This Article was fact checked and last updated for accuracy on November 3, 2025 by Mani Karthik
My dad passed away when I was in college.
One of the last things he taught me was about money transfers.
This was the 1990s. He used Western Union to send money to his family in Kerala.
Walked to a Western Union agent. Filled a form. Paid cash. Waited.
His brother would collect cash from another agent in Trivandrum hours later.
Fast forward to 2015. I was living in California. Working at Druva.
Needed to send money to my mom in India regularly.
Walked into a Western Union location in San Jose. Same process as the 90s.
Felt like time travel. Not in a good way.
That’s when a colleague at HappyFox told me about Remitly.
Downloaded the app. Sent money from my couch. Done in 10 minutes.
The future had arrived. Finally.
The Generational Divide in Money Transfers
Western Union launched in 1851. Yes. 1851.
They’ve been around longer than India has been independent.
Remitly launched in 2011. They’ve existed for just over a decade.
This age difference shows everywhere.
| Aspect | Western Union | Remitly |
|---|---|---|
| Founded | 1851 | 2011 |
| Agent Locations | 550,000+ worldwide | Digital only (some cash pickup) |
| Primary Method | In person or online | Mobile app focused |
| Target User | Everyone, especially cash users | Digital native millennials |
Western Union is your grandfather’s money transfer service.
Remitly is what your kids would use.
Both work. Different philosophies entirely.
When I moved back to India in 2017, I had used both extensively.
Different situations demanded different services.
Here’s the catch: Newer doesn’t always mean better. Older doesn’t mean obsolete.
Context matters more than age.
My Real Testing with Both Services
Sent $2,000 through Remitly in June 2024.
Opened app. Selected India. Entered amount. Added recipient bank details. Paid via debit card.
Done in 8 minutes. Money reached my mom’s State Bank account in 3 hours.
Sent $2,000 through Western Union in July 2024.
Drove to their location in Bangalore. Waited in line 15 minutes. Filled form. Showed ID. Paid cash.
Money available for pickup in India within an hour.
Remitly Transfer Details
Amount sent: $2,000 Exchange rate: ₹83.25 per dollar Transfer fee: $3.99 Total received: ₹1,66,252 Time taken: 3 hours to bank account
Western Union Transfer Details
Amount sent: $2,000 Exchange rate: ₹82.45 per dollar
Transfer fee: $8.00 (in person) or $5.00 (online)
Total received: ₹1,64,740 (in person)
Time taken: 1 hour to cash pickup
Difference: ₹1,512 more received with Remitly.
Not insignificant.
But Western Union offered something Remitly couldn’t match that day.
My mom’s bank was down for maintenance. She needed cash immediately.
Western Union cash pickup saved the day.
Similar to how choosing between Xoom and Instarem depends on your specific needs.
Quick Recap:
✅ Remitly better rates for bank transfers
✅ Western Union faster for cash needs
✅ Both have their place
The Fee Structure Reality
Remitly has two tiers. Express and Economy.
Express costs more. Delivers faster. Usually within hours.
Economy is cheaper. Takes 3 to 5 days. Better exchange rate.
| Service Level | Remitly Express | Remitly Economy | Western Union |
|---|---|---|---|
| Transfer Fee | $3.99 to $9.99 | $0 to $1.99 | $5 to $15 |
| Exchange Markup | 1.5% to 2% | 0.5% to 1% | 2% to 3% |
| Speed | Hours | Days | Minutes to hours |
| First Transfer | Often free | Often free | Varies |
Numbers from November 2025.
Western Union fees vary wildly.
Online transfer? Lower fee.
In person cash? Higher fee.
Agent location matters. Some charge more than others.
Remitly is transparent. What you see is what you pay.
I prefer knowing costs upfront. No surprises at the counter.
My wife used Western Union once. Thought the fee was $5. Turned out to be $12 at that specific location.
She was upset. Switched to Remitly permanently.
When transferring money regularly from USA to India, predictability matters.
The Speed Factor
Western Union wins on pure speed.
Cash to cash in under an hour. Sometimes minutes.
This saved me twice.
Once when my mom needed emergency medical funds in Trivandrum. Sent through Western Union. She collected cash in 45 minutes.
Another time when my cousin needed urgent document fees. Bank transfer would have taken too long.
Remitly’s fastest option takes 2 to 4 hours for bank transfers.
Economy option takes 3 to 5 days.
