There is no doubt that Western Union has established itself as a leading remittance company, with more than 145 years of permanence in the market.
Since its inception, Western Union has enabled people without access to a bank account to make quick money transfers, which has been especially relevant to rural and immigrant communities in the United States.
According to recent data, during 2023, 12% of remittances sent from the United States to Latin America and the Caribbean were sent through Western Union, making it one of the leading money transfer services globally.
Today, sending remittances is essential in the lives of millions of Latin American migrants in the United States, so on this occasion we will address the best alternatives to Western Union, which solve problems such as high commissions, unfavorable exchange rates and complex processes, through more modern, accessible and fair financial services.
Why look for alternatives to Western Union?
For more than a century, Western Union has been dedicated to bringing families closer together through international money transfer services, with multiple delivery options and broad coverage.
But the truth is that over the years, services have appeared that fill Western Union's opportunities for improvement, such as:
High and variable commissions
One of the main difficulties faced by the immigrant community in the United States when sending money is the high money transfer fees, which considerably affect the final amount to be received.
For example, according to Western Union's price calculator, the cost to send $500 USD to Mexico through an agency and with cash collection would be $15 USD, with a dollar value of 18.17 MXN.
Uncompetitive exchange rates
In addition to commissions, international transactions involve currency exchange, which in turn can be detrimental to the recipient, depending on the exchange margin used.
In the previous example using the Western Union price calculator, the dollar price was MXN 18.17, compared to an official value of MXN 18.64, which would result in the recipient receiving MXN 9,081 instead of MXN 9,320.
Limits and restrictions
Another factor that could be detrimental to migrants sending remittances to Mexico are the limits and restrictions imposed, subject to factors such as method of payment, receiving country and identity verification.
Generally, for unverified users, the limit for sending cash by Western Union is $3,000 USD per transaction. Upon identity verification, this amount may increase.
Speed of transactions
The speed of Western Union money transfer depends on the method of payment and the method of delivery, which you can check below.
- Debit/credit card - cash: minutes
- Debit/credit card - bank deposit: 1-2 business days
- Bank account - cash: 3-5 business days
- Bank account - Bank account: up to 5 business days
- Cash in branch - Cash in branch: minutes
- Electronic money transfer - mobile wallet: up to 24 hours
Accessibility and convenience
Western Union is known for its extensive global presence, as well as the accessibility of its international money transfer services.
However, for these reasons, their lines and waiting times to send money are also increasing. If you need to speed up your transactions, this massive service may not be your most favorable option.
9 Alternatives to Western Union for sending money home
In case Western Union doesn't fit your needs, here are the best applications for sending money.
Comun
Comun is a comprehensive platform that not only allows you to transfer money in and out of the U.S., but gives you access to a complete and efficient financial experience that also offers easy access to cash.
Access support also available in Spanish 24/7, pay a transparent and fixed fee for international money transfers starting at 2.99 USD, with no hidden fees.
Ria Money Transfer
Ria Money Transfer is a service similar to Western Union. It has coverage in a large number of countries around the world and offers different payment and delivery methods, as well as partnerships with retailers such as Walmart.
Wise (formerly TransferWise)
Wise is a UK-based financial technology company that facilitates international money transfers and offers benefits such as multi-currency accounts and real exchange rates.
Remitly
Remitly is a fintech that operates mainly in the United States, Canada and Australia. It allows money transfers with the option of cash, bank account or mobile wallet. Although it is a good option for sending remittances to Latin America, it has uncompetitive commissions and exchange rates.
WorldRemit
WorldRemit is a global money transfer service with a presence in more than 130 receiving countries. In addition to the cash pickup and bank account options, it also allows transfers through phone recharges.
PayPal/Xoom
Xoom is a remittance company acquired by PayPal. It offers money transfers with multiple receiving methods, such as bank deposit, cash, mobile wallet or direct send.
MoneyGram
MoneyGram is a U.S. company specializing in international money transfers and peer-to-peer (P2P) payments. It has a presence in more than 200 countries and different payment options.
OFX
OFX is a company specialized in international money transfers and currency exchanges with presence in more than 190 receiving countries.
Revolut
Revolut is a UK fintech offering multi-currency digital accounts, international money transfers and investments.
How to choose the most convenient alternative for your remittances?
If you are still wondering which money transfer application is right for you, remember to consider the following factors before choosing the best alternative to Western Union:
Commissions and the real exchange rate
It is advisable to look for a payment service provider with fixed and clear rates, so that your family receives as much money as possible.
Money transfer speed
Although in several cases, most applications offer fast money transfers, in others, the waiting time could be detrimental to the recipient.
Shipping and collection methods
Make sure that the shipping methods suit your needs, whether by bank account, credit or debit card, or cash.
Coverage in your country
Verify that the money transfer service has coverage in Latin America, and that this does not imply extra fees for remittance.
Ease of use and customer support
It is important that you can communicate easily in case you have any problems. Choose an option with 24/7 support in English.
Safety and confidence
Verify that the service has the necessary permits and regulations of the places where it operates, as well as the necessary security measures to keep your data safe.
Comun: A great financial and remittance alternative designed for the immigrant community in the U.S.
Although Western Union is an excellent alternative to send money abroad, there are better options with more competitive and fairer conditions to make your money and your family's money work.
It is essential to research and compare each international payment service in order to choose the option with the most appropriate benefits for you.
Comun offers you a comprehensive service with which you can make international money transfers at a low cost, plus you will get a complete financial experience in your language.
- Easily open your account with your country's official documentation
- Make your first international money transfer for free and then just pay from 2.99 USD per transfer, up to the applicable limits.
- Deposit cash at more than 88,000 retail stores in the U.S.
- Keep track of your finances in a mobile application
- Get 24/7 support in English
Open your account today and learn about the best alternative to Western Union.
Frequently Asked Questions
Is it safe to use digital alternatives to Western Union?
Comun uses secure technology and complies with U.S. financial regulations to protect your money transfers. You can also choose from multiple payment and delivery options.
What are the hidden costs when sending money internationally?
International money transfers generate commissions, in addition to the currency conversion rate.
Can I send money to a country if I do not have a bank account?
With Comun, you can send cash even if you don't have a traditional U.S. bank account.
What do I need to open an account with services like Comun?
An Android or iOS compatible cell phone and an official ID from your country.
How long does it take to send money with these alternatives?
Money transfers with Comun are reflected in a matter of minutes or hours.
"Comun is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank; Member FDIC. The Comun Visa® Debit Card is issued by Community Federal Savings Bank, pursuant to a license from Visa U.S.A Inc. and may be used everywhere Visa Cards are accepted."
"Funds in your account are FDIC insured up to $250,000 by ownership category through Community Federal Savings Bank (CFSB), Member FDIC, in the event CFSB fails."
"A service provided by Service UniTeller, Inc. Service UniTeller, Inc. is licensed in all states that require a license."
"Remittance fees start at $2.99 but may vary. Please check the app for more details."
"Comun Inc. may earn revenue from the conversion of foreign currencies."
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