Established in 1851 in New York, United States, Western Union has grown from a humble beginning to become a renowned fintech pioneer and a dominant player in the global money transfer industry. The company’s significant breakthrough came in 1861 when it completed the first transcontinental telegraph across North America, setting the stage for other international wire money transfer services.
Today, Western Union boasts a user base of over 150 million people. It has an expansive network of more than 500,000 agents spread across 200 countries and territories, including regions like China and Ukraine. However, despite its impressive reach and pioneering role in the industry, Western Union may not necessarily be the best payment service for everyone due to its inherent weaknesses.
We will not only delve into the advantages and disadvantages of using Western Union but also present you with the top ten alternatives to Western Union currently available in the market.
Benefits of Exploring Alternatives
Exploring alternatives to Western Union can be beneficial in several ways:
Cost-Effective: Numerous alternatives to Western Union potentially offer cheaper services. For instance, providers like Wise (formerly TransferWise) are often more cost-effective due to their competitive exchange rates and transparent fee structure.
Speed and Convenience: Some Western Union competitors offer faster money transfers. For example, WorldRemit provides secure online transfers worldwide with a choice of flexible payment options, including mobile money accounts.
Multi-Currency Accounts: Certain alternatives provide multi-currency accounts, streamlining the process of sending or receiving money in different currencies. This is particularly useful for businesses operating internationally or individuals who frequently travel or transact in different currencies.
Variety of Payment Options: Alternatives to Western Union often offer various payment modes, such as bank wire transfer, Cash App, Google Pay, PayPal, Venmo, Walmart2Walmart, and Zelle, providing more flexibility to users.
Potential for Higher Returns: Some alternatives like Fluid Finance offer additional benefits like high APY on your savings.
Cash Pickup Options: Certain platforms allow recipients to pick up cash directly, a feature that provides added convenience in regions where banking infrastructure may be less developed.
Enhanced Network: Some Western Union competitors have an extensive network that enables easy cash transfer in person.
By exploring these alternatives, users can find a service that best suits their needs, whether they prioritize cost, speed, convenience, or a combination of factors.
Wise
Wise, formerly known as TransferWise, is one of the leading alternatives to Western Union for international money transfers. The company was founded in 2010 and has since emerged as a significant player in the fintech industry, offering a cost-effective and straightforward solution for sending money abroad.
Pros of Using Wise:
Competitive Exchange Rates: Wise offers some of the most competitive exchange rates in the market, as they use the mid-market rate – the “real” exchange rate that banks use when trading money with each other.
Transparent Fee Structure: Wise operates on a transparent fee structure. The fees are displayed upfront, so users know exactly how much they are paying for the service.
Multi-currency Account: With Wise, users can hold and manage money in multiple currencies, which is particularly beneficial for those who frequently transact in different currencies or travel often.
Ease of Use: The Wise platform is user-friendly with an intuitive interface, making it easy for users to send money, track their transactions, and manage their accounts.
Cons of Using Wise:
No Cash Pickup: Unlike Western Union, Wise does not offer the option for cash pickup, which might be inconvenient for some users, especially in regions where banking infrastructure is not robust.
Slower Delivery Times: Depending on the countries involved and the payment method used, money transfers with Wise can take longer than some other services.
Customer Service: Some users have reported issues with customer service, including slow response times and difficulties resolving issues.
Wise is an excellent alternative for those who prioritize low costs and transparency in their international money transfers. However, users who need quick transfers or the option for cash pickups might want to consider other options.
Remitly
Remitly is a digital remittance service that allows users to send money abroad from the United States, Canada, Australia, and the European Union to over 50 countries worldwide. The company was founded in 2011 and has since become a popular choice for international money transfers.
Pros of Using Remitly:
Broad Coverage: Remitly offers services to a large number of countries, making it a versatile choice for international money transfers.
Flexible Delivery Options: Remitly provides multiple delivery options, including bank deposits, home delivery, and cash pickup at various locations.
Transparent Fees and Exchange Rates: Remitly displays its fees and exchange rates upfront, so there are no surprise charges.
Delivery Speed Options: Remitly offers both Express and Economy transfer options, allowing users to choose between faster delivery times or lower fees.
