7 Cheapest Ways to Send Money Internationally in 2025
For millions of immigrants living in the United States, sending money back home is a regular necessity—supporting families, paying bills, or building savings in their home country. According to the World Bank, people in the US sent over $93 billion abroad in 2024, making it the world’s largest source of remittances.
Yet many people overpay on fees and exchange rates simply because they don’t know better options exist. The difference between using a bank and using the cheapest money transfer app can be 7% or more of your transfer—that’s $70 lost on every $1,000 you send.
Important 2025 Update: A new 1% federal remittance tax was signed into law in July 2025, affecting cash-based transfers. We cover everything you need to know about this change below.
This comprehensive guide compares the best international money transfer services in 2025, helping you keep more of your hard-earned money while ensuring your loved ones receive funds quickly and safely.
Quick Comparison: Best Money Transfer Services 2025
Here’s how the top services compare at a glance. Scroll down for detailed reviews of each service.
| Service | Best Rate? | Speed | Cash Pickup | Mobile $ | Best For |
| Wise | ✓ BEST | 1-2 days | ✗ | ✗ | Best rates overall |
| Remitly | Good | Minutes | ✓ | ✓ | Speed + flexibility |
| WorldRemit | Good | Minutes | ✓ | ✓ BEST | Africa & mobile money |
| Xoom | Fair | Minutes | ✓ | ✓ | PayPal users |
| Western Union | Poor | Minutes | ✓ BEST | ✓ | Remote cash pickup |
| MoneyGram | Poor | Minutes | ✓ | ✓ | Walmart access |
| OFX | Good | 1-3 days | ✗ | ✗ | Large transfers |
How International Money Transfer Fees Really Work (Hidden Costs Exposed)
Before comparing services, you need to understand how money transfer companies actually make money—because it’s not always obvious. The advertised “low fee” or “free transfer” often hides significant costs in the exchange rate.
The Two Ways You Pay
Every international money transfer involves two potential costs:
- Upfront Transfer Fee: The flat fee or percentage charged for the transfer. This is usually displayed prominently—$5, $10, or “1.5% of transfer amount.”
- Exchange Rate Markup (The Hidden Cost): Companies offer you an exchange rate that’s worse than the “mid-market rate” (the real rate you see on Google or XE.com). This markup can be 1-5% or more, costing you far more than the upfront fee.
What Is the Mid-Market Exchange Rate?
The mid-market rate (also called the “interbank rate” or “real exchange rate”) is the midpoint between the buy and sell prices of two currencies on the global market. It’s what banks use when trading with each other. When a service offers you a rate that’s different from this, they’re keeping the difference as hidden profit.
Example: If the mid-market rate for USD to INR is 83.00, but a service offers you 81.50, they’re keeping the difference—about 1.8% of your money.
Real-World Cost Comparison: Sending $1,000 to India
Here’s what different services would actually cost you:
| Service | Fee | Rate Offered | Recipient Gets | True Cost |
| Mid-Market (Ideal) | $0 | 83.00 | ₹83,000 | $0 (0%) |
| Wise | $6.50 | 83.00 | ₹82,460 | $6.50 (0.65%) |
| Remitly (Express) | $3.99 | 82.10 | ₹81,771 | $14.80 (1.5%) |
| Western Union | $5.00 | 80.50 | ₹80,123 | $34.65 (3.5%) |
| Bank Wire Transfer | $45.00 | 79.50 | ₹75,923 | $85.20 (8.5%) |
Key Takeaway: Using a bank costs you over $78 more than Wise—that’s nearly 8% of your transfer lost to fees and bad exchange rates!
How to Calculate the True Cost of Any Transfer
Follow this simple formula before every transfer:
- Check the mid-market rate on Google or XE.com
- Calculate what your recipient would get at that rate: Amount × Mid-Market Rate
- Calculate what they actually get with the service (after fees and their exchange rate)
- The difference is your true cost
- Divide by amount sent to get your percentage cost
NEW: 2025 Remittance Tax Explained—What You Need to Know
⚠️ Important Policy Change: On July 4, 2025, the “One Big Beautiful Bill Act” was signed into law, introducing a 1% federal excise tax on certain outbound money transfers. This affects millions of immigrants sending money home.
Who Does the Remittance Tax Affect?
The tax applies to:
- Cash-based transfers (cash, money orders, cashier’s checks)
- Non-citizens sending money abroad
- Transfers made through services that cannot verify US citizenship
Who Is Exempt from the Tax?
