We get it. You work hard to help yourself and to send money to your familia back home. So why are you spending all your loot in fees and hidden costs? No time to do the research? No worries, we’ve done the dirty work for you. We reviewed the three largest providers who allow money transfers via mobile phones along with offering Spanish and English language options. See how Xoom, TransferWise and Western Union compare.
Coverage in Latin America & Caribbean
Western Union offers its services to all of Latin America and the Caribbean making it the most accessible to its clients anywhere in the Spanish-speaking world. Xoom and TransferWise are expanding every day so check their sites regularly if your country isn’t currently covered.
Fees & Exchange Rate
Fees and Exchange rates can vary by provider and by payment method. TransferWise is the clear winner here offering an exchange rate usually 2-3% higher than Xoom or Western Union. The better the exchange rate, the more money your loved ones receive. In addition, TransferWise’s overall fees were lower than Xoom and Western Union for money transfers to Mexico and Brazil.
Note: Exchange Rate based on June 15, 2016.
So why isn’t everyone sending money through TransferWise? Reason: TransferWise only offers bank-to-bank transfers meaning that both sender and receiver must have established bank accounts to give and receive funds. Xoom and Western Union offer more options (see “Payment and Money Pick Up” outlined below) .
Competition is increasing daily which works to your advantage. Taking the time to look for low fees and high exchange rates means more money making it to your family.
Payment & Pick Up Options
Do you prefer to pay in cash, credit cards or through bank account? Does your family have a bank account back home? All are important considerations. Both Western Union and Xoom permit cash pick up but only Western Union allows for cash deposits for money transfers.
Delivery Time
During emergencies, providers like Western Union and Xoom are great because they can deliver money almost immediately. Transferwise services take 24 hours but charge you the least.
Ultimately, do what is most cost effective and convenient for you and your loved ones abroad. Know you have options and don’t forget to:
1) Compare exchange rates.
2) Look for low fees! Don’t pay providers more than necessary. It is your hard earned money, not theirs!
