8 Must Knows Before You Sign Up

Summary

• Xoom can be useful for smaller transfers ($1000 USD and below) especially where cash is needed.
• How recipients receive money is very different between the two (this may be the decider)
• Xoom only does personal transfers (TransferWise does business as well)

But wait there is more. 🙂

In some cases we think there are others you should consider and we will let you know about them.

Disclosure: This post contains affiliate links which can save you money! For more information, see my disclosures here.

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The Big Differences

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

The Big Differences

Xoom (review) and TransferWise (review) are worlds apart in many ways with some crossover. Before we dig into the nitty gritty, here are some big differences to save you a whole lot of time.

Personal VS Business Transfers

TransferWise offers both personal and business transfers while Xoom only focuses on personal remittance.

When it comes to business TransferWise takes international money to the next level starting with showing you the fees up front on their calculator and comparing with other services. Offering dedicated accounts that help you invoice easily (integrate with Xero), ability to hold multiple currencies, get paid like a local, or pay your overseas contractors and suppliers. You also get a multicurrency wallet and a MasterCard prepaid debit card for business expenses.

Costs and Fees

TransferWise keeps their fees low by using the interbank rate (explained) and by being very transparent about the fee they charge.

Xoom also charges a fee, but in addition to this they also have a margin built into their exchange rate.

This can increase the cost of your transfer. The key is to be aware of it and factor it into the total fees.

While Xoom is rarely the most affordable option, a whole lot of additional convenience can be gained like how your recipient gets paid.

Skip to “Costs and Fees (+ Hidden Fees?)” below to learn more.

You might also like “Western Union Review” and “Xoom VS Western Union”

How Your Recipient Gets Paid

Your recipient must have a bank account if you’re sending money with TransferWise.

Xoom, on the other hand, offers other options like cash payments, bill payments, and mobile wallet transfers.

Both Xoom and TransferWise are great for smaller transfers ($500 USD and below). But if you’re keen to save big on those large and extra-large transfers (Over $10,000 USD), we recommend services that reduced the percentage fees they charge as amounts increase.

1. Who Can Get One

Winner: Tie

Xoom has a larger base of receiving countries but they don’t support registrations from residents of Australia, New Zealand, Middle East, Asia, or Africa.

TransferWise has a relatively smaller based of receiving countries but they do have a great footprint in Asia, Middle East, South America, Australia and New Zealand.

But if you’re a frequent traveller, TransferWise is a great option to send money on the go or get paid like a local (you get bank details in major currencies like USD, CAD, GBP, EUR, AUD, and NZD with TransferWise Borderless).

2. Costs and Fees (+ Hidden Fees)

Winner: TransferWise

Hidden Fees

TransferWise’s transparent fee structure is the biggest reason why they’re so popular.

TransferWise keeps their costs low and transparent by charging only a % of the transfer amount. You can see the total amount your recipient will get before you initiate a transfer on the money transfer widget.

Since TransferWise has local bank accounts worldwide, they also keep 3rd party the fees low if not zero.

On the the other hand, while you can check the fees before hitting “Send ” on Xoom’s fee calculator, it’s not obvious what their total fees are. This is because their total fees include a mark-up on the exchange rate.

Also if you opt for a bank transfer to fund your remittance, banks can also charge fees. It is unclear if Xoom have local bank accounts in the areas they service.

Basically, if you can transfer bank to bank – the fees can be significantly less with TransferWise.

3. Currencies

Winner: Xoom

With a wider base of receiving countries and supported currencies, Xoom wins this round hands down.

4. Ways to Send Money

Winner: TransferWise

TransferWise offers a wider variety of funding options depending on your location. Bank and card transfers are available everywhere, but other location-specific funding options are a great add on.

5. Payout Method

Winner: Xoom

Xoom supports cash payouts and easy utility bill payments in supported countries. So if your recipient doesn’t have a bank account, Xoom is a great option for your international transfers.

You might also like to compare Xoom with WorldRemit (review).

6. Transfer Speed

Winner: Tie

Neither Xoom or TransferWise offer instant transfers, and there isn’t a noticeable difference in transfer speed between them. In our experience, sending money with both has been easy and fast.

Speed of transfers is usually related to the time it takes for third parties like banks to dot all their I’s and cross all their T’s.

Generally, it’s always a good idea to consider banking hours and upcoming public holidays.

If you need instant transfers, PayPal or Western Union maybe your best bets.

7. Reviews (Incl. negative reviews)

Winner: Tie

Both Xoom and TransferWise are solid performers when it comes to their reviews.

Both suffer from a relatively small number of negative reviews mostly from delays in the transfers and even suspended accounts both of which occur industry wide.

However, one of Xooms key complaints is their poor exchange rate which comes from people who bother to notice.

This combined with the particularly proactive customer service from TransferWise scores a few more points in our book.

8. Customer Service and Support

Winner: TransferWise

Xoom offers multilingual support, but TransferWise shines with their prompt and helpful customer service. This is always reassuring when your money is on the line.

Verdict

3 Ties, 3 TransferWise Wins and 2 Xoom Wins, they are pretty close but as we have seen very different when you look at each part of the service.

Xoom offers more options and these come with a price.

Generally Xoom is rarely the most affordable option as total fees can add up compared to 0.6-2% for TransferWise.

TransferWise also has helpful add-ons such as a multicurrency wallet and prepaid MasterCard debit card (with TransferWise Borderless). Oh and, you can process both personal and business transfers on TransferWise.

So which service is right for you?

Essentially, Xoom is a good option if you’re looking for cash payouts below $1000. If can pay into a bank account TransferWise is most likely better.

Happy Transfers!

8 Must Knows Before You Sign Up

On one hand you have the oldest currency transfer company in the world – Western Union, established in 1851 and inevitably top of mind when you think “I need a fast, reliable, flexible option to send money across the world.”

On the other, you have Xoom – a new age giant with PayPal’s reputation and weight behind it.

At a glance, it may seem like they offer the same thing.

But when you dig deeper, there are important differences.

Good news!

We’ve done the research to make it easy for you.

Here we’ll show how Xoom and Western Union stack up against each other in 8 important categories.

To help, we award a Winner in each of the categories, so you can see what works best for you. (Look for the “Winner” in each category and don’t miss our verdict (below))

But wait there is more. 🥩 🔪

In some cases Xoom and Western Union may not be best for you and we suggest some alternative options.

Let’s dive in.

Disclosure: This post contains affiliate links. For more information, see my disclosures here.

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3 Big Differences

1. Who Can Get One?
2. Transfer Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

3 Big Differences

Before we get stuck into the 8 categories, it can help a lot to know the big differences between Xoom (review) and Western Union.

1. Type of payments

Xoom only offers personal remittance options.

That is, you can only send money to and pay bills for your friends and family. They have a bunch of checks and balances in place to verify that funds are indeed being transferred for personal purposes to remain in their scope of service.

Western Union, on the other hand, offers both personal and business transfers.

They have a wide network of agent locations across the world and this makes it easy for them to support both smaller and larger transfers for personal or business purposes.

2. How you send money

Xoom is for folks who are comfortable handling all aspects online. They have a great online interface and an easy-to-use app that lets you check their fees, set up transfers, and stay updated on the status of your transfer.

Western Union lets you set up transfers online, in cash at agent locations, via their app, or on a phone call.

Essentially Western Union has got your back whether you’re comfortable setting up everything online or need to speak to a human during the process.

3. Helpful extras

Xoom’s extra services include bill payments for your family and friends.

Apart from bill payments and business transfers, Western Union also offers a prepaid debit card (the Netspend card – powered by MasterCard or Visa, depending on the country).

Both services are relatively expensive compared with most money transfer services which focus on transfers to bank accounts.

There are also services like WorldRemit (review) that allow cash pickups which are cost effective and excellent.

While Western Union is available in almost every country worldwide, their “Bad” reviews (uncovered below) are far more significant compared to Xoom. 

If you are planning on sending smaller amounts of a few hundred dollars quite regularly, don’t miss our discussion comparison of remitters which also includes like Skrill, Remitly and Moneygram.

1. Who Can Get One

Winner: Western Union

While Xoom has a wide base of receiving countries, the supported sender countries are limited.

Western Union has both – a wide base of both sender and receiving countries, including over 500,000 agent locations and pick up points.

2. Costs and Fees (+ Hidden Fees)

Winner: Tie

Both Xoom and Western Union have complex fee structures but you have a lot of flexibility in the way you fund the transfer and the way money is received.

Trying to figure out the exact fees you are being charged is quite difficult especially considering the biggest fee is often the margin built into the exchange rate which you need to calculate to get a full break down of of all the fees.

Even then, there may be other fees.

Additional (sometime hidden) fees

Additional fees that can drive up the cost of transferring money with Xoom and Western Union include a cash advance charged by your credit card company and fees charged by banks at either end for (bank-to-bank transfers).