- US citizens with verified Social Security Numbers
- Bank-to-bank transfers (ACH, wire transfers from your bank account)
- Transfers through “qualified” providers who verify citizenship status
How to Minimize the Remittance Tax Impact
- Use bank account funding: Link your bank account to services like Wise or Remitly instead of paying with cash
- Verify your identity: Provide SSN documentation to qualified remittance providers to claim the tax credit
- Send larger, less frequent transfers: Batching transfers reduces the number of taxable events
- Keep records: The tax may be creditable against your US tax bill—save all receipts
Detailed Reviews: Best International Money Transfer Services
1. Wise (Formerly TransferWise) — Best Exchange Rates Overall
Wise has revolutionized international money transfers by offering the mid-market exchange rate with transparent, low fees. Founded in 2011, they’ve built a reputation for honesty and competitive pricing, serving over 16 million customers who move $10+ billion monthly.
| Fees | 0.4% – 1.5% depending on currency and payment method |
| Exchange Rate | Mid-market rate (the REAL rate with NO markup) |
| Speed | 1-2 business days; instant for some corridors (70% under 20 seconds) |
| Delivery Options | Bank deposit only (no cash pickup) |
| Countries | 160+ countries, 40+ currencies |
| Transfer Limits | Up to $1,000,000 per wire transfer |
Pros:
- Transparent pricing—what you see is what you pay
- Multi-currency account to hold 50+ currencies
- Wise debit card for spending abroad
- Excellent mobile app (4.7/5 on App Store)
Cons:
- No cash pickup option
- Slightly slower than competitors for urgent transfers
- May require identity verification for larger amounts
Best For: Regular senders who prioritize getting the absolute best exchange rate and don’t need cash pickup. Ideal for sending to bank accounts in India, Mexico, Philippines, and most major corridors.
2. Remitly — Best for Speed and Flexibility
Remitly focuses on immigrant communities sending money to developing countries. They offer multiple delivery speeds and options including cash pickup, mobile money, and bank deposits. Their app is available in multiple languages and designed for ease of use.
| Fees | $0 – $3.99 for Express; FREE for Economy transfers |
| Exchange Rate | Includes markup (varies by speed and destination) |
| Speed | Minutes (Express) to 3-5 days (Economy) |
| Delivery Options | Bank deposit, cash pickup, mobile money, home delivery |
| Countries | 170+ countries, strong in Latin America, Asia, Africa |
| Transfer Limits | Up to $50,000 per ACH; $2,000 per card transaction |
Pros:
- Multiple delivery options including cash pickup
- Express transfers arrive in minutes
- Excellent first-time user promotions
- On-time delivery guarantee with fee refund
Cons:
- Exchange rate markup can be significant on Express
- Promotional rates only for first transfer
- Lower transfer limits than Wise
Best For: Sending to developing countries, especially when recipients need cash pickup or mobile money. Great for urgent transfers to Latin America, Philippines, and India.
Wise vs Remitly: Head-to-Head Comparison
These are the two most popular services—here’s how they compare directly:
| Feature | Wise | Remitly |
| Exchange Rate | Mid-market (BEST) | Markup applied |
| Typical Fee | 0.4-1.5% | $0-3.99 |
| Speed | 1-2 days (some instant) | Minutes to 5 days |
| Cash Pickup | No | Yes |
| Mobile Money | Limited | Yes (GCash, M-Pesa) |
| Multi-Currency Account | Yes | No |
| Debit Card | Yes | No |
| Trustpilot Rating | 4.3/5 (270K+ reviews) | 4.6/5 (100K+ reviews) |
Bottom Line: Choose Wise for the best exchange rates on bank-to-bank transfers. Choose Remitly for speed and cash pickup options. For most users sending to bank accounts, Wise will save you more money overall.
3. Western Union — Best for Remote Cash Pickup
Western Union is the oldest and most recognized name in money transfers, with over 500,000 agent locations worldwide. While not the cheapest option, their unmatched physical network makes them essential for cash pickup in remote areas where other services don’t reach.
| Fees | $5 – $25+ depending on amount, destination, method |
| Exchange Rate | Significant markup (typically 2-4%) |
| Speed | Minutes for cash pickup; 1-5 days for bank transfers |
| Delivery Options | Cash pickup, bank deposit, mobile wallet, home delivery |
| Countries | 200+ countries—largest global network |
Pros:
- Massive global network—cash pickup almost anywhere
- Trusted, established brand since 1851
- First online transfer often free
Cons:
- Expensive—high fees AND poor exchange rates
- Pricing is confusing and varies unpredictably
- Common target for scammers (never send to strangers)
Best For: Urgent cash pickup in remote areas where other services don’t operate. Should be a last resort for cost-conscious senders due to high total costs.
