’s ideal for digital transfers.

Pros of Remitly:

• Offers both Express and Economy transfer speeds.
• Competitive rates and clear pricing structure.
• Highly rated mobile app with real-time tracking.

Cons of Remitly:

• Limited to digital payments, with no cash pick-up option.
• Available in fewer countries compared to Western Union.
• Economy transfers may take longer than expected.

Western Union vs Remitly: Side-by-Side Comparison

1. Transfer Speed

When it comes to transfer speed, both Western Union and Remitly excel in delivering funds quickly, but they do so in different ways. Western Union offers instant cash transfers to over 500,000 locations worldwide, which is perfect for those needing immediate cash access, especially in regions with limited digital banking. However, Remitly provides a two-tiered system: Express and Economy. Express transfers deliver funds within minutes, akin to Western Union, while Economy transfers take 3-5 days but offer a more affordable option. Remitly’s flexibility between speed and cost allows users to decide what works best based on urgency. Additionally, Remitly’s real-time tracking feature on their mobile app gives users peace of mind as they can see exactly where their money is at every step.

Verdict: Remitly wins for its balance of speed and cost options, but Western Union is ideal for cash pick-up urgency.

2. Global Reach

Global reach is where Western Union truly shines. With over 200 countries and 500,000 physical agent locations, it’s unmatched in terms of global access, especially in rural or underbanked regions. This makes it a top choice for people sending money to areas where digital banking is either non-existent or unreliable. In contrast, Remitly is available in over 130 countries, which, while impressive for a digital-first service, is still significantly less than Western Union’s footprint. However, Remitly’s focus on digital transfers means that they’re not constrained by the physical limitations of agent locations, allowing it to deliver efficiently in the countries it operates.

Verdict: Western Union wins for extensive global coverage, especially in areas with limited digital infrastructure.

3. Fee Structure

Western Union’s fee structure can be quite variable depending on factors like transfer destination, payment method, and speed. Typically, quicker cash transfers come with higher fees, and users often report difficulty predicting exact costs. Remitly, on the other hand, offers a more transparent pricing model, with clear distinctions between its Express and Economy transfers. Economy transfers are significantly cheaper, but at the cost of speed. Remitly’s overall affordability, combined with its upfront pricing, makes it a preferred choice for users who prioritize cost savings.

Verdict: Remitly takes the lead here with more predictable, transparent, and often lower fees.

4. Mobile App & User Experience

Both platforms offer mobile apps, but the user experience differs considerably. Western Union’s app allows users to send money, track transfers, and locate agent locations, but its design is often seen as functional rather than user-friendly. Remitly, in contrast, has an app that is highly praised for its intuitive interface, real-time tracking, and ease of use. Remitly’s app also allows for flexible sending options and detailed status updates, making it particularly user-friendly for frequent digital users. In addition, Remitly’s app includes features like live chat support and delivery time estimates that enhance the overall user experience.

Verdict: Remitly wins for app usability and modern, user-centric design.

5. Exchange Rates

Exchange rates are crucial when choosing a money transfer service, as even small differences can add up, especially for large or frequent transfers. Western Union is often criticized for offering less favorable exchange rates compared to its competitors. Its large physical network and speed of delivery may justify the higher markups, but for those prioritizing the most value for their money, this can be a drawback. Remitly, on the other hand, offers more competitive exchange rates, especially for its Economy transfers. Users have reported getting more favorable rates compared to Western Union, making Remitly the better option for maximizing value on international transfers.

Verdict: Remitly wins with better exchange rates for users looking to get the most value.

6. Customer Service

Western Union provides multichannel support, including phone, online, and in-person help at its agent locations. This versatility is a significant advantage for users who prefer direct, face-to-face assistance. Remitly, while it lacks physical locations, makes up for it with 24/7 customer service that’s accessible through phone, email, and live chat. Remitly is particularly known for its quick response times and user satisfaction, with users frequently citing its responsiveness and effectiveness in resolving issues. For those comfortable with digital support, Remitly’s customer service is more than sufficient and often superior in terms of accessibility.

Verdict: Remitly wins for faster, more responsive customer service, though Western Union offers the added benefit of in-person help.

7. Payment Methods

Western Union has a significant advantage when it comes to payment methods. It offers a wide array of options, including credit and debit cards, bank transfers, and cash payments. This flexibility makes it a suitable choice for users who want varied options for sending and receiving money. Remitly, on the other hand, focuses primarily on digital payments through bank accounts and cards, limiting its appeal to users who need physical cash transactions. However, Remitly’s digital-first approach aligns better with users who are comfortable with online banking and prefer digital convenience over physical payments.

Verdict: Western Union wins for its diverse payment methods, but Remitly is great for digital-native users.

Use Cases for Western Union

1. Urgent Cash Transfers: Western Union is ideal for someone who needs to send cash to a family member in a country where digital banking isn’t as prominent. Its agent locations make it easy for recipients to pick up physical money quickly.
2. Travelers Sending Funds Back Home: Western Union is perfect for travelers needing to send funds internationally in real-time. With cash pick-up options, recipients don’t need a bank account to access the money.

