Remitly vs MoneyGram

Tommy Buckley

01.03.23 (updated more than 1 year ago)

7 minute read

Need to pay a friend in another country, or pay for something overseas? You’ll need to find the cheapest, most convenient and fastest way of getting your money there.

An online money transfer service could be the ideal solution. But there are so many out there, it’s difficult to know which to choose.

In this guide, we’ll be comparing two of the most popular - Remitly and MoneyGram. We’ll look at everything from fees and exchange rates to transfer times, so that you can choose the right service for your needs.

Remember though that these two aren’t the only money transfer services out there. You can send money worldwide with Wise, for low fees and the mid-market exchange rate.

Learn more about Wise

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

But more on this later. First, let’s run through some quick background information on the two services we’ll be comparing here - Remitly and MoneyGram.

What is Remitly and MoneyGram?

Remitly is a US-based online money transfer service, which first launched back in 2011. Today, you can use it for transfers in over 170 countries worldwide¹.

MoneyGram is also based in the US, with a history dating back to 1998. It offers transfers to 200+ countries and territories, and has a network of 380,000+ locations across the world. MoneyGram has over 150 million customers to date²

Fees - Is Remitly cheaper than MoneyGram?

Cost is likely to be at the forefront of your mind when comparing money transfer providers, and quite rightly so. But which is cheaper - Remitly or MoneyGram? Here’s what you need to know.

Both Remitly and MoneyGram charge an upfront transfer fee, which varies depending on a few key factors. These include where you’re sending to and from, the amount, currency and the speed of transfer.

While you’re comparing fees, it’s useful to look at other providers - to see how Remitly and MoneyGram stack up.

Wise makes all its fees available upfront, so you can see how much you’d pay for a transfer even before signing up for an account. There are no monthly or annual subscription fees, and all transfer fees are as low as possible.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Exchange rates - Remitly vs. MoneyGram

It’s not just the fee you should look at when choosing an international transfer service. It’s also a good idea to check out the exchange rate. You may not realise it, but this can make a big difference to the overall cost of the transaction.

Money transfer providers often add a mark-up to what is known as the mid-market or interbank exchange rate. This is the one you’ll find on Google or currency sites like XE.com. It’s a useful benchmark to compare other exchange rates to, so you can see if the provider has added a margin on top.

So, what exchange rates do Remitly and MoneyGram use?

Remitly⁸ adds a mark-up to the mid-market exchange rate for their transfers. Along with transfer fees, it’s how they make their money. The percentage of the mark-up is likely to vary depending on currency and other factors.

Meanwhile, MoneyGram does generally offer the mid-market rate, but can add a margin for some transfers.⁷

Send money with Wise

So as you can see, the exchange rate really does make a difference. Even though Wise has the highest transfer fee in this example, it still comes out comfortably on top due to that great exchange rate. This ensures more of your money reaches your recipient, without being lost to currency conversion along the way.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Cash Withdrawal Options

If the person you’re sending money to doesn’t have a bank account, don’t worry. Some services offer cash pickup, where the recipient can collect the cash in person at a physical location. They’ll usually need to take some ID and a reference number for the transfer along with them.

But is cash withdrawal an option for both Remitly and MoneyGram?

Remitly does offer cash pickup in many countries with a number of banking partners or agents which are displayed on the transfer page of the country you want to transfer to. You can use Remitly’s pickup locator for each of the following countries¹¹:

India
Colombia
Mexico
Philippines
Guatemala
Dominican Republic.

You can find more information on Remitly cash pickup locations here.

In comparison, MoneyGram has a network of 380,000+ cash pickup locations² across the world. You can search for your nearest here.

Availability

Another key factor when choosing a money transfer service is availability. You need to make sure your chosen countries and currencies are supported, otherwise you won’t be able to use the service at all.

With this in mind, here’s some useful information on availability for both Remitly and MoneyGram.

Which countries are Remitly and MoneyGram available in?

Remitly offers transfers to over 170 countries worldwide¹. However, you can only open an account and transfer from 28 countries, including the UK, Australia, USA, Singapore, Ireland, Canada and a number of European countries¹¹.

MoneyGram, meanwhile, has a network spanning 200+ countries and territories. However, you can only make online money transfers to²:

Australia
Most European countries - including Austria, Belgium, France, Germany, Greece, Italy, Poland, Spain and the Netherlands
US
UK
Singapore
Hong Kong
New Zealand
Canada.