And if you’re opting for Western Union, some agent locations may also charge pick up or set up fees.

Bottom line?

Xoom and Western Union are rarely the cheapest options for moving money internationally. But it can be worth paying a premium for the flexibility they offer.

However for transfers less than $7000 USD if you’d like to save big on transfers and instant transfers aren’t high on your list, we recommend going with TransferWise (review) who are known for their low, very transparent fee structure. If you need cash to arrive check out WorldRemit (review).

You might also like our comparison of TransferWise VS Western Union

3. Currencies

Winner: Western Union

Western Union wins this round with a larger selection of supported currencies.

4. Ways to Send Money

Winner: Western Union

Western Union has a slight edge here with cash inputs for setting up transfers (but it can make a world of difference to some folks).

5. Payout Method

Winner: Tie

Xoom and Western Union are head-to-head here with all the different payout methods. So if you’re looking for a lot of flexibility for your transfers, you can’t go wrong with either service.

6. Transfer Speed

Winner: Western Union

Western Union offers a lot of flexibility so you can choose your transfer speed based on your needs.

While Xoom’s card-to-bank transfers also usually arrive in minutes, this can vary based on the currency corridor and amount.

So if you need specific and assured timelines for your transfers, Western Union is a great option.

And though the “In Minutes” service is usually more expensive, it’s well worth paying a premium during emergencies.

7. Reviews (Incl. negative reviews)

Winner: Xoom

Both Xoom and Western Union offer a lot of flexibility for your international transfers by supporting a wide base of receiving countries, 100+ currencies, and a variety of payout methods.

However, Xoom has risen to the occasion and stepped up their customer service game, which has led to better user reviews on Trustpilot.

8. Customer Service and Support

Winner: Xoom

Both services offer multi-lingual support, which is really helpful.

In some cases, while Western Union can be reached at a physical location, Xoom’s customer service is easier to get hold of.

Verdict

With 3 wins for Western Union, 2 wins for Xoom, and 3 ties, you can be rest assured that both are potential options for moving your money.

But let’s make it easier for you.

Xoom’s edge: strong presence in the US, Canada, UK, and Europe with the convenience to set up and track your personal transfers online. If you need multi-lingual support, they’ve got your back. And, they support a variety of payout methods.

Western Union’s edge: supports sign ups from pretty much anywhere in the world, dedicated accounts for personal and business transfers, flexible transfer speeds and ways to receive money.

So which service is best for you?

We’d suggest you weigh your options based on your specific requirements: long term and short term needs (personal transfers only or business transfers as well), location, and target currency corridor.

Also consider that they have some great competitors (above) that should be considered if low, transparent fees are important to you.

Happy Transfers!

5 Best Alternatives

Venmo is great for local transfers in the US.

But there’s one massive drawback – you can’t use Venmo for international transfers.

So what are the options?

Thankfully there are several workarounds that don’t involve painfully expensive and sometimes hidden bank fees.

Here are 5 great services you can turn to, depending on where you want to send money, the amount, and your preferred payout methods.

TransferWise for example enables you to do many of the same things Venmo does, but also makes international transfers cheap, fast and even fun. We will cover the details but if TransferWise doesn’t meet your needs, there are four others including WorldRemit, Remitly, OFX, and XE that should be perfect.

More on that in a bit.

First, let’s get clear on what you can and can’t do.

Disclosure: This post contains affiliate links and potential savings on transfers if you use some of the links! For more information, see my disclosures here.

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1. What is Venmo?
2. Venmo Costs & Fees
3. Does Venmo Work Internationally?
4. Can You Use Venmo While Overseas?
5. Venmo Alternatives
   1. TransferWise
   2. WorldRemit
   3. Remitly
   4. XE
   5. OFX
6. Venmo Alternatives Snapshot
7. Verdict

1. What is Venmo?

Venmo is a payment service owned by PayPal with the exclusive intent of making mobile payments fast, easy, and affordable in the US.

With Venmo you can:

• Send money to friends and family in the US using their phone number or email. They’ll get instant access to the funds if they have a Venmo account. If they don’t have an account, they can just create one in a few minutes. You can also sync your Facebook or phone contacts to find your payee. It’s that easy.
• Pay for goods and services on apps that have approved Venmo as a payment merchant (there are plenty of those)
• Easily split and settle up expenses with friends and family in the app
• Track all your payments in the app
• Make payments with your bank account, credit card, or debit card.
• Apply for a Venmo MasterCard, which is widely accepted in stores in the US

2. Venmo Costs & Fees

How much does Venmo really cost?

The good news is Venmo doesn’t charge you for most of its services.

• You won’t pay any fees for registering and holding an account
• No monthly or annual fees
• There are no charges for receiving payments in your Venmo account
• No charges for online payments
• Sending money from a linked bank account, debit card or your Venmo balance is free
• In-network ATM withdrawals with your Venmo MasterCard are free

But there are some fees:

• Out-of-network ATM withdrawals will cost you $2.50 per withdrawal
• Funding a transfer with your credit card will cost you 3% of the transfer amount
• Venmo Exchange Rate? Unfortunately there isn’t even an expensive option, because you can’t do it.
• However you might be able to use Venmo while overseas…

3. Does Venmo Work Internationally?

Officially Venmo says that its service is “only available in the United States and only compatible with US based bank accounts and phone numbers. You must also be able to send and receive SMS/text messages from short codes.”

So the official line is clear, Venmo is “only available in the US”. However of course your US phone and US bank account can all be accessed while overseas.

This means in theory Venmo can be used while overseas and there are numerous posts online (like on reddit for Europe, Canada and the UK) that verify this is the case, but some suggest you might need to use a VPN.

Despite there being potential workarounds, Venmo is not a recommended option for international transfers. There are lots of fantastic service options available that more than fill the gap and could be cheaper and more convenient.

All the ones we suggest work well in the US as well!

4. Can You Send Money with Venmo to People Overseas?

If only Venmo had a foreign transaction fee. Since Venmo only works with US bank accounts and phone numbers if you need to send money to a family member to Canada or a friend who’s in Europe long term, Venmo is not the way to go as they will likely have bank accounts and cell phones in those countries.

What are the alternatives then?

Let’s dive in.

5. Venmo Alternatives

Don’t miss the Alternatives Snapshot table below.

5.1 TransferWise

TransferWise is a great Venmo alternative because in addition to international transfers some of their other services are pretty awesome too.

The important bit;

TransferWise makes bank-to-bank and card-to-bank transfers easy and affordable at interbank rates and they show you upfront exactly what you will pay in fees and you can even see how they compare with others. They specialise particularly in sending, receiving or spending money abroad and are on a mission to make it as cheap, convenient and fair as possible.

Visit TransferWise Widget and Compare

Availability: They are available from 59 countries (including US, UK, and Canada) and support transfers to 60+ countries in 40+ currencies.

Strengths: Low and transparent fees, easy online interface, great customer service, specialised in international money transfers

Fees: We love TransferWise for their transparent fee structure. Typically, TransferWise’s fees depend on how you fund your transfer (bank transfer or credit or debit card), the amount you’re sending, and the target currency.

Usually, their fees are between 0.4-1% of the transfer amount, which is extremely competitive compared to banks (who charge 3-5% of a transfer). Another great thing about TransferWise is that you’ll always be getting the best exchange rate with them. They never add a markup to the exchange rate which other providers typically do and believe in radical transparency.

TransferWise has created an alternative to the network that banks use to send money internationally, which allows it to minimise fees when sending money all aver the world.

TransferWise also offers a multi-currency account and a prepaid MasterCard (accepted pretty much anywhere globally and great for online purchases) You also get international bank details in major currencies like USD, CAD, GBP, EUR, AUD, SGD, and NZD which makes getting paid or accepting money in those currencies as if you had bank accounts in those countries. This means you can receive payments in those currencies for free and you avoid bad exchange rates.

If this all sounds pretty great check out our full review of the TransferWise Transfer Service.

5.2 WorldRemit

WorldRemit is a Venmo alternative for international transfers if your recipient doesn’t have a local bank account. With WorldRemit, you can send cash, initiate mobile wallet transfers, and even top up your recipient’s prepaid mobile with their Air time service.

Availability: WorldRemit is available in 44 countries, including the US, UK, and Canada and support transfers to 150 countries worldwide.

Strengths: Wide selection of receiving countries and many payout methods.

Fees: WorldRemit’s fees depend on the target currency, payout method, how you fund your transfer, and the transfer amount.

WorldRemit’s exchange fees depend on market fluctuations (so not at the interbank rate). They charge a margin on the exchange rate and their fees range between USD 3.99 and USD 24.99, depending on the currency and pay out method.

Typically, transfers funded with a credit card are more expensive and banks at either end can also charge fees. But their rates are still great compared to high street banks.

