MoneyGram vs. Wise: Choose better

With the rising prominence of international money transfers comes the need for money transfer services that can distinguish themselves with excellent service or innovation. Our article covers two such names in the business who have crafted a reputation for themselves through brand recognition, fee structure, or transfer and payment options—MoneyGram and TransferWise (now known as Wise). Each service offers unique features that cater to different types of users. This article will explore the strengths and weaknesses of both MoneyGram and Wise to help you determine which is best suited for your needs.

About MoneyGram

MoneyGram is an American money transfer service with an extensive global presence, operating a network of more than 350,000 agent locations in over 200 countries and territories. The company is known for its range of services, including in-person transfers and digital services, which allow users to send money via its website or app.

About Wise

Wise is a fintech company initially launched as TransferWise in 2011. The company was born of the need for a transparent and affordable platform for international money transfers to challenge the monopoly of banks. They offer the mid-market exchange rate—the midpoint between the buy and sell rates on international currency markets—with low, transparent fees. This model has seen Wise becoming increasingly preferred by individuals and businesses that need to make cross-border payments minus the hefty bank fees.

Transfer Methods

MoneyGram offers both online and in-person transfers. You can send money via their website, mobile app, or at one of their agent locations. The physical option makes MoneyGram a solid choice for individuals who may not have access to bank accounts or prefer to send cash.

Wise, on the other hand, is almost entirely online-based. Users send money through the website or mobile app by linking their bank account or debit card. Wise doesn’t offer physical agent locations, so if in-person cash transfers are important to you, MoneyGram is the better option.

Fees and Exchange Rates

MoneyGram

MoneyGram tends to have higher fees, especially for cash pickups. The fee structure varies depending on the destination country, amount, and payment method.

• Example: Sending CAD 100 from Canada to India results in the recipient receiving 6,124.86 INR at 1 CAD = 61.2486 INR with a fee of 1.99 CAD.

Wise

Wise prides itself on using the mid-market exchange rate without hidden markups. Wise breaks down its charges clearly: a small percentage of the transfer amount plus a flat fee, making it a more economical option for larger transfers.

• Example: Sending CAD 100 from Canada to India via domestic wire transfer incurs a fee of 2.66 CAD—broken down to a fixed fee of 2.06 CAD and a variable fee of 0.60 CAD (0.62%) as of September 2024.

Speed of Transfer

MoneyGram benefits from an established, extensive network of agents that allows swift transfers, particularly for cash pickups. Their platform also offers bank transfers and other methods, with transfer speeds often depending on the receiving country’s banking infrastructure.

Wise does not deal with fast, instant cash pickups. They typically complete transactions within 1-2 business days for bank-to-bank transfers.

Availability

MoneyGram

MoneyGram operates in over 200 countries and has over 350,000 agent locations worldwide. This extensive reach makes it a strong choice for sending money to areas where online banking may not be widely available.

Wise

Wise supports transfers to more than 70 countries. While its reach is global, it does not have the physical infrastructure that MoneyGram boasts. If your recipient lives in a location where internet access or banking infrastructure is limited, MoneyGram’s network of physical agents could be a significant advantage.

Security

Both companies are regulated by financial authorities in their operating regions, providing robust consumer protection.

• MoneyGram: Offers two-factor authentication and encryption for online transfers and complies with anti-fraud measures. Its long history in the industry also assures users of its reliability.
• Wise: Known for its high level of transparency and security, Wise offers multi-currency accounts, two-factor authentication, and end-to-end encryption. It is also highly rated for its transparency on hidden fees and exchange rates.

Customer Service

MoneyGram

MoneyGram provides 24/7 customer support via phone, live chat, and email. The availability of in-person assistance at its agent locations can also provide a more personalized service for those needing help.

Wise

Wise offers email support and live chat. While its digital-first approach often results in faster service and better response times for online inquiries, users who prefer phone support or face-to-face help might find MoneyGram more accommodating.

The Verdict

There’s no denying that both services are at the top of their field. Choosing one usually comes down to a user’s preference or needs.

• MoneyGram is ideal if you value speed, cash pickups, and global reach. It is particularly well-suited for regions with less online banking access.
• Wise, with its transparency, ensures you consistently get the mid-market exchange rate in your transfers. Its online focus makes it an excellent choice for those who prefer the convenience of digital transfers.