Western Union has been a top name in sending money across borders for years. But, it hasn’t grown much in volume transfers, even as the market grew by over 20% recently. Its share of the cross-border money transfer market has also been falling, starting from 2009.
Western Union used to be a big player in sending money from the USA to Mexico, with a 20% share. But in big markets, it has less than 10% share. Yet, it’s close to 50% in some smaller markets. This shows how the money transfer world is changing, making it important to look at other options.
Even though Western Union has a huge network in over 200 countries, new players like Wise and Remitly are catching up. Western Union took a long time to grow its digital business. It only reached its digital revenue goal in early 2019, much later than expected.
In this guide, we’ll look at Western Union’s competitors. We’ll explore the options that offer fast, safe, and cheap ways to send money across borders.
Introduction to Alternative Money Transfer Options
Looking into different money transfer options can help save money on fees and rates. Traditional banks are the most expensive, costing almost 13.40% of the amount sent. But, digital payment solutions offer cheaper and faster ways to send money. This section explores these alternative money transfer options, focusing on their benefits and main features.
Wise (formerly TransferWise) has some of the lowest upfront fees and clear rates, usually under 1% of the amount. Remitly is great for sending money to over 100 countries, making it a versatile choice. OFX also has no transfer fees, with rates between 1.35% and 4.50%.
Xoom and MoneyGram are known for their speed and ease. Xoom can send money in minutes for many transactions. MoneyGram has limits of $5,000 online but offers easy cash pick-ups at physical locations. Western Union also offers fast delivery to cash pickup locations, though bank transfers can take up to a week.
International wire transfers from the U.S. cost about $45 on average. This shows the need for cheaper options. Digital solutions like Wise send money to over 160 countries, with 50% arriving instantly and 90% in 24 hours. Revolut is also known for its strong security and customer satisfaction.
Here’s a quick comparison to see how different money transfer options stack up:
| Provider | Exchange Rate Markup | Transfer Speed | Fees |
|---|---|---|---|
| Wise | Less than 1% | Instant to 24 hours | Low upfront fees |
| OFX | 1.35% to 4.50% | 24 hours | No fees |
| Xoom | Variable | Minutes to days | Varies |
| Remitly | Variable | Minutes to 1-3 days | Low to high |
| Western Union | Variable | Same-day to 1 week | Varies |
By looking into these digital payment solutions and international remittance services, users can find the best option for their needs. It’s all about finding the right balance between cost, speed, and convenience.
Guide to Western Union Competitors
Western Union has over 550,000 agent locations in 200 countries. It’s natural to look for strong alternatives. Here’s a guide to some top Western Union competitors that could be great for you.
Wise, formerly TransferWise, is known for clear fees and fair exchange rates. It’s great for sending big amounts abroad. Its easy-to-use interface and no hidden fees have made it a favorite among users.
MoneyGram has over 200 countries covered with 350,000 agent locations and kiosks. It’s a strong rival to Western Union. MoneyGram offers fast and secure transactions, just like Western Union.
Currencies Direct gives good exchange rates and no fees for big transfers. It’s perfect for businesses and individuals sending large amounts. Its focus on customers sets it apart in the market.
There are also other strong competitors:
- TransferGo: It has over 7 million users and offers cheap transfers to over 150 countries.
- OFX: It works in over 190 countries and handles 55 currencies, great for big transfers.
- PayPal: With over 400 million users, its Xoom service makes fast transfers easy.
- Ria Money Transfer: It has over 402,000 locations in 160 countries, making it very accessible.
| Service | Coverage | Unique Feature |
|---|---|---|
| MoneyGram | 200+ countries | 350,000 agent locations |
| Wise | Global | Mid-market exchange rates |
| OFX | 190 countries | Handles 55 currencies |
| Payoneer | Global | 0.5% exchange rate markup |
| PayPal Xoom | Global | Quick transfers with various delivery options |
Looking at these options? Check out this guide to competitors. It helps you choose the best for your needs. Whether it’s Wise’s clear fees or MoneyGram’s wide reach, these alternatives offer many services.
Advantages of Using Licensed Money Transfer Services
Choosing licensed remittance providers for your international ACH transactions and secure money transfer has many benefits. One big plus is the strong security they offer. They use top-notch encryption, two-factor authentication, and strict identity checks to keep your money safe.
Services like Wise and Remitly are great at handling international ACH transactions. Wise supports over 40 currencies and gives bank account details in 9 different ones. Remitly, on the other hand, helps send money in over 100 currencies to 170 countries.
When it comes to saving money, Wise and XE Money Transfer are leaders. Wise’s fees start at 0.43% for sending money. They also offer good exchange rates and sometimes no transfer fees for certain routes. XE Money Transfer specializes in currency exchange and offers FX limit orders for better rates.
Wise and Remitly also offer premium features to make your experience better. They have cashback rewards, airport lounge access, and discounted stays. Their clear fee structures mean you always know what you’re paying for, without any surprises.
These services are also very convenient. Western Union, though more expensive, offers instant transfers for urgent needs. But Wise and XE also provide real-time tracking, making the process clear and easy to follow.
For more information and comparisons, check out this guide on alternatives to Western Union or look at detailed reviews of international bank wire transfers.
| Service | Advantages | Coverage | Fee Structure | Additional Benefits |
|---|---|---|---|---|
| Wise | Secure, cost-effective, transparent fees | 160+ countries | Starts from 0.43% | Cashback rewards, airport lounge access |
| Remitly | High coverage, various currencies | 170 countries | Varies by destination | Real-time expense tracking |
| XE Money Transfer | Competitive exchange rates, FX limit orders | Available worldwide | No transfer fees on specific routes | Currency exchange specialization |
| Western Union | Instant transfers, extensive network | Global, 200+ countries | Higher fees | Physical locations, accessibility |
Drawbacks of Using Other Services Compared to Wise and Currencies Direct
There are many remittance services out there, but not all are the same. A key thing to think about is the number of currencies they support. Wise benefits because it lets businesses hold balances in over 50 local currencies. This is more than Revolut, which only supports 28 currencies for international transactions.
Transfer speed is another issue. Revolut takes 3-5 days for transfers, which is slower than Wise. Wise usually finishes transactions in 0-2 days. This is important for businesses that need fast payments to manage their money well.
Flexible pricing plans are also important. Revolut has different plans, from free to enterprise, to fit various needs and budgets. Wise, on the other hand, has fewer payment plans. Even so, Wise’s fixed fee of $4.14 for receiving USD via wire is often better than Revolut’s costs, which depend on the user’s plan.
Currencies Direct has won awards like MoneyAge’s ‘Money Transfer Provider of the Year’ in 2016 and 2018. This shows they are trusted. But, some services might not have such recognition, making it harder for people to trust them. To learn more about these alternatives, check out this guide on top Remitly alternatives.