Cash transfers are a bit more expensive. But you can save big on your transfer if your recipient chooses to receive the funds in a local currency.

See our full review of WorldRemit here.

5.3 Remitly

Remitly makes currency transfers fast and affordable for immigrants based in developed countries to their families in developing nations.

With Remitly you can send cash as well as transfer funds to your recipient’s mobile wallet or bank account.

Availability: Remitly is available in 16 developed countries: UK, US, Canada, Australia, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden and supports transfers to family members in 50 countries worldwide (personal transfers only).

Strengths: Instant international transfers, focused on personal transfers, many payout methods.

Fees: Remitly’s fees vary based on your sending country, the transfer amount, selected service (Express or Economy – which determines transfer speed), and the target currency.

You can send money instantly to your family members with Remitly’s Express service.
These transfers can only be funded with a credit card and are typically more expensive. But it can be really handy in an emergency.

Their Economy service is more affordable but also slower (3-5 days). You can fund these transfers with a bank transfer or a debit card.

For some receiving countries, Remitly waives their transfer fees if you send more than USD 1,000 via the Economy service. This can turn out to be a great deal if you want to cover personal expenses for your family but don’t really need to funds money urgently.

Remitly limits transfers between the 16 sender countries, so Venmo is still a great option for local transfers in the US. But if you’re looking for international fund transfers in minutes to your family members who are based outside the US, Remitly is a great alternative.

Want more details on how Remitly works? Check out our full review here.

5.4 XE

XE is one of the biggest players in the international money transfer arena, with support for both personal and business transfers to almost every country across the globe.

Availability: XE is available in the US, Canada, UK, Europe, Australia, and New Zealand and supports transfers to 170+ countries in 60+ currencies.

Strengths: Supports many receiving countries, enables fee-free transfers (with a caveat) at the mid-market rate, phone support for transfers

Fees: XE makes money by charging a % on the mid market exchange rate (0.3-1.2% of the transfer amount, depending on the currency), and this fee decreases as the amount increases. This makes XE a great option for transferring large amounts (USD 1000 and above) to recipients who have a bank account (XE doesn’t support cash picks or mobile wallet transfers).

Want the low down on how XE works  see our full review here.

5.5 OFX

Looking for a currency transfer service that can help you process those large transfers ($7000 USD and above) from the US?

OFX lets you set up these large transfers online (bank to bank transfers only) and also provides phone support, which we find extremely reassuring. After all, when a substantial amount is on the line, it’s always nice to be able to speak to a human instead of jumping through digital hoops.

Availability: OFX is available in the US, Canada, UK, Australia, New Zealand, Singapore, and HongKong and supports transfers to 190 countries in 55 currencies.

Strengths: Great for large transfers, offers phone support.

Fees: OFX sometimes charges a flat 15% fee + a margin on the exchange rate for all transfers below $10,000. Plus, they have local bank accounts in over 115 countries and can help you avoid the extra fees banks may end up charging.
OFX may charge a fixed fee of $15, however if you click here you can avoid these fees all together.

Need more details before setting up your transfer with OFX and get the $15 fee removed, check out our full review here.

6. Venmo Alternatives Snapshot

Venmo Alternative	Best for	Limitations
TransferWise – Check out their full review	One of the best and most affordable services for international bank-to-bank or card-to-bank transfers for low amounts ($7000 USD and below). Our top pick.	No instant transfers, no cash pick ups
WorldRemit – Check out their full review	Affordable transfers to 150+ countries from the US. Cash pick ups and mobile wallet transfers supported.	No instant transfers
Remitly – Check out their full review	Instant international transfers from 16 sender countries to 50+ countries worldwide. Cash pick up and mobile wallet transfers supported.	Personal transfers only
XE – Check out their full review	Great for transfers from the $1000 US and above. Provides phone support for transfers.	Bank-to-bank transfers only
OFX – Check out their full review	Excellent option for sending USD $7000 USD and above. Great phone support for transfers.	Bank-to-bank transfers only

7. Verdict

Venmo is a no-brainer for transferring funds to friends and family if you’re in the US.

If you are travelling and have a Venmo account, it is probably not a good way to do as we discovered above.

But if you need to send money home, pay for things or even transfer funds to yourself internationally, you can’t go wrong with TransferWise especially amounts below $7000 USD. And if you’re a digital nomad, expat or frequent traveller, you’ll love the optional extras that come with TransferWise Borderless.

Want to send cash instead of a bank transfer? WorldRemit and Remitly (instant personal transfers only) are great alternatives.

And if you’re looking for some extra support and savings for those large transfers (amounts above $7000 USD), we suggest OFX or XE.

Happy Transfers!

Can You Do Better? – Costs, Services and Much More

TransferWise is no doubt one of the best money transfer services out there.

Summary

• Great rates, excellent customer service, transparency on fees
• May not always be the right choice for you

What could you be missing out on? 🤔

And who can you turn to when TransferWise doesn’t line up with your specific needs? 👍

Let’s find out.

Disclosure: This post contains affiliate links and savings on transfers if you use some of the links! For more information, see my disclosures here.

1. 7 Ways TransferWise Works
2. 8 Ways They Might Not Work (plus who might be better!)
3. TransferWise Alternatives
   1. TransferWise vs TorFX
   2. TransferWise vs OFX
   3. TransferWise vs XE
   4. TransferWise vs WorldRemit
   5. TransferWise vs CurrencyFair
   6. TransferWise vs Remitly
   7. TransferWise vs N26
   8. TransferWise vs PayPal
4. TransferWise Alternatives Snapshot
5. Verdict

1. 7 Ways TransferWise Works

Before uncovering other services which may be better it is important to establish what is great about TransferWise.

TransferWise is known for their low and transparent (bank-beating) rates.

And here’s the kicker: You can see exactly the fees you will pay and how much money will arrive using this widget (opens new tab).

You can also compare with other services at the same time.

As you will see, they let you transfer money at the interbank rate which they call the “real rate” without charging a margin on the exchange rate.

So how do they make money?

By charging a variable % of the transfer amount, which they show.

As we said in our full review;

far cheaper than banks and insanely transparent starting with the real exchange rate and then showing the fees up front. They are particularly good at smaller transfers …

But wait – before we get stuck into transfers for many people the Borderless account is a potential game changer that you might want to know about.

The optional Borderless Account (review) enables a multi-currency account to hold and manage money in 40+ currencies, a prepaid MasterCard debit card (that’s great for online payments as well as while travelling) with international bank details in most major currencies (for example, GBP, USD, CAD, AUD, NZD, and EUR).

For now let’s stay focused on money transfers.

When is TransferWise right for you?

1.1 You’re comfortable handling all aspects of money transfer online: TransferWise is an online only service that lets you make card-to-bank and bank-to-bank transfers.

1.2 You want to send small amounts: Since TransferWise charges a % of the transfer amount in transfer fees, they are great for transferring smaller amounts.

Below $7000 USD / 4000 GBP /  9500 AUD/CAD / 5000 EUR is considered a small amount.

1.3 Your recipient has a bank account: Want to send money directly to your recipient’s bank account? TransferWise is a great option.

1.4 You don’t want any hidden fees: TransferWise maintains local bank accounts in all the areas it supports. This means your very unlikely to face any unexpected fees from banks at either end (while funding your transfer or when the transfer amount reaches your recipient’s bank account).

1.5 You need a multi-currency wallet: If you frequently move money for personal or business reasons, a multi-currency wallet is a great perk enabling you to switch between currencies with very low fees. Once you transfer funds to your wallet, you can easily lock in a favourable exchange rate and initiate a transfer.

1.6 You want a prepaid MasterCard debit card (no to low fees) for travelling and paying for goods online: The prepaid MasterCard debit card is issued free with TransferWise Borderless. There are no annual fees or minimum balance requirements. Plus, you get free ATM withdrawals of £200/month worldwide (with a 2% fee applicable after the limit). Currency conversion fees apply when you pay in a foreign currency online or withdraw money from an ATM abroad and a small fee is may be charged (wiki) to get the card in some countries.

1.7 You want international bank details in major currencies: With TransferWise Borderless, you get international bank details in GBP, USD, CAD, AUD, NZD, and EUR. This means you can get paid in these currencies without being charged a currency conversion fee. This is particularly helpful if you’re a frequent traveller or a digital nomad.

TransferWise (review) is available in 59 countries and lets you transfer money to 60+ countries worldwide, which covers all major and most lesser known currencies.

If you want to check how you can use them – check out their pretty handy currency guides.

2. 8 Ways They Might Not Work

2.1 You need phone support for signing up or setting up your transfer: Plenty of people aren’t comfortable handling all aspects of money transfer online. If you need to speak to a human while setting up your account and the transfer, check out TorFX instead (See “TransferWise vs. TorFX” below). TorFX is big in UK, Europe and Asia (inc Australia, New Zealand) but not available in North America, however the next one is and also has telephone support.

