Comparing Remittance Services: Key Factors to Consider

Sending money abroad to loved ones can be a stressful process. You want to make sure your hard-earned cash arrives safely, quickly, and with minimal fees. This is especially true when sending remittances to the Philippines. With so many remittance services to choose from, how do you decide?

In this post, we’ll compare the key factors to consider when using remittance services to send money to the Philippines. Whether you prioritize speed, cost, convenience, or reliability, understanding these key details will help you pick the best service for your needs.

Top Remittance Services for Sending Money to the Philippines

First, let’s highlight some of the top and most popular choices for sending remittances to the Philippines:

• Western Union – A household name, but higher fees
• MoneyGram – Similar to Western Union, with extensive agent locations
• Xoom – Digital wallet transfer service owned by PayPal
• Remitly – Online remittance service focused on great exchange rates
• WorldRemit – Digital remittance company with app and cash pickup
• TransferWise – Bank transfer service with low fees

These services make it easy to get money to the Philippines quickly and securely. However, they vary widely in fees charged, exchange rates offered, pickup options, and more.

Speed of Transfers

One of the most important factors is how quickly your recipient can access the cash. With some digital and online remittance services, transfers can be nearly instantaneous. The money may show up in your recipient’s bank account or digital wallet within minutes.

However, the last mile of actually getting cash in hand can vary greatly. With bank account deposits, the recipient has to visit an ATM. For cash pickup services, they have to travel to an agent’s location. This can take hours or days, depending on accessibility and opening hours.

So, while the transfer itself may be fast, the ultimate speed depends greatly on the pickup option.

Cost: Fees and Exchange Rates

Of course, as a sender you also want to consider the costs—both outright fees charged as well as foreign currency exchange rates.

Many remittance services charge fees based on a percentage or fixed amount per transaction. Some charge both the sender and the recipient. This is especially true for services like Western Union and MoneyGram, which rely on localized agent networks.

Digital online services tend to have lower fees simply due to less overhead. But they can still vary significantly. TransferWise advertises very low transparent pricing, while PayPal’s Xoom sets its own exchange rate that builds in profit.

When currency has to be converted, the company’s exchange rate also matters greatly. A good rate can save you a lot over time compared to services that use an inflated rate to hide fees essentially.

Reliability and Trustworthiness

You also want confidence that your money will arrive safely every time. Fly-by-night companies come and go. However, major providers like Western Union and MoneyGram have been around for generations. Their global networks offer reliable reach that a scrappy fintech startup likely can’t match.

That said, there are still plenty of dependable new digital platforms gaining popularity. Reading reviews provides insight into the reliability and service quality over time. Comparing user experiences helps determine if a company has the infrastructure for safely sending money abroad.

For ultimate reliability, you can’t beat using major wire transfer companies for remittances to the Philippines. But it comes at a cost.

Convenience and Accessibility

Ease of use is another key factor—both for the sender and the recipient. Plenty of remittance providers have mobile apps, online account access, and predictable transfers. But not all offer the same convenience when it comes time for money to change hands.

If your recipient lacks smartphone access or is tech-savvy, digital-only services pose a challenge. In fact, for cash pickups, having nearby agent locations is a must. This favors established companies like M Lhuillier that have thousands of Filipino agent locations across the islands. Western Union and MoneyGram also have strong cash pickup networks through branches like M Lhuillier, Cebuana Lhuillier, and Palawan Pawnshop.

On the other end, the convenience of sending funds also matters. Navigating websites and managing transfers should be straightforward. You want to avoid services that are overly complex just to save a few dollars on currency conversion. Easy and fast beats are opaque and confusing.

Additional Services

Finally, consider if you need any additional ancillary offerings bundled into the remittance service. For example:

• Direct billing options – pay remittance fees out of transferred funds
• Batch transfers – bundle multiple recipient transfers
• Business/enterprise accounts
• API connections for platforms/apps to access the transfer system

Most people are happy with simply selecting a transfer amount and sending funds. But for power users, these extras can streamline more complex processes.

The Bottom Line

Sending money back home to the Philippines is an important way to support the family financially. Comparing remittance services on fees, exchange rates, speed, reliability, pickup options, and convenience ensures you make the right choice. Balancing these factors means getting the hard-earned cash you transfer into the hands of loved ones faster and more affordably.

Whether utilizing physical agent networks like Western Union or online providers like WorldRemit and Remitly, understanding these key details gives confidence in every remittance transfer. We hope this outline of vital factors helps guide your decision and makes supporting families in the Philippines easier from abroad.

Now that you know the basics, you can weigh your priorities and pick the best service for safely sending money to the Philippines. Getting remittances to where they matter is what it’s all about.