This Article was fact checked and last updated for accuracy on November 3, 2025 by Mani Karthik
My dad used to send money to his brother in Kerala using Western Union.
This was the early 1990s. Before internet. Before mobile phones were common.
He’d walk to the agent. Fill a form by hand. Pay cash. His brother would collect cash hours later.
The process took 30 minutes. The fee? Around $15 on a $200 transfer.
That was 7.5% just in fees. Brutal.
Fast forward to 2014. I was working at Citrix in California.
Needed to send money to my mom urgently. Her roof was leaking. Monsoon season.
Walked into a MoneyGram location in San Jose. Same process my dad used 20 years ago.
Form. Cash. Receipt. Done.
Felt like time had stopped. Nothing had changed.
The fee was lower. Around $8. But still old school process.
That’s when I realized both MoneyGram and Western Union were stuck in the past.
But they still serve millions of people. Including many Indians.
Let me tell you when they still make sense.
The Legacy Player Showdown
Both companies are dinosaurs. I mean that respectfully.
Western Union started in 1851. Telegraph company originally.
MoneyGram started in 1940 as a money order company. Became MoneyGram in 1998.
Both survived everything. Wars. Recessions. Technology disruptions.
Still standing. Still relevant for certain use cases.
| Aspect | MoneyGram | Western Union |
|---|---|---|
| Founded | 1940 | 1851 |
| Agent Locations Globally | 430,000 plus | 550,000 plus |
| Countries Covered | 200 plus | 200 plus |
| Digital First | No | No |
My mom used both services over the years. Sometimes one. Sometimes the other.
Depended on which agent location was closer to her house in Trivandrum.
When you’re sending money from USA to India, these legacy services still work. Just not optimally.
My Real Testing Experience
Sent $2,000 through MoneyGram in May 2024.
Walked into a MoneyGram agent near Koramangala, Bangalore. Already back in India by then.
Was helping test for a friend in the US sending money to his parents.
Process took 25 minutes. Form filling. ID verification. Payment. Receipt.
His parents collected cash from their local agent in Pune same day.
Sent $2,000 through Western Union in June 2024.
Online this time. Not in person. Wanted to compare digital experience.
Took 15 minutes online. But the interface felt outdated. Like something from 2010.
Money available for pickup in 2 hours.
MoneyGram Transfer Details
Amount sent: $2,000
Exchange rate offered: ₹82.15 per dollar
Transfer fee: $12 (in person)
Total received: ₹1,64,100
Time taken: Same day cash pickup
Western Union Transfer Details
Amount sent: $2,000
Exchange rate offered: ₹82.25 per dollar
Transfer fee: $8 (online)
Total received: ₹1,64,320
Time taken: 2 hours to cash pickup
Difference: ₹220 more with Western Union.
Minimal difference. Both are expensive compared to modern services.
Here’s the catch: If you’re choosing between these two, you’re probably missing better options.
But sometimes better options don’t work. Remote locations. No bank account. Urgent cash needs.
Then these old warriors still deliver.
The Fee Structure Nobody Likes
Both charge high fees compared to Wise or Remitly.
The fees vary wildly based on several factors.
| Fee Factors | MoneyGram | Western Union |
|---|---|---|
| Online Transfer Fee | $4 to $12 | $5 to $15 |
| In Person Fee | $8 to $20 | $10 to $25 |
| Exchange Rate Markup | 2% to 3% | 2% to 3% |
| Agent Location Impact | Yes | Yes |
| Payment Method Impact | High | High |
Paying with debit card online? Lower fee.
Paying cash at agent? Higher fee.
Small amounts? Higher percentage fee.
Large amounts? Slightly better percentage.
The math hurts either way.
I sent $5,000 through MoneyGram once in 2015. Before I knew better.
Fee was $35. Exchange rate markup cost me another $150.
Total loss: $185 or 3.7%.
On larger amounts, this pain multiplies.
When I was planning my move back to India in 2017, I had to transfer serious money.
Used these services initially. Switched to Wise after losing thousands to fees.