2.2 You want to send large amounts: TransferWise’s whole business was originally designed around smaller transfers and part of this came a fee structure and online platform focused on this. However for large amounts, OFX is our recommended preferred option. (See “TransferWise vs OFX” below).

2.3 You need a wider selection of receiving countries: TransferWise supports currency transfers between most major countries (59 sender countries and 60+ receiving countries). But if yours is not listed and you need more options, XE supports over 170 receiving countries (See “TransferWise vs XE” below).

2.4 You want to send cash or top up a mobile wallet: TransferWise supports card-to-bank and bank-to-bank transfers. If you need more payout methods, WorldRemit may be better for you. (See “TransferWise vs WorldRemit” below).

2.5 You want the most affordable rates: TransferWise is one of the most affordable currency transfer services out there, with rates up to 8x cheaper than banks. But sometimes, CurrencyFair can get you even better rates. (See “TransferWise vs CurrencyFair” below).

2.6 You want instant transfers to friends and family only: Currently, TransferWise doesn’t support instant money transfers. If you want to send money to your family members urgently, Remitly is a great option (See “TransferWise vs Remitly” below).

2.7 You’re based in the Eurozone and need an alternative prepaid card: The MasterCard prepaid card issued with TransferWise Borderless is a great option for frequent travellers and digital nomads. But if you’re based in the Eurozone (wiki), you should check out N26’s prepaid debit card (See “TransferWise vs N26” below).

2.8 You want to send money without revealing your bank details: If you don’t want to reveal your bank details to your recipient, PayPal is a great tried and tested alternative. (See “TransferWise vs PayPal” below)

3. TransferWise Alternatives

Prefer a quick overview? Skip to “TransferWise Alternatives Snapshot” below.

1. TransferWise VS TorFX

Check out our full TorFX review here.

2. TransferWise VS OFX

Check out our full review of OFX and learn more about TransferWise vs OFX.

3. TransferWise vs XE

Check out our full review of XE and learn more about TransferWise vs XE.

4. TransferWise vs WorldRemit

Check out our full review of WorldRemit and see how TransferWise stacks up against WorldRemit in other categories here – TransferWise vs WorldRemit.

5. TransferWise vs CurrencyFair

CurrencyFair also supports registrations from and transfers to many island countries (for example, Anguilla, Aruba, Greenland, etc.), unlike TransferWise which services mostly popular currency transfer corridors.

See our full review of CurrencyFair and learn more about TransferWise vs. CurrencyFair.

6. TransferWise vs Remitly

Remitly supports bank-to-bank transfers, cash pickups, and mobile wallet transfers.

But here a few things to consider:

• Remitly exists with a unique vision – to make money transfer easy, fast, and affordable for immigrants based in developed countries.That’s why they support registrations from 16 sender countries and transfers to 50 recipient countries. And, they don’t support transfers between these 16 sender countries. (The sender countries include: UK, US, Australia, Canada, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden)
• You can only initiate personal transfers with Remitly (examples of personal transfers include utility bills, rent, medical expenses, or travel expenses).

See our full review of Remitly and learn more about Remitly vs TransferWise.

7. TransferWise vs. N26

The N26 card is not just a prepaid travel card. It’s a MasterCard debit card linked to a full-service bank account. Yep – N26 is a licensed (in Europe) digital bank and a great alternative to traditional banking for individuals and digital nomads who travel frequently or do business in multiple currencies.

Unlike N26, TransferWise Borderless is not a licensed bank and only has some banking features (such as holding multiple currencies in the multi-currency account and transferring money locally and internationally).

See our full reviews of TransferWise Borderless and N26.

8. TransferWise VS PayPal

Overall, PayPal is a great alternative for sending money to someone without revealing your bank details or asking for your recipient’s details. However, the PayPal’s fees are quite hefty (6-8% of the transfer amount) compared to other players in the market and sometimes even high street banks (who charge 3-5% of the amount).

Check out our full reviews of TransferWise and PayPal.

4. TransferWise Alternatives – Snapshot

5. Verdict

For the majority of people TransferWise is awesome and that is why we have voted it the best money transfer company for amounts below $7000 USD.

But don’t just take our word for it.

TransferWise is rated 4.6/5 on TrustPilot and even when we analyzed the negative reviews, we found that keeping the amounts below $7000 will avoid almost any potential issues.

But there are many moving parts while transferring money. And, while most services try to be comprehensive and all inclusive, it’s not always possible.

That’s why it’s important to stay in the know about each service’s strengths so you can choose the right one that speaks to your needs.

The reality is that it may make sense to use more than one service.

Happy Transfers!

8 Must Knows Before You Sign Up

Summary

• Both are very low cost
• Fundamentally differ in the way they move money, which will suit different needs better
• Both excellent for smaller transfers, but we recommend others for larger transfers

Let’s see how they stack up. 🤔

Disclosure: This post contains affiliate links which can save you money! For more information, see my disclosures here.

Jump Links

The Big Differences

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

The Big Differences

CurrencyFair and TransferWise are leading the way for smaller transfers (below $7000 USD). CurrencyFair keep fees low with its P2P (peer to peer) platform giving unrivalled control over the exchange rate while TransferWise is a leader in transparency on fees and excellent service online.

Above $7000 USD / 4000 GBP /  9500 AUD/CAD / 5000 EUR is considered a large amount and for these a provider that is designed for larger amounts is a better option. (See fees)

These fundamental differences can be explained by how they work.

How CurrencyFair Works

While most money transfer companies are happy providing a much better service that is just a fraction of the cost, CurrencyFair takes the world one step further to money nirvana.

CurrencyFair offer two low-cost ways of sending money – exchanging your currency in their P2P marketplace or processing the transaction directly when there are no peers in the pipeline. Either way, you save a bunch but using the P2P marketplace to essentially swap money safely with others. The experience is both empowering and potentially the cheapest way you will find.

It also helps that they offer Transumo users get the first 10 transfers free.

CurrencyFair (review) accepts registrations from an incredible 62 countries worldwide and lets you send money to 153 countries (See Costs and Fees” below).

How TransferWise Works

TransferWise is focused on transfers through their excellent online platform with telephone support for troubleshooting.

While they don’t offer “free transfers” they are also very transparent on fees –   So you can see exactly what you will pay using their widget here.

Guaranteed rates enable you to lock in a transfer for 24 – 48 hrs while you fund the transaction.

TransferWise also has some distinct value add with its offers a multi-currency wallet, prepaid Mastercard debit card and optional Borderless account (review). This gives you a bit more flexibility to hold, transfer, and receive money like a local providing international bank details in major currencies such as USD, CAD, GBP, EUR, AUD, and NZD.

Fees

Both TransferWise and CurrencyFair are very competitive on fees.

Both say they are “8x cheaper than banks”, but it does vary between different currencies and different amounts.

In our testing (and real life use) we found that both TransferWise and CurrencyFair are a indeed just a fraction of the costs and 8x cheaper can be achieved.

• TransferWise – 0.4% to 1%
• CurrencyFair – 0.4% to 0.6%
• Banks –3% to 7%
• PayPal – 6% to 8%
• Other International Money Transfer Companies – 0.4%-1.8%

CurrencyFair can have an edge on TransferWise with its P2P marketplace but you have to consider that in order to execute on these rates the money needs to be funded in your CurrencyFair account.

TransferWise on the other hand guarantees the transaction rates they offer, and so while they might be just slightly more expensive your money can stay in your bank account until you have the transaction locked in.

Above $7000 USD we recommend OFX (review) because of their international customer support network and fee structure which diminishes as amounts increase. Alternately TorFX (review) gets excellent reviews and is recommended if you want the ultimate in telephone support from sign up to transactions.

1. Who Can Get One?

Winner: CurrencyFair

CurrencyFair supports more countries for international transfers, including registrations from and transfers to island countries (Anguilla, Aruba, Greenland, etc.). However, they are not available in the US yet, which can be a major drawback for some users.

Overall, if you’re located in Europe, UK, and Australia and looking for low cost transfers to both major and remote regions, CurrencyFair is a great option.

TransferWise doesn’t support as many receiving countries. But they do have a well-distributed footprint in Asia, Africa and South Americas and support registrations from the US.

2. Costs and Fees (+ Hidden Fees?)

Winner: Tie

CurrencyFair is usually the most affordable option in most cases.

But CurrencyFair doesn’t operate local bank accounts in Canada or New Zealand, and a few other countries it supports registrations from.

So, while you can use the service in these countries and their fees may be lower the fees banks charge can drive up the total cost of the transfer. For smaller amounts these fees can be significant.

TransferWise also has local bank accounts in all the areas it services. This means you’ll see the exact amount you’ll pay and the amount your recipient will get on the currency convertor widget on their homepage before you initiate the transfer.

So which service is best for you? It really depends on where you’re from and which currency you want to exchange.

