Wise vs MoneyGram

Wise Vs MoneyGram

Updated

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🌍 Stuck between choosing Wise and MoneyGram for your money transfers? We’ve got your back!

MoneyGram impresses with its global reach and convenient cash collection and deposits. However, when it comes to transfer speeds and costs, Wise takes the lead. But is there more to it?

In this comprehensive comparison, we’ll explore the fees, exchange rates, safety, transfer speeds, availability, customer reviews, and more of Wise and MoneyGram.

Let’s dive into our detailed comparison and find your ideal money transfer partner! 💸✨

Overview

WiseMoneyGram
New user incentive
Fees and costs🟢
Safety🟢🟢
Transfer speed🟢
Transfer limits🟢
Ease of use🟢🟢
Customer reviews🟢
Availability🟢
Try WiseTry MoneyGram

Wise Vs MoneyGram Company Comparison

Wise

Wise was established as TransferWise in 2011 as an international money transfer company specializing in affordable bank transfers. It now goes by the name Wise and has over 10 million customers who use personal and business accounts to manage over 20 currencies across 80+ countries. 

New customer incentives: Wise’s referral program allows you to invite three friends with a signup link. Once they sign up with the link, they can make their first transaction for free, as long as it’s under £500. When the three people you referred transfer over £200, Wise pays you up to £50.

See our review of Wise.

MoneyGram

MoneyGram provides international money transfers for individuals and businesses. It offers its users 400,000 cash pick-up locations which are ideal for recipients who prefer to receive their money in cash. Some payments can even be made at a physical location via a kiosk depending on the country. 

The company is available in 200+ countries which provides users with an incredible worldwide reach. MoneyGram also offers services such as bill payments and money orders.

If you need cash pick-up options and the ability to transfer money to over 200 countries, MoneyGram is the best option. However, Wise specializes in direct bank transfers which can be more affordable for large sums of money. 

See our review of MoneyGram.

Fees And Cost Comparison

MoneyGramWise
FeeVaries + currency conversion fee0.5% to 1%

Wise

Wise has a standard transfer fee of 0.5% to 1% of the total transfer amount. The fees will vary depending on the amount you’re transferring and the payment method used. However, the fees are transparent and you’ll always be given a breakdown of costs before you confirm transactions. 

MoneyGram

MoneyGram’s fees are higher compared to Wise’s and the fees can vary based on the payment method you use. The company also charges a separate fee for currency conversion.

Wise is the clear winner for affordability, offering lower fees and a more transparent fee structure than MoneyGram.

Exchange Rate Comparison

Wise

Wise uses the mid-market rate which is the exchange rate used by banks and other financial institutions daily. It doesn’t add a markup to the exchange rates which can help you save costs on large transfers. 

MoneyGram

MoneyGram’s exchange rates include a markup. This can mean that users receive a worse exchange rate when transferring money for cash pick-ups compared to depositing the money in a bank account. 

Wise is more affordable for its exchange rates compared to MoneyGram. There are no markups and they’re transparent about all fees. 

Safety Comparison

Wise

Wise is monitored by regulatory bodies worldwide, including FINCEN in the US, FCA in the UK, and ASIC in Australia. They have robust processes to keep your money safe, including thorough account verification and 2-factor authorization. Security is paramount to Wise and they ensure that your details are protected by encryption for logins and passwords.

MoneyGram

MoneyGram is licensed by the National Bank of Belgium, the UK Financial Conduct Authority, and many other regulators worldwide where it operates. 

Wise and MoneyGram are both considered safe options for transferring international funds.

Transfer Speed Comparison

Wise

Transfers with Wise can be completed within seconds with certain currency routes. The majority of transfers are delivered within one day with a smaller number of transfers arriving within two days. 

When you create a transfer, you’ll be provided with a delivery time estimation. You can also track the status of your transfer in the app or on the website. 

Moneygram

Moneygram’s bank transfers can take anywhere from a few hours up to two days to arrive. When you create the transfer, you’ll be given a delivery time and date estimation which can be tracked on the website or in the app. 