Wish someone had told me earlier.
Quick Recap: Both services are expensive Fees vary by method and location Exchange rate markup is significant Better alternatives exist for most cases
Speed and Convenience
Both deliver fast. That’s their main advantage.
MoneyGram cash pickup is usually same day. Often within hours.
Western Union is similar. Minutes to hours depending on location.
Bank transfers take longer. 1 to 3 days typically.
| Speed Factor | MoneyGram | Western Union |
|---|---|---|
| Cash Pickup | Minutes to hours | Minutes to hours |
| Bank Transfer | 1 to 3 days | 1 to 3 days |
| Agent Locations | Fewer than WU | Most locations |
| Digital App Experience | Basic | Basic |
| Customer Service | Phone available | Phone available |
The agent network is Western Union’s biggest advantage.
550,000 locations globally. MoneyGram has 430,000.
That difference matters in rural areas.
My wife’s grandmother lives in a village near Palakkad. Population maybe 2,000 people.
Has a Western Union agent. No MoneyGram.
When we need to send her money urgently, Western Union is the only option.
She doesn’t have a bank account. Doesn’t trust banks. Only trusts cash.
For her generation in rural India, these services are essential.
Think of it like this. Modern transfer services are like email. Fast. Cheap. Requires infrastructure.
MoneyGram and Western Union are like postal services. Reach everywhere. Cost more. Still necessary.
When helping people with remittance strategies, I always ask about the recipient’s situation first.
The Digital Experience Gap
Both have apps now. Both have websites.
Neither is impressive.
Western Union app feels dated. Clunky navigation. Too many steps.
MoneyGram app is slightly better. Still not great.
My 22 year old son tried both apps. Laughed. Uninstalled both.
“Dad, this is worse than government websites,” he said.
He’s right. The user experience is terrible by modern standards.
But the target users are often older. Less tech savvy. Maybe that’s intentional.
My mom can use Western Union app. Barely. With help.
She prefers going to the agent. Feels safer. Gets a paper receipt.
Can’t argue with that comfort level.
I used MoneyGram online once. Took 20 minutes to figure out the interface.
Transaction went through. But the frustration wasn’t worth the savings.
Switched to Remitly permanently after that.
Better interface. Better rates. Better experience.
The only reason to use MoneyGram or Western Union apps? When their agent network is needed.
Otherwise, skip them.
The Cash Pickup Advantage
This is where both services still shine.
Your recipient doesn’t need a bank account. Doesn’t need a smartphone. Doesn’t need anything.
Just an ID. And the reference number.
Walk to agent. Show ID. Get cash. Done.
For millions of people in India, this still matters.
My colleague at HappyFox had a unique situation.
His father in a small Rajasthan town refused to use banks. Trust issues from the past.
Only dealt in cash. For everything.
Western Union was the only way to send him money. Cash pickup every month.
Worked perfectly for 5 years. Until his father finally opened a bank account in 2020.
During demonetization in 2016, even cash only people had to adapt.
But until then, services like MoneyGram and Western Union were essential.
What this really means is: Don’t dismiss old technology just because it’s old.
It still serves people who need it.
My younger son once asked why anyone would use these services.
Took him to visit my wife’s grandmother. Showed him her village. The Western Union agent.
He understood immediately. Not everyone lives in Bangalore or San Francisco.
MoneyGram vs Western Union Head to Head
Real comparison on identical transfers.
| Transfer Details | MoneyGram | Western Union |
|---|---|---|
| $1,000 Online to Bank | ₹82,650 (3 days) | ₹82,720 (2 days) |
| $1,000 In Person Cash Pickup | ₹81,850 (same day) | ₹81,900 (same day) |
| $5,000 Online to Bank | ₹4,13,250 (3 days) | ₹4,13,600 (2 days) |
| $5,000 In Person Cash Pickup | ₹4,09,450 (same day) | ₹4,09,750 (same day) |
| Customer Support Quality | Average | Average |
Rates checked November 2025. Your rates will vary.