Once you get that down, you can’t go wrong with either service.

3. Currencies

Winner: TransferWise

While CurrencyFair has a larger base of receiving countries (153), they support fewer currencies for transfers.

That’s why TransferWise is the clear winner here, especially if you count the extra flexibility of the Borderless account.

4. Ways to Send Money

Winner: TransferWise

TransferWise offers a lot more flexibility for funding your transfers, including debit and credit card support for most countries as well as some location-specific funding methods.

5. Payout Methods

Winner: Tie

Both CurrencyFair and TransferWise support card-to-bank and bank-to-bank transfers from a number of sender countries.

So if your recipient has a bank account, you can’t go wrong with either service.

However, if quick access to cash is needed (as an expat or while travelling or send money to family), check out WorldRemit (review).

6. Transfer Speed

Winner: TransferWise

On paper there’s very little difference between the transfer speeds of both the services, but here’s why we’ve picked TransferWise.

If you choose the P2P method on CurrencyFair, currency conversion can take a couple of days (instead of being processed usually on the same day).

That said, your transfers are processed quicker on both services if you fund it with a card (card-to-bank).

If speed is a priority neither TransferWise or CurrencyFair offer instant transfers like WesternUnion or WorldRemit (review) can. But speed often does come at a cost.

7. Reviews (inc. Negative Ones)

Winner: TransferWise

Both CurrencyFair and TransferWise are excellent money transfer services in most cases. But when it comes to resolving customer issues, TransferWise has a reputation of saving the day with their fast response time.

For online-only services like these two, this can make a huge difference.

8. Customer Service and Support

Winner: TransferWise

Neither CurrencyFair not TransferWise have physical presence in the countries they operate to help folks with their transfers.

That’s why it’s so important to have a robust customer service team to reassure users. TransferWise seems to have nailed keep customer service high with costs low.

Verdict

With 4 wins for TransferWise, 1 for CurrencyFair, and 2 ties, it would be easy to say TransferWise is the winner.

But as we have shown, they are quite different and for some CurrencyFair will be the winner.

That said, I will try to make this easy!

If you’re looking for currency transfers between popular corridors, need international bank details in major currencies, and perhaps think a prepaid MasterCard is a great add on, TransferWise is a fantastic choice.

With TransferWise you can see what you will pay before you sign up using their widget and comparison tool and the currency/country guides make it easy to see if and how you can use them.

On the other hand, CurrencyFair provides a unique option with extremely low fees. For some, their P2P platform which provides more control and the best exchange rates in the industry is an excellent reason to use them. Also getting the first 10 transfers free will makes them hard to resist a trial run at the very least.

So which service is right for you?

It ultimately comes down to your unique long-term and short-term needs.

8 Must Knows Before You Sign Up

It is true, OFX and TransferWise are both great options for transferring money overseas.

Their strengths include inexpensive transfers and top ranked customer service – two very important aspects of the money transfer process.

But can you swap out one for the other? 🤔

We don’t think so.

That’s because while they do have some common features, there are some important elements that set them far apart.

In the next few minutes, you will find which one will stand out over the other for your specific needs.

Let’s get stuck into it! 

Disclosure: This post contains affiliate links which can save you money! For more information, see my disclosures here.

Jump Links

The Big Differences

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

Below these amounts is a small amount for money transfer companies.

The Big Differences

TransferWise and OFX are far cheaper than banks but stand apart. Below $7000 USD, TransferWise is hard to beat for it’s transparency and excellent service online. Above $7000 USD and OFX comes into its own with diminishing fees and a combination of online and telephone support.

Above $7000 USD / 4000 GBP /  9500 AUD/CAD / 5000 EUR is considered a large amount.

These fundamental differences can be explained by how they work.

How OFX Works

OFX enables you to send money bank-to-bank by phone or online through desktop or mobile. If you do it by phone (24/7) you will find a “dealer” who you will find is effective at answering any questions you have and ensuring everything runs smoothly.

Alternately most people do it all online and in this case you will find a simple but effective platform. Most the time you won’t test OFX’s abilities and that is a good thing.

However, especially with large amounts, occasionally extra help is needed, mostly because of the banks involved and suddenly those friendly dealers become the reason why we recommend OFX highly for larger amounts.

All this valuable human support however can come at a cost for smaller transactions and while they reduce the percentage they charge in fees as the amounts grow (see below) the $15 fixed fee is designed to cover some of the costs for smaller amounts.

This $15 though can be removed here forever on all transactions!

More about how these dealers can help is found in Customer Service and Support (below).

How TransferWise Works

TransferWise is focused on bank-to-bank transfers through their excellent online platform with telephone support for troubleshooting. Ridiculous transparency on their low fees where you can see exactly what you will pay using their widget here before you set up a transfer, in combination with great customer service makes them a highly recommended for smaller amounts.

They also have a modern and seamless online experience which makes everything from sign-up to transfers including regular email notifications a joy to use.

Fees

Both TransferWise and OFX are very competitive on fees. TransferWise says it is up to 8x cheaper than banks, but it does vary between different currencies and different amounts.

In our testing (and real life use) we found that both TransferWise and OFX are a indeed just a fraction of the costs.

• TransferWise – 0.4% to 1%
• OFX – 0.4% to 2%
• Banks –3% to 7%
• PayPal – 6% to 8%
• Other International Money Transfer Companies – 0.4%-1.8%

TransferWise has an edge on OFX for smaller amounts where OFX charges a little more, but for larger amounts OFX comes into it own as they reduce the percentage they charge in fees as amounts increase. Above $7000 USD we recommend OFX because of their international customer support network.

Other Cool Stuff

TransferWise also offers a multi-currency wallet and a prepaid Mastercard debit card when you sign up for TransferWise Borderless (review). This gives you a bit more flexibility to hold, transfer, and receive money like a local.

Plus, with a Borderless account, you also get international bank details in major currencies such as USD, CAD, GBP, EUR, AUD, and NZD.

We have slightly different recommendations to this video as you will see, but it does provide great overall information. Both companies are also regulated and operate throughout the world including the US, Canada, UK, Singapore, and Hong Kong, Australia and New Zealand.

1. Who Can Get One?

Winner: Tie

TransferWise is widely available (more sender countries) while OFX supports more receiver countries.

So which among the two is right for you?

It comes down to where you’re located, where you want to send money, and how much money you want to send (The next section will make it clearer for you).

2. Costs and Fees (+ Hidden Fees?)

Winner: Tie (depends on your needs)

TransferWise is the most affordable option of the two in most cases if you transfer smaller amounts. With no minimum amount and very low transparent fees.

On the other hand, while OFX can transfer smaller amounts (minimum $1000) much cheaper than a bank, it is designed for sending large amounts ($7,000 USD and above) with no transfer fees over $10,000 and diminishing margins on the exchange rate as amounts grow.

Hidden Fees

Some money transfer companies are not great at helping you to avoid some rather steep and often unexpected fees that the banks at either end of the transaction can charge.

However, one of the reasons we recommend both TransferWise and OFX is because they are dedicated to having local bank accounts in all the areas they service. This means they can often reduce these fees to zero or very low.

Transfers funded by a credit card on TransferWise do cost a bit more, but these fees are built into the total fees charged by the service. In fact, you’ll see the total amount your recipient will get before you initiate the transfer.

Overall, both services strive to be awesome in every way and fees is no exception.

You might also like TransferWise VS CurrencyFair if smaller transfers are all you are planning to do and you want the absolute lowest cost service.

3. Currencies

Winner: OFX

Both OFX and TransferWise are at par here, with minor differences.

But OFX does support more receiver countries, which makes it a winner in this category.

4. Ways to Send Money

Winner: TransferWise

TransferWise offers a lot of flexibility for funding your transfers.

While funding with a card can be more expensive on TransferWise (compared to a bank direct debit), they manage to keep the fees low by not charging a margin on the exchange rate.

5. Payout Methods

Winner: Tie

If your recipient has a bank account, you can’t go wrong with either OFX or TransferWise.

But if you’re looking for cash pickup and other payout methods, check out WorldRemit (review).

6. Transfer Speed

Winner: Tie

Both OFX and TransferWise are strong performers when it comes to bank-to-bank transfers.

TransferWise however does allow you to use a credit or debit card to fund the transaction, which while coming at an additional cost, does mean you can save a day or two.

The reality of bank-to-bank transfers is that the time taken by the banks at either end is far more significant than the time it usually takes to convert your money.

In both cases they usually will not be holding your money for more than a day.

For example, TransferWise says, “Every currency and country is different. Converting your money can take a maximum of 2 working days, but it’s very rare that it takes this long.”

In our experience, both take a day or less (often just hours) to make the exchange which is no doubt helped by the significant volumes they both do in major currencies. For smaller currencies/countries you may find they need a little more time is needed.