4. WorldRemit — Best for Africa & Mobile Money
WorldRemit excels in mobile money transfers, making it ideal for sending to countries where mobile wallets are more common than bank accounts. They support M-Pesa, MTN Mobile Money, Airtel Money, and other popular services across Africa and Asia.
| Fees | $0.99 – $4.99 for most transfers |
| Exchange Rate | Small markup included |
| Speed | Minutes for mobile money; 1-3 days for bank |
| Delivery Options | Mobile money, bank deposit, cash pickup, airtime top-up |
| Countries | 150+ countries—excellent African coverage |
Best For: Sending to Africa (Kenya, Nigeria, Ghana, Uganda) and anywhere recipients use mobile money instead of traditional banking.
5. Xoom (PayPal) — Best for PayPal Users
Xoom, owned by PayPal, offers the security of a trusted brand with extensive delivery options. If you already use PayPal, Xoom integrates seamlessly with your existing account and payment methods.
| Fees | $0 – $4.99 depending on payment method and destination |
| Exchange Rate | Includes markup (typically 1-3%) |
| Speed | Minutes to hours for most destinations |
| Delivery Options | Bank deposit, cash pickup, mobile reload, home delivery |
| Countries | 130+ countries |
Best For: PayPal users who want seamless integration, bill pay features, and mobile top-ups. Good option for sending to Latin America.
6. MoneyGram — Best for Walmart Access
MoneyGram is Western Union’s main competitor with a similar global agent network. Their partnership with Walmart makes them especially convenient for in-person services across the US.
| Fees | $1.99 – $20+ depending on method and destination |
| Exchange Rate | Includes markup (similar to Western Union) |
| Speed | Minutes for cash pickup |
| Delivery Options | Cash pickup, bank deposit, mobile wallet |
| Countries | 200+ countries |
Best For: People who prefer in-person service at Walmart locations, or as an alternative when Western Union is unavailable.
7. OFX — Best for Large Transfers ($10,000+)
OFX specializes in large international transfers with no maximum limits. They’re ideal for major expenses like property purchases, tuition payments, or business transactions where you’re moving significant sums.
| Fees | No transfer fees for US customers |
| Exchange Rate | Competitive markup; better rates for larger amounts |
| Speed | 1-3 business days |
| Delivery Options | Bank deposit only |
| Countries | 170+ countries, 50+ currencies |
| Transfer Limits | No maximum—send as much as needed |
Best For: Transfers over $10,000—property purchases, tuition, business payments. 24/7 customer service and personalized support for large transactions.
Best Money Transfer Services by Destination Country
Different services excel for different destinations. Here are our top picks for the most popular remittance corridors from the USA:
Send Money to Mexico: Best Options 2025
Mexico is the largest remittance destination from the US, receiving over $63 billion annually. Competition is fierce, meaning great deals are available.
- Best for Bank Deposit: Wise (best exchange rate) or Remitly (fastest)
- Best for Cash Pickup: Remitly or Xoom (extensive OXXO and Elektra locations)
- Pro Tip: Many Mexican banks now support instant deposits from Wise and Remitly via SPEI
Send Money to India: Best Options 2025
India is the world’s largest remittance recipient. The USD-INR corridor is highly competitive with excellent digital options.
- Best Overall: Wise (consistently best rates, direct to any Indian bank)
- Best for Speed: Remitly Express (minutes to major banks)
- Pro Tip: UPI-linked accounts can receive instant transfers from several services
Send Money to Philippines: Best Options 2025
The Philippines has a highly developed remittance infrastructure with multiple delivery options including e-wallets like GCash and Maya.
- Best for Bank/GCash: Remitly (instant to GCash) or Wise (best rates)
- Best for Cash Pickup: Western Union or Remitly (extensive pawnshop network)
- Pro Tip: GCash transfers from Remitly are often instant and fee-free
Send Money to Africa: Best Options 2025
Africa’s mobile money revolution makes WorldRemit and Remitly excellent choices. M-Pesa dominates in East Africa.
- Best for Mobile Money: WorldRemit (M-Pesa, MTN, Airtel Money support)
- Best for Nigeria: Remitly or Wise (competitive NGN rates)
- Best for Cash Pickup: Western Union (widest network in rural areas)
- Pro Tip: Mobile money transfers are often instant and avoid bank delays
5 Strategies to Save Money on Every International Transfer
Small optimizations add up to significant savings over time. Here are proven strategies to minimize transfer costs:
1. Choose the Right Payment Method
How you fund your transfer affects the cost:
- Bank transfer/ACH: Usually cheapest, but takes 1-3 days to process
- Debit card: Instant but may add $1-$5 fee
- Credit card: AVOID—often treated as cash advance with fees and high interest
2. Batch Your Transfers
Sending $500 once costs less than sending $100 five times. Most services charge flat fees or percentage fees that favor larger amounts. If your family’s needs allow, send larger amounts less frequently.
