Remitly vs. Western Union: A Detailed Comparison for 2025

In today’s interconnected world, sending money across borders is a lifeline for millions. Whether it’s helping family members, paying for services, or managing international business transactions, choosing the right money transfer service is essential. Remitly and Western Union are two of the most popular choices, each offering distinct features. But how do they compare when it comes to fees, transfer times, global reach, and overall usability? Let’s break it down and help you make a well-informed decision.

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Fee Comparison: Remitly vs. Western Union

Cost is one of the most important factors when choosing a money transfer service. Here’s how Remitly and Western Union compare:

Remitly

Remitly offers a transparent fee structure based on:

• Transfer Amount: Larger sums usually result in higher fees.
• Location: Fees vary depending on the sending and receiving countries, especially when currency conversion is needed.
• Receiving Method: Cash pickups and bank deposits often have different fees.
• Payment Method: Credit card payments usually cost more than bank transfers or direct debits.

To calculate exact costs for your transfer, check Remitly’s website, as fees depend on the specific countries involved. New users may also benefit from promotional offers for certain transfers.

Western Union 

Western Union’s fee structure is more complex and sometimes less transparent. Fees depend on:

• Transfer Method: Options include cash, bank deposits, or card payments.
• Destination: The receiving country affects the cost.
• Transfer Amount: Larger amounts may lead to higher fees.

For example, sending $200 via bank transfer might cost $5.99, while using a credit card could increase fees to $12.50. Although Western Union offers some no-fee options, their exchange rates tend to be less favorable, and overall fees tend to be higher—especially for credit card payments. Always review the total cost carefully before sending, as fees may vary between online and in-person transfers.

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Key Difference: Exchange Rates

Exchange rates usually impact the total cost of transferring money, and this is where Remitly and Western Union show differences. 

Remitly 
Remitly charges a smaller markup on exchange rates, typically around 1-2%. This makes it a cost-effective choice for transfers. 

Western Union 
Western Union typically adds a higher markup, usually ranging from 2-4%. Over time, this can result in higher costs, particularly for larger transfers.

For the best value, Remitly’s Economy transfers often provide a more favorable deal than Western Union’s options.

Global Reach: Coverage and Availability

When it comes to global coverage, Western Union has a clear edge.

Western Union

• Operates in over 200 countries and territories. 
• Features a vast network of 500,000+ retail agents worldwide, especially useful in areas with limited digital banking infrastructure.

Remitly

• Covers 170+ countries, focusing on high-demand remittance corridors like India, the Philippines, Kenya, and Nigeria.
• Excels in providing digital convenience for countries with strong mobile banking and wallet services.

For transfers to regions like Africa, Western Union’s extensive physical presence offers an advantage, especially in regions with underdeveloped banking systems. However, Remitly shines in its ability to facilitate digital transfer, making it a more modern and convenient choice for users in tech-enabled regions.

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Withdrawal Options

Both Remitly and Western Union offer multiple ways for recipients to access their funds, catering to diverse needs and preferences.

Remitly

• Bank Deposits: Transfers are sent directly to the recipient’s bank account.
• Cash Pickup: Available at partner locations globally, allowing for in-person withdrawals and home delivery.
• Mobile Wallets: Works seamlessly with platforms like M-Pesa in Kenya, offering convenience for recipients without bank accounts.

Western Union

• Cash Pickup: With an unmatched agent network, Western Union provides instant funds access in almost any location.
• Bank Deposits: Reliable for direct transfers to bank accounts.
• Mobile Wallets and Prepaid Cards: Available in select regions, offering added flexibility for recipients.

If cash pickups are a priority, Western Union’s extensive network is hard to beat. However, for digital transfers or mobile wallet compatibility, Remitly offers a smoother, more modern experience.

Transfer Speed

How fast money reaches the recipient depends on the provider and the chosen method.

Remitly

• Express Transfers: Money arrives within minutes, ideal for urgent transactions.
• Economy Transfers: Take 3-5 business days but come with lower fees, making it a budget friendly option.

Western Union

• Cash Pickup: Transfers are typically available instantly, making it perfect for emergencies if the recipient lives near a cash collection point.
• Bank Transfers: Usually take 1-3 business days, depending on the destination country.

For those requiring immediate cash access, Western Union’s instant pickup services stand out. However, Remitly’s flexible options allow you to balance speed and cost depending on your needs.

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KYC and Legal Requirements

Both Remitly and Western Union follow strict Know Your Customer (KYC) guidelines to comply with international financial regulations and ensure secure transactions.

Remitly

• Requires a government-issued ID for larger transfers or new accounts.
• Offers a secure platform for verification, with quick and efficient approval processes.

Western Union

• Also requires ID verification for large transactions or first-time users.
• Provides the option for agent-assisted verification, which is particularly useful for those without digital access.

