Ofx vs Wise
Looking for a way to send money overseas? Find out which is the better option for you.
Overview
Western Union and Transferwise are two trusted and well-used money transfers services in the industry. But when it comes to remittance services, each customer has their own priorities and requirements. In this article, we’ll be comparing two well-known companies in the industry - Western Union and Transferwise.
Western Union Overview
Western Union is one of the best-known and oldest money transfer services in the world. Money was still being sent on horseback when the company was founded in 1851! Since then, the company has grown and expanded to branches across the world, as well as fully online money transfer services. Western Union allows customers to send money to more than 200 countries worldwide. The company is best known globally for their cash transfers through the agent network. Branches are placed globally and customers can send money anywhere around the world!
TransferWise Overview
Founded in the UK, TransferWise is an international money transfer service that enables customers to send money to more than 70 countries - completely online. Transferwise usually has great exchange rates that beat banks and competitors. They allow for easy transfers to bank accounts. The company is becoming a popular choice for customers to send money overseas. Transferwise also helps users to send money using their smartphone, tablet, or online through their website.
Available payment methods
Western Union has five different payment methods:
Cerdit card -
Debit card -
Cash
Wise, formerly known as TransferWise, offers several payment methods to accommodate diverse preferences and needs for international money transfers. The most common payment methods include bank transfers, debit or credit cards, direct debit, SOFORT, and mobile payment options such as Apple Pay and Google Pay, depending on the user's location.
Fees
On any transaction, OFX does not impose any transfer fees. As a result, they are one of the most cost-effective ways to send money overseas. If you send money abroad frequently, it might save you a lot of money.
A fee may be charged by a bank engaged in the transfer in some instances. OFX has no influence over whether or not you are charged a fee, thus they can't do anything about it.
Wise emphasizes transparency in its fee structure, which is influenced by factors such as the transfer amount, destination, and payment method. Transfer fees start from 0.33% of the transfer amount, with the exact fee varying based on the currency pair and the chosen payment method. For payment methods, bank debit (ACH) typically incurs lower fees, while wire transfers may include additional charges, such as a $6.11 fee for USD wire payments. Wise offers currency conversion starting from 0.33%, using the mid-market exchange rate without any markups. When receiving funds, domestic payments are free in most currencies, although there are exceptions like USD wire transfers, which may incur additional fees.
Exchange rates
When it comes to exchanging rates, it's crucial to know which one most businesses utilize. When you use a search engine to look up a rate, you'll see the mid-market exchange rate. This is the rate at which banks and huge organizations exchange significant sums of money - frequently in the millions. The rate you'll get while converting money won't be the same for the ordinary person. Because banks and money transfer businesses add a margin to the rate, this is the case. They profit from the transfer in this way. Many companies promise to provide no-fee transfers. They do, however, factor the cost into the conversion rate. It's concealed this way, but you still pay extra. Skrill Money Transfer, on the other hand, offers a somewhat lower exchange rate than the mid-market. As a result, whatever the real exchange rate is, that's what you'll get. For Skrill consumers, cost transparency is a significant bonus.
TransferWise’s rates are usually better or comparative when put against other similar services. The company has mid-market exchange rates. Rates are often comparable to those of banks. TransferWise also allows users to lock in exchange rates when sending money to certain countries. Depending on the recipient’s country, it may take between 24 and 48 hours for the transaction to process. The customer’s rate is secured from the day the transfer began. If the transfer is not fully funded by the end of the lock-in or security 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 may pay more or less than expected from the initiation of the transfer.
Security
Western Union has had over a century to build its safe and secure reputation - after all, it is one of the oldest companies in the money transfer business. The company is completely licensed to operate and is insured in multiple countries across the globe. It is very well known and trusted by the public.
TransferWise is completely secure and reliable. The service is licensed and regulated by various watchdog agencies around the world. These agencies track and monitor TransferWise to ensure they are transparent about their purpose and fees while delivering on what they promise to do (deliver money to the desired recipient) without scamming its customers.
Ease of use
Western Union is very easy to use. Not only does it have over 550,000 physical locations worldwide at any customer’s disposal, but it also has an online platform and mobile apps making the company’s services accessible to anyone with an internet connection. Western Union offers a service that allows customers to pay bills to certain retailers, along with prepaid cards allowing customers to send and receive money easily, or directly depositing pay cheques onto the card. The card can even be used as a debit card at many retailers, allowing customers to make purchases.
TransferWise is completely online. Customers are able to send money from anywhere in the world and anytime during the day - they just need to have a connection to the internet. Transfers can be done in just 6 steps! Overall, Transferwise is simple to use and accessible to nearly everyone.
Conclusion
To conclude, Western Union is a reliable service that has been in business for over a hundred years. Their multitude of locations makes them accessible globally. On the other hand, Transferwise may offer better rates and prides itself on transparency. Regardless of the decision that a customer decides to make, both options are reliable and safe. Customers should also consider other options when it comes to sending money internationally.