Mobile App: Remitly has a user-friendly mobile app that makes sending money abroad quick and convenient.
Cons of Using Remitly:
Higher Costs for Express Transfers: While Remitly’s Economy transfers offer competitive pricing, their Express transfers can be quite expensive compared to other services.
Limited Daily and Monthly Limits: Remitly imposes daily and monthly limits on how much money you can send, which might not suit users who need to make large transactions (source).
Customer Service: Some users have reported issues with customer service, including slow response times and difficulties resolving issues.
Remitly is a solid alternative to Western Union, particularly for those who need to send money to countries that may not be as well-served by other money transfer services. However, users who need to make large, frequent transfers may find the imposed limits restrictive.
Revolut
Revolut is a UK-based financial technology company that offers banking services, including money transfers. Founded in 2015, it has quickly gained popularity due to its innovative features and extensive services.
Pros of Using Revolut:
No Fee International Money Transfers: Revolut allows users to transfer money internationally without any fees, making it an extremely cost-effective option (source).
Real Exchange Rate: Revolut uses the interbank exchange rate, which means you get the best possible rate for your money transfers.
Multi-currency Account: With Revolut, you can hold, exchange, and receive money in more than 30 currencies, which can be beneficial for frequent travelers or those dealing with international transactions regularly.
Additional Features: In addition to money transfers, Revolut offers a range of other services like budgeting tools, cryptocurrency trading, and insurance services, making it a comprehensive financial platform.
Cons of Using Revolut:
Weekend Markup: Revolut adds a markup to the exchange rate on weekends, which can make transfers more expensive if you send money during this time (source).
Monthly Free Transfer Limit: While Revolut offers free international money transfers, there is a monthly limit. If you exceed this limit, there will be a fee for additional transfers (source).
Limited Availability: Revolut is not available in all countries, which may limit its usefulness for some users.
Revolut is a good alternative to Western Union for users who want a comprehensive financial platform with free international money transfers. However, the weekend markup and monthly transfer limit may be drawbacks for some users.
OFX
OFX is an Australian-based online money transfer provider that offers services to individuals and businesses for sending large amounts of money overseas. The company, founded in 1998, has become a well-known alternative to traditional banks and services like Western Union.
Pros of Using OFX:
No Maximum Transfer Limit: OFX does not impose a maximum limit on transfers, making it an excellent choice for large transactions.
Competitive Exchange Rates: OFX provides competitive exchange rates, especially for larger amounts, which can result in substantial savings.
24/7 Customer Support: Unlike many other money transfer services, OFX offers round-the-clock customer support, which can be particularly useful for urgent queries or issues.
Global Presence: With offices in six continents, OFX has a broad global presence, allowing it to serve customers across many different countries and regions.
Cons of Using OFX:
Minimum Transfer Amount: OFX requires a minimum transfer of $1,000, which could be a drawback for those wanting to send smaller amounts.
No Cash Pickup: OFX does not offer a cash pickup option; all transfers must be sent to a bank account, which may not be convenient for all users.
Transfer Speeds: Transfers with OFX can take a few days, which is slower than some other online money transfer services.
OFX is a strong alternative to Western Union for users who need to send larger amounts of money internationally. However, the minimum transfer amount and lack of cash pickup may not suit all users’ needs.
WorldRemit
WorldRemit is a digital money transfer service that allows individuals to send money abroad to more than 150 countries around the world. Established in 2010 and headquartered in London, WorldRemit has become a popular choice for international remittances.
Pros of Using WorldRemit:
Wide Coverage: With services available in over 150 countries, WorldRemit offers extensive global coverage.
Multiple Delivery Options: WorldRemit allows users to choose between different delivery options, such as bank deposit, cash pickup, mobile money, and airtime top-up.
Easy to Use: WorldRemit’s user-friendly platform makes it easy to send money overseas, even for those not accustomed to digital banking or remittance services.
Fast Transfers: Many transfers through WorldRemit are completed within minutes, making it a good option for urgent transfers.
Cons of Using WorldRemit:
Fees: WorldRemit’s fees can be higher than those of some other online transfer services, particularly for smaller amounts.
