Honest Remitly Review: Speed, Pricing, Exchange Rates, and More

Remitly might not have been around since the days of telegrams and rotary phones, but it’s certainly shaking things up in the money transfer world. Founded in 2011, it’s the fresh face in the industry compared to stalwarts like Western Union, which has been around since 1851. 

But don’t let its relative youth fool you—Remitly has zoomed up the ranks with its slick online platform and a relentless focus on speed and efficiency.

Now here’s the million-dollar question: is it really the best way to send money internationally, or are there some sneaky pitfalls hiding in the fast lane? I mean, rising through the ranks is one thing, but being the best is a whole different game—especially in the fiercely competitive world of international money transfers. 

That’s what today’s post is all about. We’ll cover everything you need to know about Remitly and compare it with other popular options to see how it holds up against the other players in the game. 

Let’s dig in and find out if Remitly is a game-changer or just another player on the field.

Transfer Speeds: How Quickly Can You Send Internationally Money with Remitly?

The answer to that question will depend on several factors: 

• The transfer option you use.
• The payment method you use to fund the transfer.
• The origin and destination countries 
• How the person on the other end of the transaction wants to receive the money. 

Here’s how each of these factors can put the brakes on/speed up your transaction:

The Transfer Option Your Use

Remitly offers two transfer options: Express and Economy. Express is the way to go when speed is a priority– it can get your money into the recipient’s account in minutes. Economy transfers, on the other hand, can take 3 to 5 business days, depending on the other speed determinants I’ve listed above.

The Funding Method

“Funding method” simply means the payment method you use to initiate a transfer with Remitly. Remitly accommodates several options—bank transfer, debit card, credit card, or an e-wallet like PayPal— and your choice here will play a big part in determining how quickly the money you’re sending shows up on the other side of the world.

To help you make the best choice, I’ve ranked the most common funding methods from the speed demons to the slowpokes. Have a look: 

1. Cash Payments: The ultimate speedster. Fund your transfer at a partner location, and your recipient can pick up the cash almost instantly.
2. Debit Cards: The reliable sprinter. Transfers funded by debit cards are usually completed within minutes, especially with Express. Quick and efficient, just shy of cash payments.
3. Credit Cards: The speedy contender. Credit card transfers are just as fast as debit cards but often come with higher fees. Fast service with a side of extra costs.
4. E-Wallets (PayPal & Friends): The wild card. Transfers via e-wallets can be quick but are less predictable. Sometimes they’re faster than debit cards; other times, not quite.
5. Bank Transfers: The plodding tortoise. Bank transfers can take anywhere from a few hours to several days to process. Perfect for those who prefer a more relaxed pace.

The Origin and Destination Countries

The countries on both ends of the transfer can significantly speed it up or slow it down. Different banking systems, regulations, and even Remitly’s own partnerships in each country play a huge role in determining whether your transfer will zip through in minutes or take a bit longer.

Let’s take a closer look at how each of these factors can affect transfer speed: 

Sender’s Country: The Starting Line

The country you’re sending money from plays a huge role in how quickly the transfer process kicks off. Some countries have modern, efficient banking systems that process payments almost instantly. For example, if you’re sending money from the U.S. or the U.K., your transfer will be fast because their systems are pretty streamlined.

But in other countries, the transfer process can hit a few more speed bumps. Countries with older banking infrastructure or more complex regulations, like some in South America or Africa, may take longer to process outgoing transfers. 

Recipient’s Country: The Finish Line

Once your money is sent, it has to clear the banking systems of the recipient’s country. Again, the speed here varies depending on how fast and efficient the recipient country’s banking networks are. For instance, countries like the Philippines often have faster money transfer systems, especially when you’re sending to a mobile wallet or cash pickup location.

On the flip side, if you’re sending money to a country where the banking system isn’t as developed or where regulations are strict, the process might slow down. Think of countries like Venezuela or Cuba, where receiving international money can sometimes take longer due to extra compliance checks or slower infrastructure.

