Remitly Vs Wise (Formerly Transferwise)

Which one is cheaper option to send money?

Remitly Vs Wise (Formerly Transferwise)

    

Background

Remitly and Wise are two completely online companies that provide sufficient money transfer services. Although they might be similar in structure, this article will break down their similarities and differences to help consumers pick a company that best suits their needs.

A Remitly Overview

           

Founded in the United States, Remitly allows customers in the U.S., Canada, Australia, the United Kingdom, and the Eurozone to send money to over 40 countries around the globe. Due to their online platform, their service is more efficient, faster, and more affordable than many competitors. Remitly helps customers send money using their smartphone, tablet, or online through the Remitly online platform.

A Wise Overview

Originating from the UK, TransferWise is an online international money transfer service that enables customers to send money to more than 70 countries. Wise usually has great exchange rates that beat banks and competitors and allows for easy transfers to bank accounts. This startup is quickly becoming a popular choice for customers sending money overseas. Wise also allows users to send money using their smartphone, tablet, or online through their website.

Remitly Payment Methods

With Remitly, users can fund the transfer using:

  • Bank transfer
  • Credit Card
  • Debit Card
  • The daily limit that Remitly allows users to transfer is $999 CAD. Waiving this limit is possible if the customer decides to provide additional information to Remitly. This can be providing the reason for the transfer or proof of how the transfer is being funded.

    The recipient of the transfer can get the money through a deposit into a bank account, deposit into a digital wallet, or picking up cash at a nearby partner money transfer facility. The “Express” option that provides instant transfer of funds may be a preferred option if a transfer is urgent.

    Wise Payment Methods

    Four options are available with Wise when funding a transfer to internationally:

  • Credit card
  • Debit card
  • Bank account transfer
  • Wire transfer
  • TransferWise has one of the highest daily sending limits in the online money transfer industry at up to $1 million per day for both business and personal accounts. For ACH transfers, customers are limited to up to $15,000 per day. $2,000 per day or $8,000 per week is the limit for using a credit or debit card.

    Sending money from an account with an address in Nevada, Hawaii, Guam, or the Virgin Islands, will limit the transfer to $50,000 per day. Sending from addresses from these regions through an ACH transfer decreases the limit to $10,000 per day.

    Wise offers recurring transactions, through the TransferWise app. This allows customers to send money to other countries automatically.

    Fees

    Remitly Fees

    The fees Remitly charges to transfer money depend on several different factors. First of all, the fees will depend on:

  • How much money is being sent
  • The currency the money will be converted to
  • Where the money is being sent
  • Other fees are dependant on the way the money is being sent, and how the customer is funding the transaction. Remitly users can send money their money either through an Economy or Express option. The economy option often has lower fees (including no fees for your first transfer) and better rates. The catch is that it takes three to five business days for transfers to send. With the economy option, some countries may not have a fee at all, but others may still have a fee of (usually) $2.99 CAD.

    In the case that the transfer is funded with a credit card, customers in Canada, Australia, and the United States will also be given a processing fee. Additional fees may also be charged directly by the user’s credit card company, but this is not Remitly’s decision - these fees are dependent on your bank’s policy.

    Other situations in which Remitly will charge you additional fees may include sending money to an international recipient, but they receive the money in a different currency.

    Express transfers have lower exchange rates and fees, but they happen almost immediately. This option is best for those who need their money to reach its destination in short periods of time. This fee starts from $3.99 CAD and only goes up depending on the country you are sending money to.

    Wise fees

    Wise is very transparent when it comes to charging fees. customers can expect to pay fees that depend on a variety of factors. These charges may be depends on:

  • How much money is being sent
  • The destination of the transfer
  • How the money is being received
  • There are different fees for different scenarios, but overall, Wise is very transparent about its fees. Customers will always be able to see the total cost prior to finishing the transaction.

