Remitly vs. Moneygram: My Definitive Comparison Guide

Here’s my honest Remitly vs. MoneyGram comparison guide. As the global financial services industry continues to grow, online money transfer services have become crucial for seamless and affordable cross-border transactions.

Remitly stands out for its rapid transfer speeds and user-friendly mobile app, making it ideal for urgent money transfers. However, its higher fees for Express services can be a drawback.

MoneyGram fills this gap with its more extensive global network and lower fees for certain transfers. While MoneyGram may not match Remitly’s speed, it offers a cost-effective solution and broader reach, particularly beneficial for less accessible locations.

The main difference is that Remitly primarily focuses on fast and mobile-friendly transfers with an emphasis on customer service, while MoneyGram offers a wider range of physical and digital payment options with extensive global reach.

Key Features Comparison: An Overview

Let this table guide your decision-making process when choosing between Remitly and MoneyGram:

Personal note:

I switched to Remitly because its instant transfer feature is a game-changer for me. While MoneyGram is great for its wide reach and various payment options, I needed something faster and more convenient for urgent transactions. Remitly’s Express service lets me send money quickly, which is invaluable for my busy schedule. Both services have their strengths, but Remitly’s speed and efficiency won me over in the end.

What is Remitly and How Does It Work?

Remitly is a digital remittance service designed to make international money transfers easy and affordable. It offers several transfer options including bank deposits, cash pickups, and mobile money transfers. Remitly focuses on user experience with a simple, intuitive mobile app and fast processing times. It provides a transparent fee structure and competitive exchange rates.

Pros of Remitly

• Fast transfer options
• Transparent fees
• Competitive exchange rates
• User-friendly mobile app
• Good customer support

Cons of Remitly

• Limited physical agent locations
• Fees vary by payment method
• May have higher fees for urgent transfers
• Not available in all countries

What is MoneyGram and How Does It Work?

MoneyGram is a global financial services company offering international money transfers, bill payments, and money orders. It operates through a vast network of agents and physical locations worldwide, alongside its digital platform. Users can send money online, via mobile app, or at an agent location, with a range of delivery options including cash pickup and bank deposits.

Pros of MoneyGram

• Extensive global network
• Multiple transfer methods
• A broad range of payment options
• Good physical location coverage
• Reliable customer support

Cons of MoneyGram

• Higher fees compared to some competitors
• Variable exchange rates
• Can have slower transfer speeds
• Customer service can be inconsistent

Remitly vs. MoneyGram: Side-by-Side Comparison

Here’s a detailed side-by-side comparison of the seven key features for Remitly vs. MoneyGram:

Transfer Speed

Remitly offers two types of transfer speeds: Standard and Express. Standard transfers can take 3-5 business days, depending on the recipient’s country. However, their Express service is where Remitly excels, with transfers typically completed within minutes to a few hours. This rapid delivery is ideal for urgent needs. The speed can vary based on the payment method and recipient’s location, but generally, Remitly’s Express service is known for its efficiency.

MoneyGram also provides quick transfers, often completed within minutes for cash pickups and 1-2 hours for bank deposits, depending on the destination. While their service is generally fast, MoneyGram’s processing times can be influenced by various factors, such as the payment method and country-specific regulations. Overall, both services are competitive, but Remitly’s Express option offers a slight edge in speed.

Verdict: Remitly

Fees

Remitly’s fee structure is relatively straightforward, with fees varying based on the transfer speed, amount, and destination. Standard transfers usually incur lower fees compared to Express transfers, which are faster but come at a premium. The fees are clearly outlined during the transfer process, allowing users to choose based on their budget and urgency. Remitly’s transparent pricing helps users understand exactly what they will be paying before initiating a transfer.

MoneyGram’s fees can be higher, especially for cash pickups and urgent transfers. Their fee structure is more complex, with variations depending on the transfer amount, destination, and payment method. While MoneyGram provides a broad range of services, the higher fees for certain methods and urgent transactions can be a downside compared to Remitly’s more predictable pricing.

