Despite the fact that a few years ago the online money transfer market was revolutionized by such companies as TransferWise, TransferGo, etc., still more than 70% of money transfers in the world are still sent via Western Union or MoneyGram. Both companies are the most well-known and recognizable money transfer providers in the world and have been operating for the longest time. However, Which one is the more profitable for you – Western Union or MoneyGram? Read our review of the pros and cons of each company and make the right choice
Western Union is the world’s most famous and largest money transfer company. The main advantage of the company is many options to send and receive a transfer. You no need bank account to send or recieve transfer with Western Union — you can pay and receive the transfer in cash. WU also has the largest network of agent locations around the world + 550,000 agent locations in 200 countries. Recently, the company has also started supporting online transfers.
MoneyGram is the second largest money transfer company in the world after Western Union. Both companies have similar operating principles and methods for sending and receiving transfers. MoneyGram also has a very extensive network of agent locations — more than 350,000 in 200+ countries. Online transfers are also available, but not relevant for all destinations.
Both companies are a great solution if you need to pay or receive a transfer in cash. The transaction processing time in both cases will not take more than 5 minutes. However, MoneyGram is often a better option, due to lower fees and a better exchange rate.
Our recommendation: Despite the fact that MoneyGram is still superior to Western Union in several factors, you should compare commissions and exchange rates before sending a transfer. In some cases, WU can offer better terms.
MoneyGram wins the comparison with a score of 77/ 100 versus 76 / 10 for Western Union
Based on the customers preferences and their experience, Western Union leads with a slight difference. On the Trustpilot website, where users can leave a review after using the service, Western Union scored 3.8 out of 5, and MoneyGram scored 3.7.
| Winner | |
What we like about MoneyGram
| What we like about Western Union
|
Cons of MoneyGram
| Cons of Western Union
|
WesternUnion was founded in 1851 as a Telegraph company, but eventually transformed into a financial giant in the field of international money transfers. Today, WU allows you to send money from 70 countries and get a transfer to 200 countries around the world.
MoneyGram International, Inc.is an American financial company engaged in operations on international financial markets. The company is headquartered in Dallas. The company was founded in 1940.
| Payment Methods | Minimum and maximum transfers | Delivery methods | Transfer speeds | Countries and currencies | |
|---|---|---|---|---|---|
| Bank account, debit or credit card, cash | Depends on country | Bank account, cash, e-wallet, pre-paid card | in minutes to 5 days | 200+country | |
| Bank account, debit or credit card, cash | Depends on country | Bank account, cash, | in minutes to 5 days | 200country 45+ currencies |
Moneygram
MoneyGram allows you to send money online to more than 20 countries directly from the official website or via the MoneyGram app (available for both Android and iOS). For all destinations, you can receive a cash transfer, and for a limited list of countries, you can send money to a Bank account, mobile wallet, or prepaid cards. You can also pay for the transfer in cash at the office or with a debit or credit card. Payment by Bank transfer is available from European countries (Sofort) and in the USA or Canada via Interac online
Western Union
Western Union is not just an online money transfer service. Customers can choose to send and receive a transfer in cash, top up their mobile number, or use a prepaid card. You can pay directly with a debit or credit card (not available for all countries), and from Europe you can send money using a local Bank transfer using an online payment system ( SOFORT, Trustly or iDEAL). You can also pay bills in some countries (USA and Latin America).
MoneyGram
MoneyGram fees vary greatly depending on the transfer amount, the countries you’re sending money from and to, and of course the pay-in and pay-out methods. You will get minimum fees if you send money online paying for your transfer with a credit or debit card or Sofort Bank transfer. In some cases, the fees may be equal to ” 0 ” (for example, for transfers from European countries to Ukraine or Russia). If you send to a Bank account, This is usually cheaper than sending money to get cash. For example, if you send $ 1,000 from the United States to the Philippines from a Bank account, you will pay a$ 4.99 fee; if you pay with a credit or debit card, you will pay $ 10.
Western Union
Western Union fees depend on the transfer amount, the country you send money to, and the pay-in and pay-out methods you choose. As a rule, the standard WU fee for online transfers from a Bank account starts at 5 USD, but for some countries, the fees may increase to 45 USD when paying with a credit or debit card and for cash pick up.
However, when sending money to Mexico or India, you can often get a zero fees, since the company make profit via exchange rate margins
As a rule, you always pay more if you send money in cash or pay with debit/credit card and choose cash pick up delivery methods
Western Union
For many ways to money transfer, Western Union can offer zero fees if you make a wire transfer
The exchange rate is one of the most important parameters to consider when choosing a company to send an international transfer. After all, it will depend on the exchange rates, what amount will eventually be credited to the recipient’s account.
MoneyGram
The main revenue item of MoneyGram is the difference in exchange rates when converting currencies. The company’s margin above mid-market exchange rates, can sometimes exceed 5%, which is quite noticeable, especially when transferring large amounts. For example, when converting USD to Euro.
Western Union
As with other money transfer providers, Western Union puts its margin in the average market exchange rates. For international transfers, expect a surcharge of 6% of the exchange rate + other fees. In some cases, Western Union’s margin may be as high as 20% above mid-market exchange rates. Rates vary depending on how you pay and receive money. Exchange rates are sometimes better if you send large amounts of money.
In addition, WesternUnion mentions the following on its official website:
“… The exchange rates indicated on the website are approximate” and the actual exchange rate will be determined at the time of transfer. Western Union calculates its rate of exchange on the basis of available on the market of interbank courses plus a margin “.
Consider an example: Suppose we need to send € 1,000 from Germany to Russia online
Sending € 1000 from Germany to Russia via bank transfer
Bank transfer | Bank transfer | |
|---|---|---|
| Transfer fee | $0 | $3,99 |
| Exghange Rate | 1 €= 1.0516$ | 1 €= 1,0781$ |
| Transfer speed | 1-3 days | in 10 minutes |
| Total received | $ 1051.59 | $1.078,13 |
MoneyGram Wins
Sending $ 1,000 from Europe to Russia with MoneyGram can result in savings of around $ 30 compared to Western Union.
MoneyGram
As with Western Union, the delivery speed of a MoneyGram transfer varies depending on the payment method and how funds are received. Cash transfers are usually paid out within minutes (but this leads to higher fees and poor exchange rates). Transfers sent from European countries via the Sofort payment system can also be processed very quickly. Online transfers from a Bank account to a Bank account via MoneyGram take from two to four business days.
Western Union
The processing speed depends on transfer delivery methods. If the transfer must be paid in cash, the processing time will take 5-10 minutes. Transfers sent from a Bank account may take up to five days or longer, depending on the country of receipt.
It is difficult to clearly identify the winner, since both companies offer almost the same conditions. Therefore, from the point of view of transfer delivery speed, it is a draw
Although Western Union and MoneyGram may look exactly the same at first glance, you can get a better exchange rate in MoneyGram, which is especially important for transfers of large amounts.
Western Union offers a very complex structure for generating commissions and fees, but as a rule, for popular destinations and if you send a wire transfer, you can get a zero Commission rate.
As for the coverage and number of offices and the convenience of receiving a transfer, the 500,000 Western Union representative offices around the world look much more impressive than The 350,000 MoneyGram representative offices.
Our recommendation: Companies are very similar to each other. Despite the fact that MoneyGram is still superior to Western Union in several factors, you should compare commissions and exchange rates before sending a transfer. In some cases, WU can offer better terms.
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