Use Cases for Remitly

1. Budget-Conscious Senders: A migrant worker regularly sending money home to family uses Remitly’s Economy service to save on transfer fees while still benefiting from decent delivery times.
2. Freelancers Receiving Payments Abroad: A freelancer working with international clients can use Remitly to quickly and affordably receive payments, especially with its better exchange rates and faster options.

Western Union Pricing

Western Union’s fees vary depending on the destination, transfer speed, and payment method. While they offer cash, card, and bank transfer options, quicker transfers often come with higher fees.

Remitly Pricing

Remitly’s pricing is transparent. Express transfers are more expensive, but deliver quickly, while Economy transfers take a few days and are more affordable. Exchange rates are competitive, particularly for the Economy option.

What to Consider When Choosing Between Western Union and Remitly

Transfer Speed

• When choosing between Western Union and Remitly, consider how quickly you need the funds transferred. Western Union can offer instant cash pickup in many locations worldwide, ideal for urgent transfers. Remitly provides flexibility with its Express option for near-instant transfers or Economy for more affordable, slower options. If speed is your priority and you’re okay with potentially higher fees, Western Union might be preferable. If cost and the ability to choose between speed and affordability are more important, Remitly’s options are worth considering.

Global Reach

• Western Union boasts an extensive network, with over 500,000 agent locations across 200 countries. This extensive reach makes it a strong choice for sending money to locations where digital banking is not prevalent. Remitly operates in over 130 countries and focuses on digital transfers, which is great for recipients who have access to banking services but might not be ideal for those in remote areas. The decision may hinge on whether you need extensive physical presence or if digital infrastructure suffices.

Fee Structure

• Western Union’s fees are variable and depend on the transfer speed, destination, and payment method. High fees are often associated with faster transfers. Remitly offers a clearer fee structure with its two-tier system: Express transfers are costlier but faster, while Economy transfers are cheaper but slower. If managing transfer costs is crucial, Remitly’s transparent pricing might be more advantageous. Conversely, if immediate cash availability is essential, Western Union’s potentially higher fees for speed could be justified.

Exchange Rates

• Exchange rates can significantly impact the value of the transferred amount. Western Union is known for its less favorable exchange rates, which might reduce the total amount the recipient receives. Remitly, on the other hand, typically offers more competitive exchange rates, particularly with its Economy service. When choosing between the two, consider how much of an impact exchange rates have on the overall cost of your transfer. For maximizing value, Remitly’s better rates could provide more favorable outcomes.

Customer Service

• Effective customer service can be crucial when dealing with financial transactions. Western Union provides support through multiple channels, including phone and in-person at agent locations. This can be advantageous for users who prefer face-to-face interactions. Remitly offers 24/7 customer service through phone, email, and live chat, praised for its quick response times and effectiveness. If digital support and immediate assistance are important, Remitly’s dedicated online service might be more suitable, while Western Union’s in-person options can be beneficial for those needing direct assistance.

FAQs

How quickly can I send money with Western Union and Remitly?

• Western Union offers immediate transfers for cash pickups, though bank transfers can take longer. They provide a variety of speeds depending on the service chosen.
• Remitly provides two main options: Express transfers are typically completed within minutes, while Economy transfers take 3-5 days. The choice between speed and cost makes Remitly flexible for different needs.

What are the main fees associated with Western Union and Remitly?

• Western Union fees vary widely based on transfer speed, destination, and payment method. Fees can be high for fast cash transfers.
• Remitly has a more transparent fee structure. Express transfers have higher fees, but Economy transfers are more cost-effective, often with lower overall costs compared to Western Union.

Which service has better exchange rates, Western Union or Remitly?

• Western Union tends to offer less favorable exchange rates, which can impact the amount received by the recipient.
• Remitly generally provides better exchange rates, especially with its Economy option, allowing users to get more value for their money.

Can I use Western Union and Remitly for cash pickups?

• Western Union excels here with a global network of over 500,000 locations for cash pickups.
• Remitly focuses primarily on bank transfers and does not support cash pickups, which can limit its use in areas without banking infrastructure.

How do Western Union and Remitly compare in terms of customer service?

• Western Union offers multichannel support, including phone and in-person assistance at agent locations.
• Remitly provides 24/7 customer service via phone, email, and live chat, and is praised for its responsive and effective support.

Is Western Union Better Than Remitly: Takeaway

Western Union stands out with its extensive global reach and numerous cash pickup locations, which is ideal for quick access to funds.

However, its fees can be high and its exchange rates less favorable. Remitly addresses these issues with a more transparent fee structure and competitive exchange rates, offering a more cost-effective solution.

Additionally, Remitly’s app provides a user-friendly experience and flexible transfer options, filling the gap left by Western Union’s higher costs and less streamlined service.