Transfer Limits: WorldRemit imposes limits on how much you can send, which vary depending on where you’re sending money and your payment method.
No Live Chat Support: While WorldRemit offers customer support, they don’t have a live chat option, which could make resolving issues slower.
WorldRemit is a viable alternative to Western Union for those who need to send money to countries that may not be as well-served by other money transfer services. However, its fees and transfer limits might be a downside for some users.
MoneyGram
MoneyGram is a global provider of innovative money transfer services and is recognized worldwide as a financial connection to friends and family. Founded in 1940, it’s one of the oldest and most reliable money transfer companies, operating in more than 200 countries with over 350,000 agent locations.
Pros of Using MoneyGram:
Wide Global Network: MoneyGram’s extensive network of physical locations makes it easy to send and receive money in many parts of the world.
Multiple Delivery Options: MoneyGram offers direct transfers to bank accounts and mobile wallets, and also has a cash pickup option.
Fast Transfers: MoneyGram provides same-day service and even instant transfers in some cases.
Cons of Using MoneyGram:
Higher Fees: MoneyGram often charges higher fees compared to other digital-first money transfer platforms.
Exchange Rate Markup: MoneyGram adds a markup to the exchange rate, which can make larger transfers more expensive.
Taptap Send:
Taptap Send is a mobile app providing a solution for sending money abroad quickly and affordably. It’s particularly popular for remittances to Africa and Asia (source).
Pros of Using Taptap Send:
Low Fees: Taptap Send prides itself on providing low-cost transfers, making it a cost-effective choice.
Easy-to-Use App: The Taptap Send mobile app is user-friendly and straightforward, simplifying the process of sending money abroad.
Good Customer Support: Taptap Send has a reputation for responsive and helpful customer support.
Cons of Using Taptap Send:
Limited Availability: Currently, Taptap Send only supports transfers from certain countries, and to a limited number of countries, mostly in Africa and Asia.
Transfer Speeds: While Taptap Send aims to process transactions within minutes, some users have reported delays.
Instarem
Instarem is a Singapore-based online remittance platform that offers money transfers to over 55 countries. It was founded in 2014 with a mission to simplify access to financial services.
Pros of Using Instarem:
Competitive Exchange Rates: Instarem uses mid-market rates for currency exchange, which can result in better value for your international money transfers.
Transparency: Instarem provides a detailed breakdown of the transfer, including exchange rate and any fees, before you finalize the transaction.
Loyalty Points: Instarem offers a unique loyalty program where users earn points on transactions, which can be redeemed for discounts on future transfers.
Cons of Using Instarem:
Fees: While Instarem’s exchange rates are competitive, it does charge a nominal fee on transfers.
Limited Delivery Options: Instarem only supports bank-to-bank transfers, which might not be convenient for everyone.
Customer Support: Some users have reported issues with customer support responsiveness and effectiveness.
TangoPay
TangoPay is a financial service that offers various features tailored to international money transfers. Here are some key aspects of TangoPay:
Fees: TangoPay stands out for its initial offer of free transfers for the first three months of use. After this period, a fee structure comes into play, but the specifics of this structure are kept private.
Exchange Rates: While the exact exchange rates are not publicly disclosed, TangoPay claims to offer favorable rates for its users.
Transfer Speed: TangoPay is known for promising fast transfer speeds, although the exact timeframes for these transfers are not specified.
Security: Ensuring the safety of transactions and user accounts is a priority for TangoPay. It is regulated by the Financial Conduct Authority (FCA) and employs advanced security measures, including instant alerts to safeguard user accounts and transactions.
Global Reach: TangoPay operates in over 70 countries. However, details on the specific currencies supported are not publicly available.
User Interface and Apps: The service provides a mobile application, which users can download from Google Play and the App Store, emphasizing ease of use and accessibility.
Customer Support: TangoPay offers customer support through a chatbot and email, ensuring that users can get help when needed.
Special Features: One of the unique offerings of TangoPay is its referral program, where users can earn rewards for referring friends to the service.
For individuals looking for a service focused on international money transfers, TangoPay presents a range of features and services. However, it’s always advisable to check the most current information directly from TangoPay, either through their official website or customer service, to make an informed decision.