Verdict: Remitly

Coverage

Remitly operates in over 100 countries, focusing on regions with high remittance demand. Their network includes major countries in Africa, Asia, Latin America, and parts of Europe. While their reach is extensive, it’s not as broad as MoneyGram’s. Remitly’s focus on these key regions allows for targeted services and partnerships, making it a strong choice for users in these areas.

MoneyGram has a wider global reach, operating in over 200 countries and territories. This extensive network includes both major cities and remote areas, making it a versatile option for users worldwide. MoneyGram’s physical presence through agents and partners enhances its accessibility, especially in regions where digital options are less prevalent.

Verdict: MoneyGram

Transfer Methods

Remitly offers several transfer methods, including bank deposits, cash pickups, and mobile money. Their focus is on digital solutions, which makes their service convenient for users who prefer online transactions. For cash pickups, Remitly partners with local agents and banks. Their mobile money option is particularly useful in countries where mobile payments are popular.

MoneyGram provides a diverse range of transfer methods, including bank deposits, cash pickups, mobile money, and bill payments. Their extensive agent network allows for a high degree of flexibility in how money can be sent and received. This variety makes MoneyGram suitable for users with different needs and preferences.

Verdict: MoneyGram

Mobile App

Remitly’s mobile app is highly rated for its user-friendly design and functionality. It allows users to initiate and track transfers, check exchange rates, and manage their account from their smartphone. The app’s interface is intuitive, making it easy for users to navigate and complete transactions quickly. Remitly also offers features like push notifications and real-time tracking to keep users informed.

MoneyGram’s mobile app is functional but often considered less user-friendly compared to Remitly’s. While it allows for sending and receiving money, tracking transactions, and locating agents, users sometimes find the app’s interface less intuitive. However, it still provides essential services and supports both digital and physical transactions.

Verdict: Remitly

Customer Support

Remitly provides 24/7 customer support through various channels, including phone, email, and live chat. Their support team is known for being responsive and helpful, addressing user concerns and resolving issues efficiently. The availability of round-the-clock support is particularly beneficial for users in different time zones.

MoneyGram’s customer support operates during standard business hours, with options for phone and email support. While generally reliable, their support might not be as accessible outside of regular business hours. Some users report mixed experiences with response times and issue resolution.

Verdict: Remitly

Exchange Rates

Remitly offers competitive exchange rates, which are generally better than industry averages. Their rates can fluctuate based on the destination and currency pair, but they are typically transparent, with real-time rates available for users to review before confirming a transfer. Remitly’s rates are often more favorable for online transactions compared to some traditional services.

MoneyGram’s exchange rates can be less competitive, with rates that vary based on the transaction amount, destination, and payment method. The rates might not always be as transparent, and users may encounter less favorable rates, particularly for smaller amounts or less common currency pairs.

Verdict: Remitly

Use Cases for Remitly

1. Sending Money to Family: Ideal for individuals who need to send funds quickly to family members abroad, especially in countries where Remitly has strong mobile and bank partnerships.
2. Small Business Payments: Small business owners who need to make international payments can benefit from Remitly’s fast and cost-effective transfer options.

Use Cases for MoneyGram

1. Cash Pickup Services: Ideal for those sending money to recipients who prefer or need to pick up cash from a physical location, especially in remote areas.
2. Bill Payments and Money Orders: MoneyGram’s broad range of services includes bill payments and money orders, making it a versatile option for various financial needs.

Pricing Breakdown

Remitly Pricing

• Standard Transfers: Varies by country; generally low fees.
• Express Transfers: Higher fees for faster delivery.
• Exchange Rates: Competitive, but varies by destination.

MoneyGram Pricing

• Cash Pickup: Higher fees compared to online transfers.
• Bank Deposits: Fees vary based on transfer amount and location.
• Exchange Rates: Variable and can be less favorable.

Factors to Consider When Choosing a Payment Method:

Speed of Transfer

Remitly offers two primary transfer speeds: Economy and Express. Economy transfers take 3-5 business days, but the Express option delivers funds within minutes. This rapid delivery is especially beneficial for emergencies or time-sensitive situations. Remitly’s emphasis on speed makes it a strong contender for those needing instant or near-instant transfers.

