Wise vs Remitly vs Xoom vs WorldRemit vs Western Union | Fees, Rates, Speed & Features

Choosing the right international money transfer service requires understanding exactly what each platform offers—and what it costs. This data-driven comparison analyzes the six major remittance services available in the USA, examining their fee structures, exchange rate policies, transfer speeds, delivery options, and geographic coverage. With over $150 billion flowing from US-based senders annually, selecting the optimal service can yield substantial savings.

Understanding Transfer Pricing Models

Component 1: Transaction Fees

Services charge either flat fees ($0–$25) or percentage-based fees (0.4%–2%). Some vary by payment method (bank transfer vs. debit card) or transfer speed (express vs. economy).

Component 2: Exchange Rate Margin

The mid-market rate (interbank rate) represents the true currency value. Most services add a margin of 0.5%–4% to this rate. Wise is the only major service offering the actual mid-market rate with zero markup.

Total Cost Formula

True Cost = Transaction Fee + (Send Amount × Exchange Rate Margin) — Always calculate both components when comparing services.

Service Specifications Comparison

Detailed Service Analysis

Wise (TransferWise)

• Pricing model: Percentage fee (0.4%–1.5%) + mid-market exchange rate
• Competitive advantage: Only service offering zero exchange rate markup
• Speed: 1–2 business days standard; instant to select countries
• Additional features: Multi-currency account, international debit card, business accounts
• Limitations: No cash pickup; bank deposit only

Remitly

• Pricing model: Flat fee ($0–$3.99) + exchange rate markup (varies by speed)
• Speed tiers: Express (minutes, higher markup) vs. Economy (3–5 days, better rate)
• Delivery options: Bank deposit, cash pickup, mobile money, home delivery
• Target markets: Strong in Latin America, South Asia, Southeast Asia, Africa
• Notable: Multi-language app, excellent customer service reputation

WorldRemit

• Pricing model: Flat fee ($0.99–$4.99) + small exchange markup
• Specialization: Mobile money transfers (M-Pesa, MTN, Airtel Money, Orange Money)
• Geographic strength: Best coverage for Sub-Saharan Africa
• Additional services: Airtime top-up, cash pickup, bank transfers

Xoom (PayPal)

• Pricing model: Variable fee ($0–$4.99) + 1–3% exchange markup
• Integration: Seamless PayPal account linkage
• Unique features: Bill payment, mobile reload, home delivery
• Best for: Existing PayPal users, bill payments abroad

Western Union & MoneyGram

• Network: 500,000+ (WU) and 350,000+ (MG) agent locations globally
• Pricing: Higher fees ($5–$25+) and significant exchange markup (2–4%)
• Use case: Cash pickup in remote/underbanked areas where alternatives unavailable
• Recommendation: Use only when cash pickup is essential; avoid for bank transfers

Optimal Service by Corridor

Cost Optimization Strategies

1. Fund via ACH/bank transfer: Avoids $1–$5 debit card fees
2. Batch transfers: Flat fees favor larger, less frequent transfers
3. Rate alerts: Set notifications for favorable exchange rate movements
4. Utilize promotions: New user offers (fee-free transfers) provide one-time savings
5. Compare per transaction: Use Monito, Exiap, or CompareRemit—rates fluctuate daily

Security Protocols

• All major services are licensed and regulated financial institutions
• Use only official apps from Apple App Store or Google Play
• Enable two-factor authentication where available
• Verify recipient details before confirming transfers
• Retain transaction receipts and confirmation numbers

Summary Recommendations

• Best overall value: Wise (mid-market rate, transparent fees)
• Best for speed/cash: Remitly (Express delivery, multiple options)
• Best for Africa: WorldRemit (mobile money specialization)
• Best for PayPal users: Xoom (seamless integration)
• Cash pickup only: Western Union (largest network, use sparingly)

Optimal service selection depends on corridor, delivery method, and transfer frequency. Compare before each transaction.