Never had an urgent need that 3 hours couldn’t solve. But some people do.
| Delivery Speed | Remitly | Western Union |
|---|---|---|
| Express/Urgent | 2 to 4 hours | Minutes to 1 hour |
| Standard | 3 to 5 days | Same day |
| Bank Account | Yes | Yes |
| Cash Pickup | Limited partners | 550,000+ locations |
| Mobile Wallet | Yes (selected) | Limited |
If someone in your family doesn’t have a bank account, Western Union’s agent network is unbeatable.
My wife’s grandmother in a small village near Palakkad has no bank account.
When we send her money, Western Union cash pickup is the only practical option.
Remitly can’t help there.
This is important for older generation recipients. Bank access isn’t universal yet.
💡Tip: If your recipient is elderly or lives in rural areas, check if they can access cash pickup before choosing digital only services.
The User Experience Gap
Remitly app is excellent.
Clean interface. Simple steps. Clear pricing before you commit.
My US born son sent money to India for the first time at age 20. Used Remitly. No help needed from me.
That’s good design.
Western Union app exists. But feels like an afterthought.
Clunky. Confusing. Multiple steps that could be one.
Their in person experience? Hit or miss.
Some agents are helpful. Some are indifferent. Some are downright rude.
I once waited 30 minutes because the agent was on a personal call.
Never happening with an app.
But here’s something interesting.
My mom prefers Western Union for receiving.
She likes walking to the agent. Getting cash. Feeling the money.
It’s psychological. Tangible feels real to her generation.
Digital transfers feel abstract.
Can’t argue with that. Different comfort levels.
When helping parents with financial matters, respect their preferences. Even if yours differ.
Customer Support Comparison
Remitly support is responsive. Chat. Email. Phone.
Had an issue with a delayed transfer once. Contacted support via chat.
Response in 5 minutes. Issue escalated. Resolved within 2 hours.
Western Union support is variable.
Online support is okay. Phone support has long wait times.
In person at agent locations? You’re at the mercy of that specific agent.
Called Western Union customer service once. Hold time was 38 minutes.
By the time someone answered, I had already resolved the issue through Remitly instead.
Time is money. Literally.
The quality of support matters when things go wrong.
And things do go wrong sometimes. Wrong account number entered. Recipient name mismatch. Bank issues.
Fast support resolution saves stress.
Similar to how platform support quality varies across money transfer services.
The Hidden Costs Analysis
Both services advertise low fees.
The real cost is in the exchange rate markup.
Sent $5,000 through both services in August 2024. Same day. For comparison.
Real market rate that day: ₹83.50 per dollar.
Remitly Economy: Rate offered: ₹83.15
Fee: $1.99
Total received: ₹4,15,584
Effective rate: ₹83.11
Remitly Express: Rate offered: ₹82.85
Fee: $4.99
Total received: ₹4,14,045
Effective rate: ₹82.80
Western Union Online: Rate offered: ₹82.25
Fee: $7.00 Total received: ₹4,10,885
Effective rate: ₹82.17
Remitly Economy gave me ₹4,699 more than Western Union.
That’s a month of groceries for my family.
The math doesn’t lie.
For regular transfers where speed isn’t critical, Remitly saves money.
When managing remittances over a year, these differences compound significantly.
The Trust Factor
Western Union has been around 173 years.
That longevity means something. They’ve survived everything.
Multiple financial crises. Technology disruptions. Regulatory changes.
Still standing.
Remitly is 13 years old. Successful. Growing. But unproven over decades.
My dad used Western Union. His dad probably used telegraph services that became Western Union.
There’s comfort in that history.
But Remitly has modern advantages.
FDIC insured in the US. Regulated globally. Transparent operations.
I trust both with my money. Never lost a transfer with either.
Delays? Yes. Lost? Never.
This matters when you’re moving significant amounts during relocation.
When Western Union Actually Wins
Despite Remitly being cheaper and more convenient, Western Union has advantages.
Cash pickup network. Unmatched.
I sent money to my wife’s uncle in a remote Assam village once.
No bank nearby. Nearest town 40 km away. But a Western Union agent existed.
He collected cash same day. Remitly would have been useless there.
Western Union also works in countries where Remitly doesn’t.
My cousin needed to send money from India to Dubai. Then to Philippines.
Western Union handled it. Remitly couldn’t.
The global reach of Western Union is still superior.
For the 80% common use case of USA to India bank transfers, Remitly wins.
For the 20% edge cases, Western Union is often the only option.
📌 Fact File: Money Transfer Regulations All money transfer services in USA are regulated by FinCEN State licenses required in all 50 states Consumer protection laws apply equally Your money is safe with licensed operators Report issues to CFPB if problems arise
The NRI Perspective
When I was working at Citrix and SuperMoney in California, I sent money home monthly.