This list of supported countries is shorter for in-app money transfers with MoneyGram. But for in-person money transfers, it’s much bigger - including large parts of the rest of the world². You can see the full list here.

Wise is available in 170 countries supporting over 50 currencies

Cash pickup locations

As we’ve mentioned Remitly does offer cash pickup in many countries with a number of banking partners or agents which are displayed on the transfer page of the country you want to transfer to. You can use Remitly’s pickup locator for specific countries.

You can find more information on Remitly cash pickup locations here.

Moneygram has a huge number of cash pickup locations worldwide. You can find your nearest here.

In the UK, cash collection locations for MoneyGram usually include Post Offices.

Transfer times

If you need your transfer to arrive quickly, you’ll want to know about average transfer times with Remitly and MoneyGram.

Remitly offers two different options when sending an international transfer - Economy and Express.

As you’d expect, Economy is usually the cheapest option. It usually takes between 3-5 working days¹², so it’s roughly equivalent to using a bank.

Need the transfer to arrive more quickly? You can choose the slightly more expensive Express service (if available). Provided you use a debit card to pay for your transfer, this offers delivery within minutes¹².

Now, let’s move onto MoneyGram. Its average transfer times vary depending on the destination country. Many transfers sent to bank accounts arrive within a few hours, but it can take until the next day for some destinations¹³.

Remitly vs. MoneyGram - Safety

Security is critical when using any kind of financial service. It’s especially important if you’re sending large sums of money across the world, or you use transfer services regularly.

So, what level of safety and protection can you expect with Remitly and MoneyGram?

Here are some key things you should know about Remitly’s security measures¹⁴:

Account verification processes to maintain high standards of security, protection and trust.
A secure, encrypted server connection
Know Your Customer (KYC) compliance to verify users
Regulation by the Financial Conduct Authority (FCA) in the UK - it’s also registered with HMRC as a money service business
Card payment security from Verified by Visa and Mastercard SecureCode
24/7 customer support team.

MoneyGram doesn’t make too much information available about its security measures, although it does offer extensive fraud prevention advice for customers. The company is also FCA regulated¹⁵, and has an established reputation as a reliable money transfer provider.

Remitly vs. MoneyGram - Ease of Use

Lastly but just as importantly, you’ll want to look at which service is the most convenient to use. Ideally, it should be quick and easy to open an account, check prices and send your first transfer.

So, how highly do Remitly and MoneyGram score on ease of use? To compare the two, let’s run through the different options for accessing each service.

Website

Both the Remitly and MoneyGram websites work in similar ways. You can use them to check rates and fees for your chosen currency pair (e.g. GBP to USD), and to find information on supported countries and currencies.

And once you’ve created an account, you’ll be able to send your first transfer. An additional feature on the MoneyGram website is a location finder, for cash pickup transfers.

Mobile app

Remitly and MoneyGram both have mobile apps too, available from the App Store and Google Play for Apple and Android devices.

Remitly’s app offers many of the same features as its website. This includes sending transfers, viewing the latest exchange rates and checking your transfer status¹⁶.

You can also upload documents securely (if needed), adjust your sending limits and set up transfer notifications. You’ll sign into the Remitly app with your fingerprint, so it’s both secure and convenient to use¹⁶.

In comparison, the MoneyGram app offers the following features:

Check live currency exchange rates
Estimate fees
Send and manage money transfers.

Just like with Remitly, you’ll login to the app with fingerprints or facial recognition.

Want the same convenient transfer service whether you send money online or via a mobile app? Sign up with Wise, which offers an easy-to-use website and app. It’s easy to get started, and you can send your first transfer in just a few taps*

*Eligibility is subject to verification of customers identity

Remitly vs. MoneyGram - Which one is best?

So, after pitting Remitly and MoneyGram against each other on fees, rates, transfer times and more - which comes out on top?

The answer to this all depends on your needs. Remitly may offer some first time transfer promotions from time to time which could give you low to no fees. MoneyGram also offers the mid-market exchange rate for many routes, and has low to no fees for bank-to-bank transfers.

But if you want the mid-market exchange rate every time, an alternative like Wise could win out. You can send money worldwide with Wise, for low, transparent transfer fees.

Open a Wise account today

It’s fast, secure and convenient, whether you’re creating an account or sending your first transfer in just a few clicks. There are no annual or monthly fees, or hidden costs.

There’s also a handy Wise app for sending and tracking transfers on the move, and even a linked debit card.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Sources used:

Sources last checked on date: 04-May-2023

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.