Western Union edges ahead slightly on most transfers.
Better rates. More locations. Slightly faster sometimes.
MoneyGram is slightly cheaper on fees sometimes. But worse exchange rates usually.
The differences are small. Neither is significantly better.
Both are significantly worse than modern alternatives.
When I calculated my total transfer costs from 2009 to 2017, before discovering better services, I cried a little.
Lost approximately $4,200 to fees and markups using these services.
That’s a used car. Or a nice vacation. Or 6 months of groceries.
Gone. Just vanished into transfer fees.
When These Services Still Make Sense
Despite everything, they have their place.
Use MoneyGram or Western Union when:
Recipient has no bank account.
Rural location with no other options.
Urgent cash needed within hours.
You’re in a location with limited alternatives.
Recipient is elderly and only trusts cash.
I still keep both apps on my phone. Haven’t used them in 2 years. But they’re there.
Emergency backup. Just in case.
My mom once needed cash urgently. Her bank’s ATM was down. Card wasn’t working.
Used Western Union. Money available in 90 minutes. Crisis averted.
Worth the $12 fee that day.
But for regular transfers? Never.
When setting up systematic money transfers, use modern services.
Save these for genuine emergencies only.
The Hidden Costs Analysis
Let me show you the real cost over time.
Sent $2,000 monthly for 5 years through Western Union (2012 to 2017).
Total sent: $120,000
Fees paid: Approximately $3,600
Exchange rate markup: Approximately $3,800
Total cost: $7,400
Same transfers through Wise would have cost approximately $1,400.
Lost: $6,000 to Western Union over 5 years.
That’s real money. Not theoretical.
MoneyGram costs would be similar. Maybe $5,500 total.
Still terrible compared to alternatives.
The compound effect of bad decisions hurts.
When I worked at SuperMoney, we analyzed transfer costs for customers.
People using legacy services were losing 3% to 5% per transfer on average.
Over a lifetime of remittances, that’s massive.
Similar to how choosing the wrong credit card costs you rewards over time.
Small decisions. Big impact.
The Customer Service Reality
Both have phone support. That’s good.
Call quality varies dramatically. That’s bad.
Called MoneyGram once about a delayed transfer. Hold time was 45 minutes.
Agent was helpful once I got through. Issue resolved same day.
Called Western Union about a rate question. Hold time was 30 minutes.
Agent read from a script. Not helpful. Gave up.
In person at agents? Completely depends on the specific agent.
Some agents are amazing. Helpful. Fast. Professional.
Others are rude. Slow. Make you feel like you’re bothering them.
Luck of the draw.
My mom has a favorite Western Union agent near her house in Trivandrum.
Nice lady. Remembers her. Makes the process smooth.
My mom once tried a different Western Union location. Had a terrible experience.
Never went back there.
The inconsistency is frustrating.
With app based services, the experience is consistent. Always the same. Good or bad.
With agent based services, it’s a lottery.
What I Actually Recommend
Don’t use either service as your primary option.
Use Wise for regular transfers. Best rates. Transparent. Reliable.
Use Remitly for faster transfers to bank accounts. Good rates. Fast delivery.
Use Xoom if you want PayPal backing and speed.
Keep MoneyGram or Western Union as emergency backup.
When cash pickup is essential. When nothing else works.
That’s their role in 2025. Emergency services. Not primary tools.
My current setup:
Wise for 80% of transfers. Best value.
Remitly for 15% of transfers. When speed matters more than cost.
Western Union app on phone for 5% emergencies. Rarely used.
MoneyGram app deleted. Haven’t needed it in years.
This strategy saved me approximately ₹85,000 in 2024 alone compared to using only legacy services.
That’s meaningful money. Real savings.
When talking to folks in the BackToIndia community, most made the same mistake I did.
Used familiar names. Western Union. MoneyGram. Because that’s what we knew.
Never calculated the real cost.
Once you see the numbers, you can’t unsee them.
The Regulatory Safety Aspect
Both are safe. Heavily regulated. Licensed everywhere.
