MoneyGram vs. Western Union

When you need to send money overseas, it often makes sense to use a money transfer operator. While many banks offer international wire services, they tend to charge higher fees and have longer wait times. However, money transfer services aren’t one-size-fits-all. They can vary greatly in the quality and value they offer.

As you begin to shop around, two global leaders you’ll likely come across are Western Union and MoneyGram. Both are long-standing companies with sizeable market shares and good reputations. But which is the better fit for your situation?
Read on for a closer look at how MoneyGram vs. Western Union compare in terms of reach, costs, speed, digital presence, and security.

Key takeaways

• Western Union has been around almost twice as long as MoneyGram.
• Both companies’ agent networks, fees, transfer speeds, delivery methods, and security are comparable.
• Western Union stands out due to its robust online platform, rewards program, and customer ratings.
• The right fit for you will depend on your preferences and the details of the transfers you need to send.

Comparing reach and availability

Western Union and MoneyGram are two of the largest money transfer services in the world. While Western Union has deeper roots, dating back 175 years, MoneyGram has a notable history of about 85 years.

• Both brands offer coverage in over 200 countries and territories.
• MoneyGram has over 470,000 agent locations, while Western Union has hundreds of thousands of agent locations around the globe for you to choose from.

Both companies specialize in helping customers quickly send money across borders, but also offer domestic transfers, money orders, mobile top-ups, and bill pay services. You can access the services of both companies through their websites, mobile apps, and vast agent networks—as well as through partner retailers, like Walmart and CVS Pharmacy.

Western Union vs. MoneyGram: Fees and exchange rates

When it comes to costs, both MoneyGram and Western Union both charge transfer fees and exchange rate markups.

Transfer fees

The transfer fee is a fixed dollar amount that gets added to your transfer at checkout. For example, if you’re transferring $1,000 with a $5.99 transfer fee, you’ll owe $1,005.99.

The transfer fee amount for Western Union and MoneyGram varies depending on several factors, including how you initiate the transfer, your payment method, the transfer delivery method, the transfer amount, your country, and the location of your recipient.

Exchange rate markups

An exchange rate markup is a margin added to the middle-market exchange rate when a transfer requires a currency conversion. The size of the margin varies depending on the details of a transfer, such as the payment method and delivery method chosen.

While the markup doesn’t directly impact the amount you pay out of pocket at checkout, it does determine the amount your recipient receives.

Cost comparisons

Comparing the costs of MoneyGram vs. Western Union overall is challenging because there aren’t set transfer fees and exchange rate markups that apply to all transfers. In some cases, MoneyGram offers a better deal on a transfer. In others, Western Union comes out ahead. For a true cost comparison, use price estimator tools from either provider before you send.

Transfer speed and delivery options

Western Union and MoneyGram offer various delivery options, including transfers to bank accounts, debit cards, mobile wallets, and cash pickup locations. Additionally, MoneyGram offers home deliveries in certain areas, which may be a differentiator for some customers.

The two companies also have similar transfer speeds. Transfers that don’t involve bank accounts are often completed within minutes by both companies. For example, that can include transfers funded with a debit card, credit card, or cash and delivered to a debit card, mobile wallet, or agent location. Sending money from a bank account, however, generally takes up to four business days, while sending money to a bank account often takes up to two business days.

Overall, MoneyGram and Western Union offer comparable delivery options and transfer speeds. That said, if speed is a top concern for a particular transfer, you can set it up with both companies to see which offers faster delivery.

Comparing the digital experience

Western Union and MoneyGram each have user-friendly websites and mobile apps that allow you to send money without leaving your couch. You simply create an account and enter the basic information about the transfer and your recipient. From there, the process is streamlined and easy to navigate.

However, Western Union’s digital presence is more built out than MoneyGram’s. Along with the basic service offerings, you’ll find pages for the company’s prepaid card, managing alerts and reminders, and more.

Western Union’s rewards program is also noteworthy because you can earn points on every transfer and use them to cover future transfer fees. Plus, you get access to member-only discounts and deals with third-party retailers.

Both companies make it easy to send and manage transfers online, but Western Union’s digital platform is more comprehensive.

MoneyGram vs. Western Union: Reliability and trust

Western Union and MoneyGram are reputable money transfer service providers. They both follow industry best practices for keeping transactions secure, such as using encryption technology, fraud detection, and identity verification protocols.

Both companies currently fare well in public reviews on third-party platforms, although Western Union tends to have slightly higher scores and a significantly higher volume of ratings.

Why choose Western Union vs. MoneyGram

Both Western Union and MoneyGram can help you securely send and receive money across borders from almost anywhere in the world. Western Union stands out as the larger provider with a more comprehensive digital presence and a better rewards program. However, MoneyGram isn’t far behind, also offering a vast retail network, competitive pricing, and fast delivery times.

The better option for you will depend on the specific transfers you need to make, considering transfer amounts, destination countries, funding methods, and delivery methods. Before making a decision, you can enter transfers into the price estimators of both companies to compare the actual costs, transfer times, and digital experiences.