Neither OFX nor TransferWise offer instant transfers like WesternUnion or WorldRemit (review).

You might also like TransferWise VS PayPal to see how PayPal compares.

7. Reviews (inc. Negative Ones)

Winner: Tie

Here is what really matters.

Relative to their competitors, both OFX and TransferWise are both great examples of keeping issues to a minimum and having a customer-centric approach to solving problems.

While regulation is mostly a good thing, it can cause unexpected delays, but this is the same with any money transfer service. The key here is you don’t have to worry if you hit a bump in the road.

8. Customer Service and Support

Winner: OFX

While both services are known for excellent customer service, OFX has the leg up here for providing phone support to their users while setting up transfers.

This can be particularly useful to folks who don’t want to handle everything online. It also means for larger transfers they are our top pick because dealing with a real human often ensures smooth transfers.

On the other hand, we recommend TransferWise for smaller transfers because it keeps its costs lower and online platform is usually more efficient for smaller transfers.

If you want to do everything by telephone however TorFX (review) is well worth a look.

Verdict

With 6 ties, 1 win for OFX, and 1 for TransferWise, it’s safe to say that both are stellar currency transfer providers. Truthfully you will be hard pressed to beat either of these.

But there can be only one winner!

And there is, but it comes down to the amount you want to send.

In short, OFX provides the confidence needed (see reviews above) for large transfers but the online platform of TransferWise and it’s wonderful transparency on fees and notifications makes them a joy to use otherwise.

Use OFX (less the $15 fee)  for amounts above $7000 USD / 4000 GBP /  9500 AUD/CAD / 5000 EUR or compare the fees for TransferWise below $7000 USD.

Fees are also an important factor of course.

OFX helps you save big on larger transfers ($10,000 USD and above) while TransferWise is ideal for you if you need to frequently send smaller amounts ($7,000 USD and below).

TransferWise also has the added advantage of setting you up with a multi-currency wallet and a pre-paid MasterCard debit card when you sign up for TransferWise Borderless (a no brainer if you’re an expat, long term traveller, or have do business overseas).

So which service is best for you ultimately comes down to your specific needs.

In reality, you might want to open an account with both and simply use the service right for the amount you want to send.

That is what we do.

Happy Transfers!

9 Things You Need to Know – Only One Greatest!

WesternUnion and TransferWise are money transfer heavyweights.

This is Old VS New, like new age Muhammad Ali VS Manny Pacquiao.

WesternUnion is the original great who has evolved and TransferWise is the much younger and potentially much better service.

Or is it?

In the next few minutes, the important thing is you will know which one is best for you!

On the surface both are greats: including wide availability, fast currency transfers, and helpful extras that make managing your money transfers easier.

But that is not all. 🙂

In this article, we uncover all the important aspects of money transfers so you can see how these two services stack up in each of 9 categories.

To help, we award a winner in each of 9 important categories, so you can see what works best for you. (Look for the “Winner” in each category and don’t miss our verdict (below))

Let’s dive in.

Disclosure: This post contains affiliate links. For more information, see my disclosures here.

Jump Links

The Big Difference

1. Who Can Get One?
2. Transfer Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Cards & Fees
5. Ways to Send Money
6. Payout Methods
7. Transfer Speed
8. Customer Service and Support
9. Reviews (inc. Negative Ones)

Verdict

In the video, they looked at XE (review) and OFX (review) which we also like but for different reasons. OFX for example is better for larger amounts and XE is multilingual and has fantastic support in the USA, Canada, UK and Australia.

The Big Difference

Both WesternUnion and TransferWise are focused on international transfers with some very useful additions like prepaid Mastercards and fast transfer options. TransferWise is focused on online, inexpensive and insanely transparent fees to banks while WesternUnion enables extreme flexibility for funding transactions and cash pickup.

You can see the total fees for TransferWise (new tab) without even signing up.

Incredibly, WesternUnion (wiki history) was established in 1851 as a telegram company, but has transformed into a modern trusted currency exchange and international money transfer company.

They are available in 70 countries and support transfers to 200 countries worldwide with a wide variety of funding and payout methods.

With WesternUnion, you can transfer money online, via an app, at an agent location, or via a phone call. These flexible options attract folks who are not comfortable (or can’t) do business online.

WesternUnion does offers some helpful extras such as their “Netspend” PrePaid Card (powered by MasterCard or Visa, depending on the country), and even bill payment.

In many ways, WesternUnion has had to evolve fast to keep up with companies like TransferWise while sticking to their strengths like physical agents.

TransferWise (review) was founded in 2010 and have quickly climbed the ranks to become a leader for very good reason.

They offer local and international money transfers with a generally far lower, transparent fee structure backed by excellent customer service which  keeps their customers coming back.

TransferWise is available in 50+ countries and offers currency transfers to 60+ countries worldwide (bank to bank transfers).

TransferWise has also designed a complementary service – TransferWise Borderless (review) – which equips users with a multi-currency account and local bank details to accept, hold and exchange major currencies like USD, CAD, GBP, EUR, AUD, and NZD. The Borderless account can be a game changer for some people making it easy to send and receive money like a local without restrictive currency conversion fees.

When you sign up for the Borderless account, you also get a MasterCard debit card that’s great to travel with.

1. Who Can Get One?

Winner: WesternUnion

WesternUnion is the oldest currency transfer company and has a wide reach. They not only have an established presence online but they’re also available in 500,000 physical locations (agent offices, pick up points, etc.) around the world.

2. Costs and Fees (+ Hidden Fees?)

Winner: TransferWise

TransferWise is known for their low and transparent fee structure which you can see using their widget. You’ll know the exact amount you’ll pay and your recipient will get on the currency conversion widget on their home page.

Hidden fees

As we saw, with the margin on the exchange rate and fees varying according to transfer speed, payout method, and currency corridor, WesternUnion is rarely the cheapest option for international transfers.

Plus, if you’re funding your transfer from a bank account and the recipient opts to receive in their bank account, banks at either end may charge fees.

On TransferWise, you’ll never face these additional deductions because they have bank details in all the areas they support.

3. Currencies

Winner: WesternUnion

Although TransferWise covers most major and some regulated currencies, WesternUnion’s supported currency base is much larger.

4. Cards and Fees

Winner: TransferWise

The TransferWise card (review) is widely available and the features are standardized for all regions.

While you can’t receive your salary directly on the card or set up direct debits, the simplicity of use makes it a nice add on for your TransferWise account (especially if you’re frequent traveller or a digital nomad).

Plus, there are no monthly fees, account inactivity fees and a slew of other charges to worry about.

5. Ways to Send Money

Winner: Tie

Both WesternUnion and TransferWise offer a lot of flexibility for funding your transfer, so you can’t go wrong with either.

6. Payout Methods

Winner: WesternUnion

TransferWise is a great option if your recipient has a bank account.

However, if your recipient doesn’t have a local bank account (for example, if they are an expat or a frequent traveller), WesternUnion can save the day.

7. Transfer Speed

Winner: WesternUnion

WesternUnion offers a lot of options to choose a transfer speed, depending on your specific needs.

In case of an emergency, you can always send money to friends and family in minutes. The premium for that is well worth it.

But if you can wait a couple of days and your recipient doesn’t necessarily need cash pick up, we recommend opting for TransferWise instead of a bank transfer through WesternUnion.

8. Customer Support

Winner: Tie

WesternUnion is known for being super helpful if you need support while setting up a transfer.

However, they can be a little hard to reach on the phone if there’s a transfer hold up with your transfer. In such cases, you can always walk into your nearby agent office for clarifications (keep your tracking number handy).

While TransferWise doesn’t have agent offices in physical locations, they have an extensive FAQs section. Plus, their customer service team is super helpful if you’re ever in a jam.

9. Review (Incl. Negative Reviews)

Winner: TransferWise

With 10% of users having a bad experience on WesternUnion and 3% for TransferWise we have to give this to TransferWise.

Verdict

TransferWise – if it can do what you want.

With 3 wins for WesternUnion, 3 wins for TransferWise, and 3 ties, it’s safe to say that both WesternUnion and TransferWise have their advantages.

If cash pickups and instant transfers are not a requirement, you stand to save big on fees and have a great experience with TransferWise.

However WesternUnion with it’s large base of sender and receiver countries, super flexible funding and payout methods (above) may make them the right choice for you. If you’re OK with paying a premium for all that, you can’t go wrong with WesternUnion.

However if low costs and cash pickup are needed, you may also want to check out WorldRemit (review) which is a combination of TransferWise smarts and WesterUnion flexibility.

So which service is best for you? It ultimately comes down to your unique needs and preferences.

Happy Transfers!

8 Things You Need to Know – Only One Winner!

Both Remitly and TransferWise are great options for transferring money internationally.

Their strengths include low cost and fast money transfers to many countries worldwide.

However, they are quite different and which option is best for YOU will depend on your specific needs and what they provide.

