MoneyGram vs Western Union: Which is better for International Transfers from New Zealand?

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.

Table of contents
What is MoneyGram? What is Western Union? MoneyGram vs Western Union in NZ: Overview MoneyGram vs Western Union NZ: Comparison MoneyGram Fees vs Western Union NZ: Pricing The bottom line: What should you choose?

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.

What is MoneyGram?

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.

What is Western Union?

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.

MoneyGram vs Western Union in New Zealand: an Overview

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:

• With both Western Union and MoneyGram you can send money completely online and in-app, or through an agent location
• With both Western Union and MoneyGram you can send money to bank accounts, or for cash collection - although service availability varies by country
• Both Western Union and MoneyGram use variable fees based on payment type and destination
• Both Western Union and MoneyGram make money from currency exchange - this means that the exchange rate includes a markup - a fee
• For bank deposits, MoneyGram delivery time varies from 1 hour to one day⁴ Western Union delivery time varies from minutes to 5 working days, depending on the destination and payment details⁵
• For cash collection payments, both MoneyGram and Western Union can offer a more or less instant delivery time
• MoneyGram has much lower payment limits compared to Western Union⁶, although you can send more in person than you can online.

MoneyGram vs Western Union NZ: Main Comparison

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

MoneyGram Fees vs Western Union: Fees & Rates

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

*Correct at the point of research - 17th April 2024

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.

Avoid Conversion Fee and Exchange Markups on MoneyGram or Western Union: Exchange money with mid-market rate with Wise

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.

Send money abroad with Wise

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

The bottom line: Should you choose MoneyGram or Western Union?

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.

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Sources:

1. MoneyGram NZ
2. Western Union NZ
3. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
4. MoneyGram FAQ
5. Western Union help - how long does a payment take
6. Western Union FAQ - how much can I send%20from%20New%20Zealand.)
7. Speed: The speed of transaction claim depends on funds availability, approval by Wise's proprietary verification system and systems availability of our partners' banking system, and may not be available for all transactions