Your money won’t disappear. Transfer might get delayed. But not lost.
MoneyGram is regulated by state authorities in all US states.
Western Union same. Plus additional regulations globally.
Both have been around forever. Survived multiple crises.
From that perspective, they’re trustworthy.
But trustworthy doesn’t mean cost effective.
Think of it like using a bank wire transfer. Safe? Yes. Expensive? Also yes.
Safety and value are different things.
When managing large transfers during relocation, I split across multiple services.
Part through Wise for best rates.
Part through Remitly for speed.
Part through my bank for very large amounts requiring maximum security.
Never put all money through one service. Diversification matters.
The Bottom Line Truth
MoneyGram and Western Union are yesterday’s solution.
Still work. Still useful sometimes. But rarely optimal.
If you’re choosing between these two, you’re asking the wrong question.
The question should be: Do I really need an old school service? Or can I use something better?
90% of the time, the answer is use something better.
10% of the time, when cash pickup is essential, these services deliver.
My honest advice after 15 years of sending money internationally:
Stop using these services as default.
Explore modern alternatives. Save thousands over time.
Keep one as emergency backup if recipient situation requires it.
Otherwise, embrace the future. Your wallet will thank you.
I wish someone had told me this in 2009 when I started working in the US.
Would have saved enough for a down payment on property.
Learn from my expensive mistakes.
Questions about your specific transfer needs? Real people with real experience in BackToIndia Groups.
Someone there has solved your exact problem already.
Sources and References
All data and rates verified as of November 2025 from:
MoneyGram official website and pricing: www.moneygram.com
Western Union rates and locations: www.westernunion.com
FinCEN money transmitter database: www.fincen.gov
Consumer Financial Protection Bureau: www.consumerfinance.gov
Federal Reserve exchange rate data: www.federalreserve.gov
World Bank remittance prices worldwide: remittanceprices.worldbank.org
Exchange rates fluctuate constantly. Always compare current rates before transferring. The comparisons in this article are based on actual usage from 2009 to 2024 and rate checks in November 2025.
For comparisons with modern alternatives, check my reviews of Remitly vs Western Union and Xoom vs Instarem.
TLDR Version
MoneyGram: Founded: 1940
Best for: Cash pickup in areas without Western Union
Agent locations: 430,000 plus globally
Fees: $4 to $20 depending on method
Exchange markup: 2% to 3%
My verdict: Old school backup option only
Western Union: Founded: 1851
Best for: Maximum agent network reach, cash pickup anywhere
Agent locations: 550,000 plus globally
Fees: $5 to $25 depending on method
Exchange markup: 2% to 3%
My verdict: Slightly better than MoneyGram, still expensive
Head to head on $5,000 transfer: MoneyGram delivers: ₹4,09,450 via cash pickup Western Union delivers: ₹4,09,750 via cash pickup
Wise would deliver: ₹4,18,500 approximately
Difference: Lose ₹9,000 using legacy services
What I actually do: Primary: Wise for 80% of transfers
Secondary: Remitly for 15% when speed matters
Emergency backup: Western Union app for cash pickup needs
MoneyGram: Deleted from phone, not needed
Annual savings vs legacy services: ₹85,000 plus
For NRIs specifically: Stop using these as default services Switch to Wise or Remitly immediately.
Save 2% to 4% per transfer Keep Western Union as backup for elderly recipients Over 10 years, savings are substantial
Reality check: Both MoneyGram and Western Union are expensive. Both are outdated. Both still work for specific situations. But modern alternatives are better for 90% of transfers. Stop overpaying out of habit. Your bank account will thank you.
My recommendation: If recipient has bank account, never use these services. Use Wise or Remitly. If recipient needs cash pickup in remote location, use Western Union for maximum reach. MoneyGram only if Western Union not available. Simple.
Lost $6,000 to bad transfer choices from 2012 to 2017. Don’t repeat my mistake. Switch today.
Questions? Ask humans in BackToIndia Groups. Real experiences shared daily.