Remitly’s Partnerships

The speed of your transfer will also depend on whether Remitly has partnerships with banks in both the country you’re sending money from and the one you’re sending it to. Remitly works with a lot of banks and financial institutions around the world, and these partnerships help speed things up by tapping into existing banking networks.

When Remitly has partnered with local banks in both countries, transfers are usually much faster because they can use those banks’ networks to streamline the whole process. But if there aren’t partnerships in place, transfers can take a bit longer.

Here’s why:

When there are partner banks on both ends of the transaction, Remitly creates direct “corridors” between those countries. Corridors are basically optimized pathways Remitly sets up between specific countries through partner banks and other financial institutions. These corridors take into account everything from banking regulations and local financial systems to integration with Remitly’s own technology.

There’s a lot of behind-the-scenes work involved, but I won’t bore you with the details. All you need to know is that these corridors cut out unnecessary regulatory steps and intermediaries, which means your money moves faster. Fewer steps and fewer intermediaries = quicker transfers!

This is one of the main reasons transfers between the US and the Philippines are faster than, say, transfers between the US and Nigeria. The US and the Philippines is actually one of Remitly’s fastest corridors because (among other things) they’ve got partner banks and payment networks in both countries. On the other hand, Remitly has fewer banking partnerships in Nigeria, so even though they’ve got US partners, things can slow down on the Nigerian side.

How the Recipient Wants to Receive the Money

There are several ways the person you’re sending money to can receive it, and their choice is going to determine how long it takes for them to get their hands on it. 

Here’s a breakdown of how different receipt methods can impact transfer speed:

• Bank Account Deposits: The classic and most common method. If the recipient opts to receive money via bank deposit, the transfer time will depend on the speed of the recipient’s bank. Whether the recipient’s bank is integrated with Remitly will also come into play –  If their bank is well-integrated, the transfer will be quick; otherwise, it may take longer.
• Cash Pickup: Remitly offers cash pickup options at partner locations. This can be incredibly fast—often, the recipient can pick up the cash within minutes of your transfer. The speed here really depends on how close the recipient is to one of these locations.
• Mobile Wallets: Sending money to mobile wallets (like GCash and PayMaya in the Philippines or M-Pesa in Kenya) is usually really fast. Transfers often happen within minutes, though sometimes there might be delays if the mobile wallet service isn’t running smoothly or fully integrated with Remitly.
• Airtime Top-Up: In some cases, Remitly allows transfers to be used for topping up mobile phone credits. This is typically instant and can be a convenient option for recipients needing to stay connected.
• In-Person Delivery: In select locations within the Dominican Republic, Philippines, and Vietnam, you might also have the option for home delivery services, where an agent delivers the funds directly to the recipient. This is less common and generally slower compared to digital methods.

Remitly’s Pricing: How Much Do International Transfers Cost?

Again, it depends. As much as I’d love to give a straight answer, the truth is that the amount you end up paying in transaction fees will be determined by these three factors: 

• The transfer option you use
• The payment method you use
• Whether there are receiving fees. 

Here’s how each factor affects the cost of international transfers with Remitly. 

The Transfer Option

We’ve touched on this earlier, but we focused more on speed. In this section, I will focus strictly on the cost implications of choosing either Express or Econony to give you a clearer idea of what you might end up paying in transaction fees. 

Here’s the lowdown:

• Express transfers: Higher fees due to the expedited service. On average, you might pay anywhere from $3.99 to $9.99 depending on the destination country and the amount you’re sending.
• Economy transfers: Transfers can sometimes be fee-free (especially for first-time users) or come with fees as low as $1 to $3.

The Payment Method (AKA, the Funding Method)

The funding method you pick doesn’t just affect how quickly your money gets to the other side—it also determines how much you’ll shell out in fees. And because there are a bunch of third parties in the mix—banks, credit card companies, payment processors, and e-wallet services—the fees can vary.