But wait there’s more 🙂

To help, we award a winner in each of 8 important categories, so you can see what works best for you. (Look for the “Winner” in each category and don’t miss our verdict)

Possibly more importantly sometimes neither is best and we will steer you in the right direction if this is the case!

Let’s dive in!

Disclosure: This post contains affiliate links. For more information, see my disclosures here.

Jump Links

The Big Difference

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

The Big Differences

Well done on comparing these two!

At a glance, it may seem like Remitly and TransferWise offer the same services: international money transfer at really low costs.

Both are excellent when it comes to taking away business from the banks by making it far cheaper and much more user friendly. TransferWise is fabulously transparent on it’s fees and focuses on inexpensive bank-to-bank transfers while Remitly is all about helping immigrants send money home where cash or prepaid mobile top ups can be important.

More on their fundamental differences in a moment!

Don’t miss: “Where Neither is Best” section below.

Designed for immigrants, Remitly is available in 16 developed countries and supports transfers to 50 countries worldwide. You can sign up for Remitly ONLY from the UK, US, Australia, Canada, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden. With Remitly you can see what you will pay (desktop) or get the App for mobile – iOS or Android.

Remitly support personal transfers back home to family and friends, unlike TransferWise, who also offers dedicated business accounts.

TransferWise is far more flexible: allowing users to sign up from 59 countries and send money to 60+ countries worldwide. For TransferWise you can see exactly what you will pay in fees with this widget.

If you can still use either more, in-depth comparisons are needed starting with their Pros and Cons.

Also pay particular attention to their fees as they show them quite differently.

Where Neither is Best

Money transfers above $7000 USD/ 4500 GBP other services tend to be even cheaper and have better important customer service for larger amounts. OFX (review) (Worldwide) and TorFX (review) (Australasia & Europe) reduce the fees in percentage terms as the amounts rise.

To decide between the two: OFX balances online with telephone support while TorFX focuses on telephone service mostly.

1. Who Can Get One?

Winner: TransferWise

TransferWise is widely available and supports more sender and receiving countries than Remitly. Moreover, they allow both personal and business transfers (dedicated business accounts available).

2. Costs and Fees (+ Hidden Fees?)

Winner: TransferWise

TransferWise lets you move funds with a low and transparent fee structure at the mid-market rate. You will see the total fee you’ll pay before you initiate a transfer, so there are no surprises.

Hidden fees

Transfers funded with credit cards on Remitly attract additional charges. Moreover, when you choose the Economy plan, banks at either end may charge fees.

There are no hidden fees on TransferWise. Although transfers funded from a bank account may cost more, you’ll see the total amount you’ll pay before you hit “Send.” Plus, TransferWise has bank details in all the countries it supports, so there are no unexpected deductions.

3. Currencies

Winner: Tie

Both Remitly and TransferWise support 40+ currencies to be sent to 50+ countries, which covers most of the major as well as some regulated currencies.

4. Ways to Send Money

Winner: Tie

Both TransferWise and Remitly support the most common (credit card, debit card, bank transfers) as well as some location-specific methods to fund your transfer for maximum flexibility.

5. Payout Methods

Winner: Remitly

Remitly wins this round hands down with the wide variety of payment methods. If you’re located in one of the 16 sender countries supported by Remitly and want to send money to the 50+ receiving countries serviced by them, Remitly is a no brainer.

6. Transfer Speed

Winner: Remitly

Remitly has an instant transfer option with a 100% satisfaction guarantee clause if you need to send large funds urgently to your family. And, Remitly’s Economy plan can save you a lot of money if you can wait a couple of days.

If large and urgent transfers are not a priority, TransferWise can help you win the day and save some money on both personal and business transfers.

7. Reviews (inc. Negative Ones)

Winner: Tie

Both Remitly and TransferWise are excellent service providers who make international transfers fast, easy, and cheap for their users.

In most cases, the expectation mismatch can be avoided by being clear on their scope of service. And, we’re confident you’re unlikely to face any such issues if you’ve come this far in this article.

8. Customer Service and Support

Winner: TransferWise

While both services can be reached in a number of ways, TransferWise has been known to be super responsive when their customers reach out to them during an emergency. This goes a long way to reassure confused users and earn back their trust.

Verdict

TransferWise!

If you could use either TransferWise is our recommendation (especially when you can use this widget), but Remitly may be your best choice if you need cash pick up or faster transfers.

For Remitly you can see what you will pay (desktop) or get the App for mobile – iOS or Android.

Looking at the scorecard: Remitly has 2 wins, TransferWise has 3, and they are tied in 4 categories. It’s safe to say both TransferWise and Remitly can hold their own when it comes to international money transfers. But the way negative reviews are handled (above) speaks loudly.

Slightly slower bank-to-bank or card-to-bank transfers and superior transparency on fees (and Remity is pretty good) makes TransferWise a deal maker. TransferWise also scores highly because of the optional Borderless account and prepaid Mastercard.

But Remitly’s one-of-a-kind mission of making currency transfers fast, easy, and affordable makes them uniquely awesome for immigrants.

TransferWise, on the other hand, is a well rounded service for smaller transfers for pretty much everyone. They have a transparent fee structure, are available in most countries, and good for both personal and business transfers.

So which service is best for you?

It all comes down to your unique needs – such as location, supported currencies, and type of transaction you want to process on a regular basis.

Happy Transfers!

8 Things You Must Know – Only One Winner

TransferWise and XE are trailblazers for international money transfers.

Their strengths include easy and low-cost money transfer to pretty much anywhere in the world.

But here’s the thing: WorldRemit and Remitly despite the similarities are clearly better than the other in the eight all important categories we identified.

The best option for YOU will depend on your specific needs.

Here is a time saver!

To help, at the end of each section we award a winner in each of 8 important categories. (See Winner)

Even better 🙂

These are not the best options in every situation and we will suggest alternatives where it makes sense!

Let’s get stuck into it.

Disclosure: This post contains affiliate links. For more information, see my disclosures here.

Both TransferWise and XE offer exclusive accounts for business transfers. But for this article we’re only considering the personal accounts.

Jump Links

The Big Differences

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Currencies
4. Ways to Send Money
5. Payout Methods
6. Transfer Speed
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

The Big Differences

It may seem like TransferWise and XE money transfers are fundamentally similar services – international money transfer at affordable rates.

But there are many moving parts when you transfer money overseas (for example – how you fund your account, where you’re located, which currency you’re transferring, the payout method, etc. ) and how a service provider is structured to handle these makes a huge difference in actual amounts transferred as well as the transfer experience.

We make it simple!

In a nutshell: Both are first rate – especially in the customer service department and keeping fees low. TransferWise is super transparent on fees, has more funding methods and an extensive local bank account network. Meanwhile XE handles 170 currencies with English, Spanish and French telephone support.

Also don’t miss: “Where Neither is Best” below in this section (especially when it comes to larger transfers).

With TransferWise one reason we awarded it the best “Money Transfer Company for amounts under $7000 USD/ £4500 GBP/ ” is it’s ridiculous transparency on fees (click to see) you can see up front before you transact.

XE money transfers meanwhile enables you to set up transfers to over 170 countries in 60+ currencies so for travellers or digital nomads it may be a better choice.

TransferWise does however have the game changing Borderless account (review) which gives you things like a pre-paid visa card and the ability to be paid in different currencies using local bank account details. With TransferWise you can also send money from 59 countries to 60+ countries worldwide.

Cut to the chase with our XE (review), or TransferWise (review) if you think you already have a winner but want to see what we really think!

Still not 100% – no worries, you will be soon!

Where Neither is Best

Money transfers above $7000 USD/ £4500 GBP/ €4500 EUR other services tend to reduce fees in percentage terms as amounts rise and most importantly have excellent customer service for larger amounts. OFX (review) (Worldwide) and TorFX (review) (Australasia & Europe) reduce the fees in percentage terms as the amounts rise.

To decide between the two: OFX balances online with telephone support while TorFX focuses on telephone service mostly.

1. Who Can Get One?

Winner: Tie

TransferWise is available in many regions that XE is not, but their sending regions are limited compared to XE.

And, while you can’t sign up for XE in many countries that TransferWise services, XE supports money transfers to many sending countries that TransferWise doesn’t cover.

So, in this case, it all comes down to where you’re located and where you want to send money.

2. Costs and Fees (+ Hidden Fees?)

Winner: TransferWise

TransferWise has a low, transparent fee structure so you exactly know what fees you’ll pay and the amount your recipient will get. The currency convertor widget on their homepage gives you an exact break down of the total fees. Plus they have local bank details in all the areas they operate you never have to worry about unexpected deductions.

Hidden fees

There are no hidden fees on TransferWise. Although card transfers may cost more than bank transfers, the total fee is displayed before you initiate a transfer.

