Hey there! Mani here.
After years of helping NRIs send money back home, I’ve become quite familiar with both Remitly and Wise.
Let me break down everything you need to know about these two popular money transfer services.
Picture these two as the Amazon and Flipkart of international money transfers – each with its own unique advantages.
In this article...
What is Remitly: Features and Services
Remitly, launched in 2011, is like a digital money courier service designed specifically for immigrants and expatriates.
Think of it as your neighborhood money transfer shop, but entirely online and available 24/7.
The service operates in over 170 countries and handles more than 100 currencies, making it a truly global platform.
💡 Tip: Remitly’s mobile app lets you track your transfer status in real-time, just like tracking a food delivery!
What is Wise: Understanding the Alternative
Wise (formerly TransferWise) takes a different approach to international transfers.
They’re known for their transparency and mid-market exchange rates – think of it as getting wholesale prices instead of retail markup.
Unlike Remitly’s focus on speed, Wise prioritizes cost-effectiveness and typically takes 2-3 working days for transfers.
When comparing Wise and Remitly, it’s like choosing between a Swiss Army knife and a specialized tool.
Both have their strengths, but which is “better” depends on your specific needs.Wise generally comes out on top for overall cost-effectiveness and transparency.
It’s like getting wholesale prices on currency exchange, using the mid-market rate without markups. This can result in significant savings, especially for larger transfers.
Wise also offers a multi-currency account, which is like having bank accounts in multiple countries without leaving your home.
This feature is particularly valuable for frequent travelers or those dealing with multiple currencies regularly.However, Remitly shines in certain areas.
It’s like a specialized express delivery service for money, particularly well-suited for remittances to developing countries. Remitly offers more payout options, including cash pickup and home delivery in some locations.
This can be crucial if you’re sending money to recipients without easy access to bank accounts.In terms of transfer speed, Remitly’s Express service can be faster than Wise for certain routes, delivering money in minutes rather than days.
However, this speed often comes at a higher cost.Wise tends to have higher transfer limits, making it more suitable for large transactions.
For instance, you can send up to $1,000,000 per transfer with Wise, while Remitly’s limits are typically lower and vary by country.
Both services are considered safe and reliable, but Wise has a slight edge in terms of customer satisfaction. It boasts a higher Trustpilot score (4.2 out of 5) compared to Remitly (4 out of 5).
For business users, Wise offers more comprehensive solutions, including a business account and API integration for automated payments.
Remitly, on the other hand, is primarily focused on personal transfers.In summary, Wise is generally better for cost-conscious users, frequent travelers, and businesses dealing with multiple currencies.
Remitly might be the better choice if you need to send money quickly to recipients in developing countries, especially if cash pickup is required.
As with many financial decisions, the best choice depends on your specific circumstances and priorities.
| Feature | Wise | Remitly |
|---|---|---|
| Exchange Rates | Mid-market rate | Markup of 0.5% to 3.0% |
| Transfer Fees | Transparent, low fees | Variable fees based on transfer type |
| Transfer Speed | Most transfers within 24 hours | Express option available in minutes |
| Payout Options | Primarily bank transfers | Bank transfers, cash pickup, mobile wallets |
| Countries Served | 160+ countries | 170+ countries |
| Multi-Currency Account | Available | Not available |
| Business Services | Comprehensive business solutions | Limited to personal transfers |
| Customer Satisfaction | Trustpilot score: 4.2/5 | Trustpilot score: 4/5 |
Remitly vs Wise Exchange Rates: The Cost Comparison
Here’s where things get interesting! The exchange rate difference between these services is like comparing prices at a convenience store versus a wholesale market.
Wise offers the mid-market rate – the same rate you see on Google.
Remitly adds a markup of 0.5% to 3.0% to the exchange rate, depending on the currency pair.
💡 Tip: Always check both services before making a large transfer. The difference in exchange rates can significantly impact how much money reaches your recipient.
Remitly vs Wise – Transfer Speed Comparison
Here’s a quick comparison of transfer speeds for Wise and Remitly:
| Transfer Speed | Wise | Remitly |
|---|---|---|
| Fastest Option | 50% of transfers instant | Express transfers in minutes |
| Standard Speed | 90% arrive within 24 hours | Economy transfers in 3-5 days |
| Factors Affecting Speed | Payment method, destination | Transfer type, destination |
Wise boasts impressive speed, with half of its transfers arriving instantly and 90% completed within a day.
This is like ordering a pizza and having it arrive piping hot at your doorstep before you even hang up the phone.Remitly, on the other hand, offers a choice between speed and cost.
Their Express service is like a financial sprint, delivering funds in minutes, but at a higher price. The Economy option is more of a marathon, taking 3-5 days but costing less.
It’s worth noting that transfer speed can vary depending on factors like the destination country and payment method. For both services, using a credit or debit card typically results in faster transfers compared to bank transfers.
Ultimately, if speed is your top priority and you’re willing to pay a bit extra, Remitly’s Express service might be your best bet.
However, if you want a balance of speed and cost-effectiveness, Wise’s consistently quick transfers could be the winner.
Remitly Security Features: Is Your Money Safe?
When it comes to security, Remitly is like a digital fort. They’ve implemented:
- AES256 and 2048-bit RSA encryption
- Multi-level security systems
- Advanced fraud detection
- Two-factor authentication
The company is registered with the US Department of Treasury and regulated by various financial authorities worldwide.
How Remitly Works: The Transfer Process
Let me walk you through how Remitly operates. It’s as simple as ordering food online!
First, you create an account and verify your identity.
Then you:
- Choose your recipient country
- Enter the transfer amount
- Select transfer speed (Express or Economy)
- Provide recipient details
- Choose your payment method
- Confirm and track
💡 Tip: Use Economy transfers for large amounts and Express only when speed is crucial. The difference in fees can be substantial!
Remitly Delivery Options: Flexibility in Receiving Funds
One of Remitly’s strongest features is its flexible delivery options:
- Direct bank deposits
- Cash pickup at local partner locations
- Mobile wallet transfers
- Home delivery (in select countries)
Wise Transfer Process: The Alternative Approach
Wise keeps things straightforward with primarily bank-to-bank transfers.
They focus on transparency and cost-effectiveness rather than speed.
Their process typically involves:
- Direct debit from your bank
- Mid-market exchange rates
- Longer processing times
- Lower overall costs
Final Thoughts
Choosing between Remitly and Wise really depends on your priorities.
If speed is crucial and you don’t mind paying a bit extra, Remitly’s Express service is your best bet.
If you’re looking for the best exchange rate and don’t need the money to arrive immediately, Wise might be the better choice.
Frequently Asked Questions
- “Which service is cheaper?”
Wise typically offers better rates due to their mid-market exchange rates, but Remitly might be cheaper for small transfers due to their fee structure. - “How long do transfers take?”
Remitly: Express (minutes to hours), Economy (3-5 days)
Wise: Typically 2-3 working days - “What are the sending limits?”
Remitly: $2,999 daily for new users, up to $10,000 with verification
Wise: Varies by country but generally higher limits - “Can I track my transfer?”
Both services offer real-time tracking through their apps and websites. - “Which service is safer?”
Both are highly regulated and secure, using advanced encryption and security measures.
Sources: This guide has been compiled using information from Remitly, Wise, MoneyTransfers, and other authoritative sources.
