Wise (formerly TransferWise) vs Western Union in New Zealand: Which is better?

Need to send money overseas? You may want to read our Wise vs Western Union¹ guide first.

Wise offers digital payments to 160+ countries which are deposited in bank accounts, as well as a holding account supporting 40+ currencies, with a linked card. Western Union is a specialist in international transfers and lets you send money more or less anywhere in the world to a bank account, or for cash collection.

Get all you need to know about Wise (TransferWise) vs Western Union on features, fees, exchange rates and more - so you can decide which might suit you for your next transfer.

What is Western Union?

Western Union was founded way back in 1861, initially as a telegraph company². Over time, Western Union moved into physical and digital money transfers, and today you can send money with Western Union to more or less anywhere in the world, either online or in person. In total, Western Union supports 24 transactions online per second, and has pickup options in 500,000 locations globally if you need to send cash instead of a digital payment.

Western Union is a huge global business which is regulated and licensed wherever it offers services, and which is safe to use.

Our Complete Review of Western Union in NZ 👉

What is Wise (formerly TransferWise)?

Wise (originally Wise) was founded in 2011 in the UK, and now has over 17 million customers globally. Wise services are available for individual and business customers, and include international transfers to 160+ countries, digital accounts and debit cards.

When you send a payment with Wise it’s deposited to your recipient’s bank account quickly, and with the mid-market rate for currency conversion. You can also use Wise to hold and exchange 40+ currencies, receive in 9 currencies, and spend with an international Wise debit card in 150+ countries. Business customers get all the perks available for individual users, as well as some business friendly extras like batch payments and multi-user access.

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Wise vs Western Union: Sending Money Abroad from NZ

Wise initially launched as an international transfer company, and while its services have evolved over time, secure and speedy overseas payments are still a focus. Western Union specialises in international payments - let’s look at how Wise vs Western Union shape up for international transfers:

It’s worth mentioning that new Western Union customers may be eligible for zero transfer fee on their first payment, or on specific payment routes. However, this doesn't really mean the transfer is free. Because Western Union includes a markup on the mid-market rate, there’s a variable charge added every time you send money.

The markup can change a lot depending on the details of your payment - transfers made to or from cash might have a different rate compared to a transfer set up online for example. To see the markup being used for your Western Union transfer you’ll need to compare the Western Union rate you’re offered against the mid-market rate you can find on Google or with an online currency converter.

You can model your NZD payment from a handy calculator on Western Union’s website. For comparison, below is an example calculator showing how much would the recipient receive with Wise:

Wise vs Western Union: Receiving International Transfers in NZ

So what about when you’re receiving money in New Zealand? You can get paid with both Wise and Western Union - but your options do vary between the 2.

It’s worth noting that with Wise you can get paid in NZD in a couple of ways. Your sender can either deposit the money to your normal NZD bank account if you have one, or to your Wise account, using local Wise NZD details. Western Union also offers a couple of options - to have money deposited in your normal NZD bank account, or for you to collect it in cash at an agent.

Here’s a head to head comparison of Wise vs Western Union when it comes to receiving payments.

Western Union offers cash collections in New Zealand which can be very convenient if you don’t have easy access to a NZD bank account or ATM. However, the costs which are paid by the sender can be on the high side when it comes to transactions in cash with Western Union. That’s because of the amount of labour involved at both ends - making it well worth comparing your options if you’re trying to get money to someone in New Zealand with low overall fees to pay.

The other option is to use Wise. If you're new in New Zealand, and don't have a local NZD account - you can get access to local NZD account details quickly through Wise. Simply register with Wise online or in-app, and get NZD details you can pass to the person sending you money. Their transfer will be deposited to your Wise account and you can use your Wise card to spend or withdraw your money easily. There’s no fee to receive NZD with Wise, and, as the payment will be processed as a local transfer it’s often the cheapest available choice for your sender too.

Summary: should you choose Western Union or Wise in NZ?

Whether Wise or Western Union is right for you will depend on what you need.

If you’re looking for a digital account that supports low cost payments with the mid-market rate, as well as options to hold, receive, spend and exchange multiple currencies, Wise may be the one for you.

If you’d prefer to send a payment in person or want to allow your recipient to make a cash pickup Western Union may be a better choice. Bear in mind that Western Union uses an exchange rate markup - which can be expensive even if you qualify for zero upfront transfer fees. Be sure to compare all your options before you decide, including the exchange rates and delivery times.