3. Set Up Rate Alerts
Exchange rates fluctuate daily. Services like Wise and XE allow you to set alerts when your desired rate is reached. If your transfer isn’t urgent, waiting for a better rate can save 1-2% on large transfers.
4. Use First-Time Promotions
Most services offer promotions for new users—free first transfer, zero fees up to a certain amount, or bonus amounts. Take advantage, but always compare the total cost including exchange rate. A “free” transfer with a bad rate may cost more than a paid transfer with a good rate.
5. Compare Before Every Transfer
Rates and fees change constantly. What was cheapest last month may not be cheapest today. Use comparison tools like Monito, Exiap, or CompareRemit to check multiple services before each transfer. It takes two minutes and can save significant money.
Staying Safe: How to Avoid Money Transfer Scams
Money transfer scams specifically target immigrants. Protect yourself and your money with these guidelines:
- Never send money to strangers: Legitimate businesses, government agencies, and employers will never ask you to wire money
- Verify recipient identity: Confirm you’re sending to the right person, especially for new recipients
- Be wary of urgency: Scammers create false emergencies; legitimate needs allow time to verify
- Use official apps only: Download transfer apps from official app stores, not links in emails or texts
- Keep records: Save confirmation numbers and receipts for every transfer
- Report suspicious activity: Contact the service immediately if anything seems wrong
Frequently Asked Questions About International Money Transfers
What is the cheapest way to send money internationally?
Wise typically offers the lowest total cost because they use the mid-market exchange rate with no markup. For bank-to-bank transfers under $10,000, Wise is usually the cheapest option. For cash pickup, compare Remitly’s Economy option against Western Union’s current promotions.
How long does an international money transfer take?
Transfer times vary by service and delivery method. Cash pickup: minutes. Mobile money: minutes to 1 hour. Bank deposit: 1-5 business days. Wise and Remitly offer instant delivery to many destinations when funded by debit card.
Is it safe to send money online?
Yes, when using licensed money transfer services. Companies like Wise, Remitly, and Xoom are regulated by financial authorities (FinCEN in the US, FCA in UK) and use bank-level encryption. Always download apps from official sources and verify you’re on legitimate websites.
Do I need a bank account to send money internationally?
No. Services like Western Union and MoneyGram allow you to pay in cash at agent locations. However, bank account or debit card payments typically offer lower fees and better exchange rates than cash-based transfers.
What is the 2025 remittance tax and does it affect me?
The 2025 remittance tax is a 1% federal excise tax on cash-based outbound transfers signed into law in July 2025. It primarily affects non-citizens sending money via cash or money orders. US citizens with verified SSNs and those using bank-funded transfers through qualified providers may be exempt or eligible for tax credits.
Which app has the best exchange rate?
Wise consistently offers the best exchange rate because they use the mid-market rate with no markup. Other services add a margin on top of the exchange rate, which varies by corridor and transfer speed. Always check the rate you’re actually getting, not just the advertised fee.
Can I send money without the recipient having a bank account?
Yes. Options include: Cash pickup (Western Union, MoneyGram, Remitly), Mobile money (WorldRemit, Remitly to M-Pesa, GCash), Home delivery (available in select countries through Remitly and Western Union), or Airtime top-up (WorldRemit).
Conclusion: Our Top Recommendations
Sending money home is an act of love and responsibility—you shouldn’t lose a significant portion to fees and unfair exchange rates. By understanding true transfer costs, comparing services for each transfer, and using the strategies in this guide, you can save hundreds or thousands of dollars annually.
Quick Recommendation Summary:
- Best exchange rates: Wise
- Fastest cash pickup: Western Union or Remitly
- Best for mobile money: WorldRemit
- Best app experience: Remitly or Wise
- Best for PayPal users: Xoom
- Widest global coverage: Western Union
- Best for large amounts: Wise or OFX
Remember: Every dollar you save on transfer fees is another dollar in your family’s pocket. Compare rates before every transfer!
Sources & References
World Bank Remittances Data (2024)
IMF Balance of Payments Statistics
One Big Beautiful Bill Act (July 2025) – Official Text
Company fee schedules accessed December 2025
Exchange rates shown are examples only and change constantly