    Exchange Rates

    Remitly’s rates

    Remitly’s exchange rates often come close to other online money transfer services. However, their rates may be dependant on the type of transfer the customer wishes to proceed with (economy or express). Remitly’s rates typically come in between 0.5% and 2% worse than general market rates. The lower rates and fees are how the company makes money.

    Wise’s rates

    TransferWise’s rates are very competitive when compared with other similar services. The company uses a mid-market exchange rate. Their rates are often similar to those of banks. TransferWise also allows users to lock in exchange rates when sending money to certain countries.

    Depending on the destination of the transfer, it may take between 24 and 48 hours for the transaction to process. The customer’s rate is locked in starting from the day the transfer began. If the transfer is not fully funded by the end of the lock-in period, customers may be charged a mid-market rate. Though this may not necessarily be a bad thing - this rate rises and falls, so customers could end up paying more or less than expected from the initiation of the transfer.

    Security

    Remitly’s security

    Remitly is well-known for its security and trustworthy online money transfer services. The company is a fully licensed money transmitter and is a registered Money Services Business with the United States Department of the Treasury. Remitly also permitted to operate throughout Canada except for the province of Quebec (although this is coming soon), as well as the United Kingdom and Ireland.

    Remitly takes a lot of precautions and has very good security measures in place, in order to protect customers’ money and information. These actions include but are not limited to: verifying accounts, using manual and automated fraud detection techniques, requiring customers to prove their identity with proper documents, and ensuring that all transactions are protected by strong online security measures, including 256-bit SSL encryption with a 2048-bit signature.

    The company is used and well-known by millions of customers each year. Their popularity and financial strength have allowed Remitly to attract well-known investors throughout the globe - including TomorrowVentures, Jeff Bezos, Trilogy Equity Partnership, QED, and DJF.

    Wise’s security

    TransferWise is secure and reliable. The service is fully licensed and regulated by various global watchdog agencies. These agencies monitor and track TransferWise to ensure they are transparent about their purpose and fees while delivering on what they promise to do (send money from one country to another) without scamming its customers.

    Ease of use

    Both Remitly and Wise are entirely online. This allows for customers to send money from anywhere in the world and anytime during the day - as long as they have a connection to the internet. Transfers can be done with both companies in around 5 steps!

    Conclusion

    Overall, Remitly and Wise are both fairly similar. They each have their fair share of pros and cons. Regardless of the decision that a customer decides to make, both options are safe and reliable. Customers should also consider other options when it comes to sending money internationally:

    Other Comparison

    Banks

    Banks are reliable and efficient. They have been the main source of money transfers for billions of people for many years. This option may not be the most convenient method for travellers because customers have to use a specific bank branch to transfer and receive money. Banks also usually charge higher fees than other online money transfers companies. This may significantly increase the cost of a transfer.

    Traditional Money Transfer Services

    Despite banks, specialized agencies such as Western Union and Ria Money Transfer are often able to help customers transfer money with better rates and lower fees. These methods are usually more affordable and convenient for customers.

    These services allow customers to walk into a location, hand over cash and send money to someone in another country. The recipient will then need to travel to their nearest agent store to pick up the money.

    This option is used all the time because many of these companies put restrictions on users regarding how they can send and receive money and the amount that can be transferred. They may also charge additional fees for transfers, thus driving up the price.

    Other Online Money Transfer Services

    Using the internet to send money opened the industry to a wider group of consumers. Online money transfer services are more convenient and efficient since customers can send money without leaving their homes. They also usually offer a wider range of payment and delivery methods with more flexibility.

    These online services often do not offer traditional storefronts. This means that they do not have a high overhead in comparison to banks and brick-and-mortar transfer companies. They do not have to pay rent or maintenance costs for buildings, nor do they have to employ thousands of people. This is relevant since lower expenses and operating cost gives these companies the ability to charge lower fees and offer better rates for customers - making this option the most affordable for customers around the world. While the big and well-known companies such as PayPal and Western Union may not be the least expensive option, there are many start-ups and remittance services that are safe, secure, and cost less.

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