Supported my mom. Paid for property maintenance. Invested in Indian markets.
Over 8 years in the US, I probably sent over $120,000 to India.
Using the wrong service would have cost me thousands in unnecessary fees.
I used multiple services. Bank wires early on. Then discovered Remitly. Sometimes Western Union.
If I could do it again, I’d use Remitly for 90% of transfers.
Western Union only for the rare urgent cash needs.
Would have saved approximately $2,800 over those 8 years.
Real money. Wasted on fees and poor exchange rates.
When you’re planning your move back to India, every dollar saved matters.
My Current Usage Pattern
Remitly is my primary service now.
Send money to my mom monthly. ₹50,000 regular transfer.
Use Economy option. Takes 3 days. Who cares? It’s planned.
Saves approximately ₹800 per transfer compared to Western Union.
Over a year, that’s ₹9,600 saved. Almost $115.
Western Union app sits on my phone. For emergencies only.
Used it once in the last year. When my mom’s bank account had issues and she needed cash immediately.
That flexibility is worth keeping the option available.
My wife doesn’t use Western Union at all. Only Remitly.
She values simplicity. One app. One process. Done.
Can’t argue with that approach either.
When managing family finances across borders, different family members need different solutions.
Which One Should You Choose
Choose Remitly if: You’re sending to bank accounts You want the best exchange rates You’re comfortable with apps Speed within 3 hours is acceptable You transfer regularly
Choose Western Union if: Recipient needs cash pickup You’re in a remote location Urgent transfer needed within an hour Recipient has no bank account You prefer in person transactions
Keep both available if: You want options for different scenarios You transfer to different recipients with different needs You value having backup methods Emergency situations might arise
Zero cost to have both apps. No monthly fees. No commitment.
Use what makes sense for each transfer.
That’s what I do.
The Bottom Line
Remitly is better for most modern NRI transfers.
Better rates. Better app. Better support. Better experience.
Western Union still has a place. Cash network. Global reach. Proven history.
Both are legitimate. Both are safe. Both work.
Your specific situation determines the right choice.
I wish I had known about Remitly when I first started sending money in 2009.
Would have saved thousands of dollars over the years.
Don’t make my mistake. Use the right tool.
Stop overpaying for transfers.
Have questions about your specific transfer needs? Ask in the BackToIndia community.
Someone there has probably solved your exact problem.
Sources and References
All data and rates verified as of November 2025 from:
Remitly official pricing: www.remitly.com
Western Union rates and locations: www.westernunion.com
FinCEN money transfer regulations: www.fincen.gov
Consumer Financial Protection Bureau: www.consumerfinance.gov
Federal Reserve exchange rate data: www.federalreserve.gov
Exchange rates fluctuate constantly. Always compare current rates before transferring. The comparisons in this article are based on actual transfers made in 2024 and rate checks in November 2025.
For detailed individual reviews, check my Remitly Review and comparison with other transfer services.
TLDR Version
Remitly: Best for: Regular bank transfers, digital natives, cost optimization Fees: $0 to $9.99 depending on speed Exchange markup: 0.5% to 2% Speed: 2 hours to 5 days My verdict: Best value for routine transfers
Western Union: Best for: Cash pickup, rural recipients, emergency transfers, global reach Fees: $5 to $15 varying by method and location Exchange markup: 2% to 3% Speed: Minutes to hours My verdict: Essential backup option
Head to head on $5,000 transfer: Remitly Economy: ₹4,15,584 in 3 to 5 days Remitly Express: ₹4,14,045 in 2 to 4 hours Western Union: ₹4,10,885 in under 1 hour Best rate: Remitly Economy saves ₹4,699
What I actually do: Primary: Remitly for all planned transfers Backup: Western Union app for emergencies Saved: Approximately ₹9,600 annually using Remitly Total cost: Zero for having both options
Quick decision framework: Bank transfer, can wait few hours? Remitly Need cash pickup? Western Union Best exchange rate? Remitly Economy Fastest possible? Western Union Rural/remote recipient? Western Union
Reality check: Your bank is still the worst option. Either of these services beats banks. Pick one based on your needs. Stop losing money to unnecessary fees.
My recommendation: Download Remitly today. Use it for your next transfer. Keep Western Union as backup for special situations. You’ll thank me when you see the savings.
Questions about specific transfer scenarios? Real people sharing real experiences in BackToIndia Groups. Join the conversation.