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Keep reading, and we’ll look at the details of the services offered by these companies, including the fees charged, exchange rate competitiveness, speed, locations served, and reputation with their customers.
Quick overview of Remitly and Wise
Remitly is a cross-border remittance provider founded in 2011 and headquartered in the Greater Seattle Area in the United States. So far, the company has over 3 million customers, and facilitates transfers from 17 countries to over 50 other nations around the world. Depending on the destination, Remitly recipients can have their funds deposited directly into their bank accounts, sent to a cash pickup location, deposited into a mobile wallet, or delivered to their homes.
Wise, formerly Transferwise, is an FCA-approved money transfer service launched in 2011 to help make international transfers affordable, quick, and simple. So far, Wise has served over 8 million customers and processes more than £4 billion in transfers monthly. It is one of the most well-known companies in the money transfers space.
Remitly and Wise - Cost
Finding a company with low transfer fees is a key part of ensuring you find a great deal when transferring money. Here’s how Remitly vs Wise shapes up.
Wise cleans up on fees and rates. The key win is on the mid-market exchange rates; while Wise charges a fee for transfers, Remitly also adds a markup to their exchange rates.
Wise has a varied fee structure comprising a fixed fee component and a variable fee component. But the key takeaway is the mid-market exchange rate offered. This means you don't lose out on any exchanges with Wise, you just pay them the fee for transferring.
Remitly’s transfer fees depend on how much you send and the delivery speed you opt for. If you send more than $500 and pay using your bank account with Remitly, you won’t be charged any fees. But Remitly also adds a margin to their exchanges. The markup is between 0.5% and 3.0% above the mid-market rate, depending on the currency pair. This means that the amount your transfer ends up costing will depend a lot on which currencies are involved.
Speed - Remitly vs Wise comparison
With some transfers, time is of the essence. If you need your money to arrive fast, here’s a breakdown of what to expect from Remitly and Wise.
Wise is faster than Remitly, with most transfers completed in minutes. However, you can pay extra for faster transfers with Remitly, if fast transfers aren't available to your recipient's country with Wise.
While most transfers are instant, Wise can take between one and three business days to deliver your funds. The timing is affected by the recipient’s bank processing speed as well as how you pay for your transfer. Paying for your transfer through the bank takes longer than using a debit or credit card.
Remitly has two transfer options: Economy and Express. The Economy option is slower, taking three to five days to be received. Express transfers usually arrive in minutes.
Remitly and Wise transfer limits
If you need to transfer a large sum to purchase a house or make a business investment, you'll need a provider with high transfer limits.
Wise wins again, with a high wire transfer limit of $1.2 million. Remitly has a much smaller maximum limit of only $25,000.
Both Remitly and Wise have no minimum send limit, making them useful for small transfers. However, if you need to send a large amount, Wise is the better option, with a maximum limit almost 50 times larger than Remitly's.
Product offering
The details of what each provider can actually offer you are very important.
Wise has the wider product offering overall, with varied payment options. However, Remitly covers more countries and currencies.
With payment options including bank transfer, wire transfer, debit and credit card, Apple Pay, Google Pay, and Paypal, Wise offers the most versatility when making payments.
However, Remitly has more payout options. These include bank transfer, cash pickup, mobile money, and home delivery.
Remitly services more countries than Wise, at 145. In contrast, Wise only services just over 80.
Additional features
Where Wise really pulls ahead is its additional features. As a combined remittance service and bank, Wise allows you to open a multi-currency bank account, capable of holding up to nine different currencies at once. You also get access to a payment card that can be used overseas free of charge, so long as you have enough of the correct currency in your account.
As a remittance-only service, Remitly can't compete.
Ease of use
Transfers should be simple, so you can manage your money easily.
Wise can't be beaten on its ease of use.
The Remitly site isn't the easiest to navigate, and the app has its issues.
Wise keeps everything as easy as possible, with a simple display of how to make your transfer, and a clear breakdown of the currencies you hold in your account.
Safety and trust
Staying safe is vital when handling finances.
Both providers are safe to use, but the transparency of Wise's fee structure gives it the lead.
Like all the providers we recommend, Remitly is fully regulated to make financial transactions. It also employs a multi-level security system when you log in, helping keep your finances safe.
Wise also has full regulation, and you can take advantage of their multi-factor authentication when you log in. However, Wise's transparent fee structure gives it the edge, and you can work out exactly how much your transfer will cost before you make it by using the on-site calculator.
You should only ever use regulated providers to transfer money. If a provider is not regulated, it’s likely to be a scam.
Remember: We will only ever recommend regulated financial institutions.
Customer feedback
See what others have to say.
This is the only area where Remitly takes the win. Users quote the reliable app and affordable fees as the main benefits, while others state they experienced hefty delays at times.
Wise reviews favor the platform's ease of use and transparent fee structure, but some accounts have been closed for security reasons without notice.
Remitly vs Wise - Wise is our recommendation
Wise is our overall winner, taking all of the above into account. It has well-established transfer routes, high transfer limit, and processes all payments at mid-market rates. This ensures you save more when making transfers abroad and gives it an edge over Remitly, which charges low fees but ends up being pricier due to the margins applied.
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