MoneyGram provides several delivery options, including same-day, next-day, and 3-5 business days. However, the speed depends on factors like the recipient’s location and the payment method used. While MoneyGram’s same-day service is competitive, it might not be as consistently rapid as Remitly’s Express option.

Verdict: Remitly excels in transfer speed with its Express service, making it ideal for urgent transactions. MoneyGram offers flexibility but may not match Remitly’s immediate delivery.

Fees and Costs

Remitly’s fees vary based on transfer speed, payment method, and destination. Express transfers have higher fees compared to Economy options. The overall cost can also fluctuate with exchange rates. Remitly’s transparent fee structure allows users to see costs before confirming a transfer.

MoneyGram’s fees are influenced by factors like the transfer amount, destination, and payment method. They also offer various options to pay, including bank accounts, credit/debit cards, and cash. While MoneyGram provides detailed fee information, costs can be higher for faster services.

Verdict: Remitly’s clear fee structure and options for different speeds offer a more straightforward pricing model compared to MoneyGram’s variable fees.

Coverage and Availability

Remitly operates in over 100 countries, making it widely accessible. Its network includes many regions where it can deliver funds quickly. However, its reach might be limited in some remote areas compared to competitors.

MoneyGram has an extensive global network, covering over 200 countries and territories. Its widespread presence makes it a reliable choice for sending money to less accessible locations.

Verdict: MoneyGram’s broader coverage provides greater reach, but Remitly’s growing network is sufficient for most common international transfers.

Customer Service

Remitly offers customer support through various channels, including phone, email, and live chat. Users generally report positive experiences with its responsive support team. Additionally, the company provides extensive online resources for troubleshooting and FAQs.

MoneyGram provides customer service via phone, email, and in-person at its locations. While it has a strong support network, users occasionally report longer wait times and less intuitive online support compared to Remitly.

Verdict: Remitly’s user-friendly support and online resources offer a better overall customer experience than MoneyGram’s traditional support channels.

Exchange Rates

Remitly’s exchange rates are competitive, especially for Express transfers. They provide real-time exchange rates, which may include a margin. Users can compare rates before completing their transfers, allowing for informed decisions.

MoneyGram’s exchange rates can vary based on the transfer method and destination. They offer competitive rates, but users should be aware of potential margins and fees included in the conversion process.

Verdict: Remitly’s real-time rates and transparency offer a slight edge over MoneyGram, particularly for users who prioritize rate accuracy in their transfers.

FAQs

1. Which service offers faster transfers, Remitly or MoneyGram?

Remitly generally provides faster transfers compared to MoneyGram. With Remitly’s Express service, funds can be delivered within minutes, making it ideal for urgent transfers. MoneyGram offers same-day service as well, but delivery times can vary based on location and payment method.

2. How do the fees compare between Remitly and MoneyGram?

Remitly and MoneyGram both have varying fees based on transfer speed, payment method, and destination. Remitly’s fees are typically lower for Economy transfers but higher for Express options. MoneyGram’s fees can be higher for expedited services and vary by region and payment method.

3. Which service has better global coverage?

MoneyGram has a broader global reach, covering over 200 countries and territories, which makes it suitable for sending money to less accessible locations. Remitly operates in over 100 countries, which is substantial but not as extensive as MoneyGram’s network.

4. How does customer service compare between the two?

Remitly’s customer service is often praised for being responsive and accessible through phone, email, and live chat. MoneyGram also offers multiple support channels, including in-person help, but users occasionally report longer wait times and less intuitive online support.

5. Are the exchange rates better with Remitly or MoneyGram?

Remitly typically offers competitive exchange rates, especially for Express transfers, with real-time rate visibility. MoneyGram provides competitive rates but may include margins and fees in the exchange process. Users should compare rates and fees before choosing a service.

Is Remitly Better than MoneyGram?

Remitly shines with its lower fees, user-friendly app, and competitive exchange rates, making it an excellent choice for those seeking cost-effective, digital-first transfers.

MoneyGram, on the other hand, excels with its extensive global network and physical locations, making it suitable for those needing cash pickups or a broader range of services.

For frequent, digital, and cost-effective transfers, Remitly is preferable. For extensive physical service options and global reach, MoneyGram may be the better choice.