Cash collection payments can often arrive quicker, within minutes or hours. This varies depending on the country and currencies you’re dealing with. 

For direct bank transfers, Wise is the faster option as money can arrive in seconds with most transfers being completed within 24 hours. MoneyGram’s transfer speeds are slower unless you’re using the cash collection option. 

Ease Of Use Comparison

Setup

Wise and MoneyGram accounts can be opened in the apps or online. MoneyGram offers agent locations where people can go and receive help creating their accounts. 

Transfers

Wise and MoneyGram allow you to make payments in the apps or online. MoneyGram provides users with the option to visit a location for an agent to help them make transfers. 

You can fund Wise transfers with debit/credit cards or a bank transfer. MoneyGram transfers can be funded with debit/credit cards or with cash by going to a location that allows for cash deposits. 

Limits

The limits with Wise vary depending on the country, currency, and form of payment being used. If you exceed a transfer limit, you may be able to break it down into multiple smaller transfers. 

MoneyGram users can transfer up to $10,000 per month. Users in the US can send a maximum of $150,000 for each online transfer. This may be dependent on the limits set by the user’s bank account. 

App 

Users consider the Wise app to be easier to use with its user-friendly interface and straightforward transfer process. MoneyGram’s app has more mixed reviews with users experiencing technical problems. 

Customer Review Comparison

Wise

  • Trustpilot – 4.4/5 stars with over 185,000 reviews. 
  • Google Play Store: 4.1/5 stars with over 247,000 reviews.
  • Apple Store – 4.7/5 stars with over 44,000 reviews.

MoneyGram

  • Trustpilot – 4.4/5 stars with over 26,000 reviews
  • Google Play Store – 4.6/5 stars with over 78,000 reviews
  • Apple Store – 4.9/5 stars with over 372,000 reviews 

Wise users have complaints about long verification times and MoneyGram users are disappointed with the increasing fees. Some MoneyGram users also find that transactions take up to four business days, but Wise users were generally impressed with the transfer speeds. 

Both services have positive and negative reviews with the majority of reviews being positive. Aside from the Apple Store, Wise has far more online reviews than MoneyGram. 

Availability Comparison

Wise is available in 80 countries with 21 currencies supported. MoneyGram operates in over 200 countries, supports 47 currencies, and has 400,000 physical locations for cash collections and deposits. 

MoneyGram is best for availability as it operates in more countries and supports more currencies compared to Wise. 

Final Verdict

If you need cash collection/deposit options, MoneyGram is the better choice as Wise doesn’t offer these features. 

MoneyGram is also available in over 200 countries which makes it better for people who need a wider global reach compared to Wise. 

However, Wise is best for direct bank transfers. MoneyGram users are disappointed with the slower transfer times compared to Wise where transfers can be completed within seconds on specific currency routes or within 24 hours for most transactions. 

Wise also doesn’t charge a markup on the mid-market exchange rates whereas MoneyGram does. Therefore, Wise is a cheaper option. 

We hope that this post has provided you with valuable insights into what Wise and MoneyGram have to offer so that you can decide which service is best for you. 

FAQs

Is there a better solution than Wise? 

XE is a potentially better solution than Wise. It’s available in over 220 countries and supports 139 currencies. This makes it a fantastic alternative to Wise for users who want to transfer money in a wider range of currencies and to countries that Wise may not support. 

However, XE is more expensive as it charges an exchange rate markup and a $3 fee for payments less than $500. This may be worth it for users who want to transfer money to countries that Wise doesn’t operate in. 

Which is cheaper, MoneyGram or Wise? 

Wise is generally cheaper than MoneyGram, with lower fees and no markups on exchange rates.

How many currencies do MoneyGram and Wise support? 

MoneyGram supports 47 currencies, while Wise supports 21 currencies.

Sources

  1. https://www.trustpilot.com/review/wise.com
  2. https://play.google.com/store/apps/details?id=com.transferwise.android&hl=en&gl=US
  3. https://apps.apple.com/us/app/wise-ex-transferwise/id612261027
  4. https://wise.com/help/articles/2978049/which-countries-can-i-use-wise-in
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