While XE doesn’t technically charge a transfer fee, the margin on the exchange rate and bank fees at either end often drive up the cost of the transfer. Most users overlook this little detail and end up being disappointed.

But hey, if you want to make the most of what each service offers, here’s our advice:

TransferWise’s low and transparent fee structure makes it cheaper for smaller transfers (less than USD 100) while XE’s service may be ideal for larger transfers (above USD 1000) as their margin reduces when the transfer amount goes up.

3. Currencies

Winner: XE

XE seems to be the hands down winner here with transfers to 170 countries in 60+ currencies. Even regulated currencies like CNY, which TransferWise only supports for local transfers, can be easily exchanged with XE.

TransferWise borderless solves this issue to an extent, especially if you’re a digital nomad or travel frequently.

4. Ways to Send Money

Winner: TransferWise

TransferWise supports many ways to fund a transfer, which offers a lot of flexibility to their users. Funding methods also affect the transfer speed (See “Transfer Speed” below) and the total transfer fee (as discussed above in “Costs and fees”).

5. Payout Methods

Winner: Tie

If your recipient has a bank account, you can’t go wrong with either TransferWise or XE.

Alternatives

But if you’re looking for other perks like cash pick up or mobile wallet transfers, check out WorldRemit (link to review) or Remitly (link to review).

6. Transfer Speed

Winner: Tie

Both TransferWise and XE try to process their payments fast, usually on the same day. Although TransferWise has a near-instant payment option when transfers are funded with a credit card, the higher costs (credit card charges) can discourage users from choosing this option.

7. Reviews (inc. Negative Ones)

Winner: TransferWise

Some rare bottlenecks aside, it’s usually a breeze to transfer money with either TransferWise or XE. And unlike most of their competitors, their customer service teams are always helpful if you happen to get stuck at any stage.

We did award TransferWise a winner in this category due to its extensive local bank account network which apart from reducing frustration – lowers the often hidden costs.

8. Customer Service and Support

Winner: Tie

Both TransferWise and XE are known for providing excellent support to their customers in need.

TransferWise has it all – mail, live chat, phone, and a comprehensive FAQs section. XE, on the other hand, has a helpful customer service team who are quick to assist users over email and phone, which is pretty rare in the industry.

Verdict

TransferWise! Just…

With 5 ties, 2 wins for TransferWise, and 1 win for XE, it’s safe to say that both services are excellent options for international transfers.

TransferWise has a transparent fee structure and is available in most countries. Don’t forget, with TransferWise Borderless (optional), you can get even more currencies to trade and transfer, locally and internationally (as well as a pretty sweet Mastercard debit card that is great for travelling and paying for stuff online).

See the latest for TransferWise and get the fees you pay upfront (Usually works out to less than 1%).

However XE goes further when it comes to worldwide coverage for money transfers. This is backed up by excellent customer service and multilingual support.

At the end of the day, which service is best for you may ultimately comes down to your needs, specifically – where you’re located and which currency pair you want to exchange.

Happy Transfers!

8 Things You Need to Know – Only One Winner!

WorldRemit and Remitly are both big players for international money transfers.

Their strengths include fast transfers at bank beating rates to a large number of countries with a variety of payout methods.

But here’s the thing: WorldRemit and Remitly suit different folks better. The best option for YOU will depend on your specific needs and what they provide.

But wait there’s more 🙂

To help, we award a winner in each of 8 important categories. (See Winner)

These are not the best options in every situation and we will suggest alternatives where it makes sense!

Let’s get stuck into it.

Disclosure: This post contains affiliate links. For more information, see my disclosures here.

Jump Links

The Big Difference

1. Who Can Get One?
2. Costs and Fees (+ Hidden Fees?)
3. Supported Currencies
4. Ways to Send Money
5. Payout Method
6. Transfer Speeds
7. Reviews (inc. Negative Ones)
8. Customer Service and Support

Verdict

The Big Differences

At a glance, it may seem like WorldRemit and Remitly offer the same service – fast international money transfers at low cost.

While they offer many of the same services, the big differentiator is the folks they serve.

In a nutshell: Both are leaders when it comes to smaller amounts including bank transfers, mobile wallet transfers and cash pick up. Remitly offers home delivery while WorldRemit offers prepaid mobile top ups. WorldRemit offers slightly better fees and also offers a business option.

Don’t miss: “Where Neither is Best” section below

With WorldRemit in your country you can also get the the first 3 transfers free (using the code ‘3FREE‘ until 30th November 2020).

Meanwhile Remitly has a you can see what you will pay on desktop or get the App for mobile – iOS or Android.

WorldRemit (review) is focused on making international money transfers fast, easy and flexible at bank-beating rates for everyone in the 44 sender countries they support. And, they let you transfer money for both personal and business (offers a dedicated business account) purposes to 150 countries.

Remitly (review) you can send money fast and affordably from the following 16 countries – UK, US, Australia, Canada, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden to family and friends in 50 countries.

Where Neither is Best

Money transfers above $7000 USD/ 4500 GBP other services tend to be even cheaper and have better important customer service for larger amounts. OFX (review) (Worldwide) and TorFX (review) (Australasia & Europe) reduce the fees in percentage terms as the amounts rise.

To decide between the two: OFX balances online with telephone support while TorFX focuses on telephone service mostly.

1. Who Can Get One?

Winner: WorldRemit

If you want to send money internationally to cover both personal and business expenses, WorldRemit is the clear winner. They have wide coverage and no limitations on sending money between supported areas.

2. Costs and Fees (+ Hidden Fees)

Winner: Tie

Exchange rates offered by both services are higher than the interbank rate. Rest assured when you add the transfer fees and the margin on the exchange rate, the total cost of transfer turns out to be much lower than the fess charged by high street banks.

Here’s something else to consider: WorldRemit charges lower fees on exchange rate margin but the fixed fees go up as the amount increases. Remitly’s fixed fees can be expensive for smaller amounts, so if you have a similar amount that you want to send each time use the links at the bottom (for a discount) and compare.

It can boil down to your needs, the amount you’re transferring, and where you’re located.

Hidden fees

Both WorldRemit and Remitly charge additional fees if the transfer is funded with a credit or debit card. Plus banks at either end can charge processing fees when your remittance is funded by a bank transfer and you’re transferring money to a recipient’s bank account.

Some countries can also levy taxes if you’re sending money to a mobile wallet with WorldRemit or Remitly.

3. Currencies

Winner: WorldRemit

WorldRemit wins this round by sheer numbers. Also, WorldRemit lets you transfer funds to cover both personal and business expenses.

4. Ways to Send Money

Winner: Tie

Both WorldRemit and Remitly offer a number of ways to fund your transfers. Funding with a credit or debit card usually ensures lightning-fast transfers with either service. Bank transfers are relatively less expensive and transfers can take a couple of days.

5. Payout Methods

Winner: Tie

Both services offer a lot of flexibility for receiving money. But just to be sure, always double check the supported methods in your target destination to avoid hold ups.

6. Transfer Speed

Winner: Remitly

You can send money in minutes with both services, which is awesome.

But with Remitly’s economy plan, you’re likely to save big on large transfers (zero fees for over USD 1000 in some countries) whereas WorldRemits fees increase with the transfer amount. Plus, Remitly’s 100% satisfaction guarantee and active tracking feature make transfers hassle free.

7. Reviews (incl. Negative Reviews)

Winner: Tie

One-off incidents aside, WorldRemit and Remitly are both excellent service providers.

As registered and licensed providers, WorldRemit and Remitly (as well as their partners such as local banks) need to audit transfers regularly to ensure compliance.

This is common practice in the industry to keep illegal activities in check. Also, we’re confident that after going through this article, you can easily steer clear of potential pitfalls.

8. Customer Service and Support

Winner: Tie

Both WorldRemit and Remitly have robust Help sections so that their users can have a seamless money transfer experience. However, it would appear their customer service could be more supportive and transparent during distress calls.

Verdict

WorldRemit!

With 2 wins for WorldRemit, 1 for Remitly, and 5 ties, you can be sure that both services will match and (or even exceed) your expectations.

Remitly offers fast and cheap money transfers to immigrants in the 16 developed countries they service. By niching down and limiting their scope to personal transfers only, they’re attracting more people who identify with their vision, which is a great way to stand out in a saturated space.

You can see what you will pay (desktop) or get the App for mobile – iOS or Android.

WorldRemit, on the other hand, stands out by supporting international and local transfers in 100+ currencies to 150 countries around the world. They also offer dedicated business accounts, which compounds the scope of their service.

WorldRemit is also usually a slightly cheaper option, but both are excellent options for against banks and the older often much more expensive options like Western Union and Moneygram.

If WorldRemit is your best choice, you can reduce costs by using this and ‘3FREE‘ until 30th November 2020.

But of course, which one is best for you ultimately depends on your needs and other important considerations like your location, target currency, and transfer amount.

Happy Transfers!