Wise (formerly TransferWise) vs PayPal in New Zealand: Which is better?
How does Wise compare against PayPal in New Zealand? Read on from our Wise vs PayPal guide comparing money transfers, international payments, and more.
Trying to decide which is better between MoneyGram1 vs Western Union2? Both offer pretty similar services for New Zealand customers, but they’re not exactly the same, which means one might suit you better than the other.
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So - is MoneyGram better than Western Union? Or the other way around? Read on as we look at all the features, fees and delivery information you need. We’ll also introduce an alternative - Wise - which can offer quick international payments with mid-market exchange rates and low, transparent fees3, to help you pick the right provider for your needs.
MoneyGram is over 80 years old, and offers payments to 200+ countries and territories, online and in person. You can send money to bank accounts directly, or have the recipient get their cash in person at one of the 430,000+ global MoneyGram locations. The exact services available depend on where you’re sending money to, but the options can be pretty flexible, with cash collection transfers available almost instantly.
MoneyGram is safe to use and has all the relevant licences to trade wherever it offers services.
Western Union has been in business for over 150 years, and offers both physical and digital money transfers. You can send money with Western Union to 200+ countries or territories globally - more or less anywhere in the world excluding countries where practical or legal constraints prevent this.
Western Union supports a staggering 24 online transactions per second, and offers cash payment and collection options in 500,000 locations globally. As you’d expect of a huge global business, Western Union is regulated and licensed wherever it offers services.
We’ll get into the full details of whether Western Union or MoneyGram is best through this guide - first let’s start with an overview of the two providers, based on features, services, convenience and fees:
On with the debate:_ is Western Union or MoneyGram better for customers based in New Zealand?_ Let’s take a head to head comparison on a range of key features to help you decide:
MoneyGram | Western Union | |
---|---|---|
Countries served | 200+ | 200+ |
Send money completely online and in-app | Available | Available |
Send money in-person | Available | Available |
Send directly to accounts abroad | Available | Available |
Send to cash pickup points | Available to over 400,000 agents | Available to over 500,000 agents |
Transfer Fees | Variable fees based on payment type and destination | Variable fees based on payment type and destination |
Exchange rate | Exchange rate includes a markup - a fee | Exchange rate includes a markup - a fee |
Limits | Up to 14,000 NZD a month | Up to 80,000 NZD per payment |
Delivery Time | Varies from 1 hour to 1 day, depending on the destination and payment details | Varies from minutes to 5 working days, depending on the destination and payment details |
Both MoneyGram and Western Union have variable fees and exchange rates, which means you need to model your payment online to see which is best for you. That’s easy to do, and with no commitment, at either provider’s website or on their apps.
Bear in mind that both providers may offer new customer discounts which can include low or no transfer fees, and favourable exchange rates. That means it’s important to compare your options every time, as the deals on offer can change quickly. It’s also worth comparing other providers, like Wise, for a bit of balance.
We ran an example comparison, on a payment from New Zealand to the UK, to give a flavour of how it works. We’ll unpack the results in a moment - here’s what you need to know:
Fee | Total cost | Recipient gets | Delivery time | |
---|---|---|---|---|
MoneyGram | 4 NZD | 1,004 NZD | 445.61 GBP | 0 - 2 business days |
Western Union | 0 NZD | 1,000 NZD | 466.83 GBP | 0 - 1 business day |
Wise | 4.47 NZD | 1,004.47 NZD | 471.93 GBP | 0-2 business days. (50% of payments are instant; 90% arrive in 24 hours)7 |
As you can see in this comparison, your recipient gets more with Wise. This is because of the exchange rate being used. Wise actually has the highest upfront fee of all 3 providers - but because Wise gives the mid-market exchange rate, with no markup, the recipient gets more in the end, and the costs are really easy for you to check and compare.
It’s worth noting upfront here that MoneyGram and Western Union both offer some services Wise can not - including paying in cash and sending money for cash collection. If you want to use cash for your international transaction it’s important to compare services like Western Union and MoneyGram on fees and exchange rates to find the one that’s right for you. Often there’s not much in it on overall costs, so you may also choose to look at other factors like the delivery times and how conveniently located their agent offices are to help you decide.
As we saw above, because Wise uses the mid-market rate on currency conversions, it can mean your recipient gets more in the end.
Wise is a specialist in international transfers and built its own payment network to move money faster and at a lower cost. As a result, Wise can often move money very quickly - or even instantly - and with fewer fees to pay overall. You can send money to 160+ countries with Wise, right from your phone or app, to be deposited into your recipient’s bank account. Your NZD will be converted using the mid-market exchange rate and the fee you pay - which starts from just 0.39% - is then split out for transparency.
Wise also offers multi-currency account and card services for individuals and businesses, allowing you to hold and exchange 40+ currencies conveniently. Register your account online or in the Wise app, and add money in NZD - you can then either convert to the currency you need for overseas spending, or just let the card do the conversion for you when you pay. You get the mid-market rate and low fee every time, and you’ll also have some free ATM withdrawals every month for those times that only cash will do.
Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
There’s no out and out winner when it comes to Western Union vs MoneyGram NZ. The services they offer are pretty similar, and there’s not much in it on fees. Which is best for you might come down to personal preference and other factors like how close the agent location is for you and your recipient.
Other important factors may be upper limits on payments - Western Union allows for higher value online payments compared to MoneyGram. On the other hand, MoneyGram may offer quicker delivery times compared to Western Union- but in the end the length of time it takes for your money to arrive does depend on the specifics of the payment.
In our comparison, Western Union was a little cheaper than MoneyGram, and Wise cost the lowest when it comes to depositing an online payment into a bank account. If you’re looking to send a payment in cash or for cash collection compare Western Union and MoneyGram on fees and rates - but if you’d like your money to be deposited to a bank account, throw in Wise as another option to compare, to see if you can get a better deal.
Sources:
*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.
How does Wise compare against PayPal in New Zealand? Read on from our Wise vs PayPal guide comparing money transfers, international payments, and more.
How does Wise compare against Western Union in New Zealand? Read on from our Wise vs Western Union comparison to see what would work best for you.
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