While these processes may seem tedious, they are essential for ensuring safety, compliance, and fraud prevention in global money transfers.

Exchange Rates and Hidden Costs

Exchange rates and hidden costs can significantly affect the value of a money transfer. Here’s how Remitly and Western Union compare:

Remitly

• Applies a 1-2% markup on exchange rates, making it a competitive option for sending money abroad. 
• Expect better rates on amounts under $500.

Western Union

• Adds a 2-4% markup to exchange rates, which can result in lower payouts for recipients, especially on larger transfers.
• Additional fees, such as up to $25 for credit card payments, can further increase the overall cost.

For example, here’s what sending $1,000 to Nigeria might look like:

• Remitly: The recipient might receive around 1,620,000 NGN after fees and rate adjustments. If it’s your first transfer, you might receive a more profitable promotional rate. 
• Western Union: The recipient could get between 1,540,000 NGN and 1,600,000 NGN, with added fees for certain payment methods. 

User Experience and Digital Tools

Both Remitly and Western Union provide user-friendly platforms, but their features cater to slightly different audiences.

Remitly

• Prioritizes simplicity, making it ideal for first-time users.
• Offers real-time transfer tracking and a clean, intuitive interface.

Western Union

• Provides helpful features like transaction history and loyalty rewards, which are useful for frequent users.
• Offers a more feature-rich experience for those who regularly send money and need additional tools to manage their transfers.

For casual users seeking a straightforward experience, Remitly is the better option. On the other hand, Western Union’s platform is more comprehensive for regular senders who value extra features and tracking tools.

Africa-Specific Insights

Both Remitly and Western Union have tailored their services for the African market, a major destination for remittances.

Remitly

• Express Transfers: Start at $3.99 for Kenya or Nigeria, with exchange rates generally more favorable than those offered by Western Union. Up to 3% might be applied to credit card payments.
• Economy Transfers: Free but slower, making them ideal for those who aren’t in a rush.

Western Union

• Cash Pickups: With its widespread network of agent locations, Western Union excels in countries like Ghana, where access to banking services may be limited.
• Prepaid Cards: Available in certain regions, giving recipients added flexibility.

For countries with strong digital infrastructure, Remitly offers a modern and efficient option. In contrast, Western Union’s extensive physical presence makes it the go-to choice in regions where cash pickups are essential.

Why Staying in Touch Important: Yolla’s Role

While sending money is vital, maintaining regular communication with loved ones is equally important. Hearing a familiar voice can provide comfort and strengthen emotional bonds, especially when separated by long distances. That’s where Yolla comes in.

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• Affordable International Calls: Calls to Africa start at just $0.04 per minute, far cheaper than traditional carriers.
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While you’re sending money, don’t forget to make a call—sometimes, hearing a loved one’s voice is just as comforting as the funds themselves.

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What’s Better In The End?

Both Remitly and Western Union have their unique strengths, and the best choice depends on your specific needs.

Choose Remitly if you value:

• Transparent pricing and lower fees.
• Competitive exchange rates with minimal markups.
• An easy-to-use platform.

Opt for Western Union if you prioritize:

• Instant cash pickups through its unmatched global network.
• Extensive physical coverage in over 200 countries.
• Advanced tools for frequent senders.

Remitly vs. Western Union: Summary Table

Feature	Remitly	Western Union
Fee Transparency	Clear and predictable fees.	Less transparent.
Exchange Rate Markup	1-2%, competitive for small and medium transfers.	2-4%, generally less favorable.
Global Coverage	170+ countries, focused on key remittance corridors.	200+ countries, with an unmatched physical presence via 500,000+ agents.
Speed of Transfers	Express: minutes; Economy: 3-5 business days.	Cash: instant; Bank transfers: 1-3 business days.
Receiving Options	Bank deposit, cash pickup, mobile wallets.	Bank deposit, cash pickup, mobile wallets, prepaid cards (limited).
Payment Options	Bank transfers (cheaper), credit card payments (higher fees).	Bank transfers, credit cards (higher fees), cash payments.
Promotions	Fee waivers and promotional rates for new users.	Some no-fee options, but promotions are limited.
Digital Experience	User-friendly app with real-time tracking and intuitive design.	Advanced tools for regular users; rewards for frequent senders.
Best Use Case	Ideal for users prioritizing cost-efficiency and digital convenience.	Best for those needing instant cash pickups and broad global coverage.

Ultimately, your decision will come down to what matters most—whether it’s speed, cost, or convenience. And while sending money is important, staying connected is priceless. With Yolla, you can call your loved ones anywhere in the world for less, bridging the distance with perfect call quality to both mobiles and landlines. The best part is that the person you’re calling doesn’t need the app. However, if you think they might like it, invite them, it’s a great way to earn free credits. Download Yolla today for the best international calling experience.

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