I wish I could give you exact numbers, but I’d be lying if I said I had them all figured out. What I can do, though, is give you a handy ranking of which payment methods tend to be the priciest and which ones are easier on your wallet:

1. Credit Cards: The spendy option. Usually the most expensive due to added fees from both Remitly and your credit card issuer, which may charge a cash advance fee or foreign transaction fee (unless of course, you’ve got one of those nifty no-foreign transaction fee credit cards.)
2. E-Wallets (PayPal, etc.): These can also be expensive, with varying fees depending on the e-wallet provider and processing times
3. Debit Cards: Middle of the road. Not too bad, but definitely not the cheapest option.
4. Cash Payments (at Partner Locations): Decently priced with the added perk of speed. A solid choice if you’re in a rush.
5. Bank Transfers (ACH): The budget-friendly option. Usually the least expensive, though they tend to be slower.

Receiving Fees

Depending on where your recipient is and how they choose to get the money, they might run into some extra charges. For instance:

• Some places might slap a fee on cash pickups.
• Certain mobile wallet services might charge a little something for receiving funds.
• Banks could tack on a fee for incoming international transfers.
• If you’re opting for home delivery, some locations might add a delivery fee.

On the bright side, methods like bank-to-bank transfers and airtime top-ups usually don’t come with any extra receiving fees.

You probably won’t need to worry about covering these fees yourself, since they’re typically the recipient’s responsibility. But knowing about them can help you give your recipient a heads-up on cheaper or fee-free options. Or, if you’re feeling extra generous, you can include the fee in your transfer so they don’t have to dig into their own pocket!

Remitly’s Exchange Rates: How Currency Conversion Works

The exchange rate is a big deal in international transfers. It’s the magic number that turns your dollars into yen, pesos, or any other currency your recipient is using, and it determines how much your money’s worth in the recipient’s currency.

To understand how Remitly’s exchange rates work, you need to know your way around these two concepts: 

• The mid-market rate: Think of this as the “true” exchange rate. It’s the midpoint between what banks are willing to pay for a currency and what they’re asking to sell it for. For example, if banks buy euros at 1.10 USD and sell them at 1.12 USD, the mid-market rate is 1.11 USD. This rate isn’t typically accessible to retail customers like you and me– it’s usually reserved for larger transactions between banks and financial institutions. You and I get a rate with a markup, speaking of which… 
• The market rate: This is the rate you see quoted online or at currency exchange places. It’s influenced by the mid-market rate but includes extra costs and markups. For instance, a currency exchange service might offer you a rate of 1.08 USD for euros, even though the mid-market rate is 1.11 USD. This rate includes their profit margin, and it’s what’s usually available to retail customers.

Here’s an example to help make things clearer. Let’s say you’re sending $1000 to a friend in Europe.

• Mid-Market Rate: If the mid-market rate is 1.11 USD/EUR, your $1000 would be worth approximately 900.90 EUR.
• Market Rate: If the service you use offers a rate of 1.08 USD/EUR, your $1000 would be worth about 925.93 EUR.

The difference between the mid-market rate and the market rate is where the service makes its profit. In other words, the market rate includes a markup that affects how much your recipient actually gets. So, while the mid-market rate is the baseline, the market rate is what you actually get when exchanging money, which might be less favorable due to added costs.

Now that you’ve got that foundational knowledge figured out, let’s look at how Remitly handles exchange rates. 

Remitly’s Exchange Rates Explained

Remitly typically adds a markup ranging from 0.5% to 3.0% above the mid-market rate, depending on the currency pair involved. For instance, if the mid-market rate for USD to EUR is 1.11, Remitly might offer you a rate of 1.08 or 1.10. This markup covers their costs and ensures they make a profit. 

It’s not the highest markup you’ll come across, and neither is it the lowest in the market.

How Does Remitly Compare to Other Money Transfer Services?

No review is truly complete without sizing up the competition. So before we call it a day, let’s find out how Remitly stacks up against other heavyweight contenders: Wise, Western Union, and PayPal.