Best Ways to Send Money Internationally in 2025

Why Choosing the Right Transfer Service Matters

Sending money internationally is something millions of people do regularly — whether supporting family abroad, paying freelancers in other countries, settling bills while living overseas, or purchasing property. The problem is that the cost difference between services can be enormous. On a $1,000 transfer, you might pay $5 with one service and $50 with another, both for the same result.

The international money transfer market has been disrupted significantly by fintech companies over the past decade, breaking the dominance of traditional banks and legacy services. In 2025, you have more options than ever, but understanding the trade-offs between cost, speed, coverage, and convenience is essential.

How International Transfers Actually Work

Before comparing services, it helps to understand what happens when you send money internationally:

1. You deposit money with the transfer service in your local currency
2. Currency conversion happens at a certain exchange rate (with some markup)
3. The service charges a fee (flat fee, percentage, or both)
4. The money is sent via banking networks (SWIFT, local payment rails, or the service's own network)
5. The recipient receives the money in their local currency

The total cost of a transfer = transfer fee + exchange rate markup. Many services advertise "no fees" but make their money on the exchange rate markup, which can be substantial.

The Major Players Compared

Wise (formerly TransferWise)

Wise has become the gold standard for transparent international transfers. Founded in 2011, it now serves over 16 million customers.

How it works: Wise uses a peer-to-peer matching system and local bank accounts in each country to minimize the actual movement of money across borders. This allows them to offer the mid-market exchange rate with a small, transparent fee.

Key features:

• Mid-market exchange rate (the real rate you see on Google)
• Transparent fee shown upfront before you confirm
• Multi-currency account with local bank details in 10+ currencies
• Wise debit card for spending abroad
• Business accounts available

Typical costs (sending $1,000 USD to Europe):

• Fee: approximately $6-8
• Exchange rate markup: 0.35-0.60%
• Total cost: approximately $10-14
• Speed: 1-2 business days (sometimes same day)

Best for: Regular transfers, expats, freelancers, transparent pricing

PayPal / Xoom

PayPal is one of the most recognized payment platforms globally, and Xoom (acquired by PayPal in 2015) handles their international remittance service.

Key features:

• Massive global reach (200+ markets)
• Familiar interface for existing PayPal users
• Multiple delivery options (bank deposit, cash pickup, mobile wallet)
• Xoom offers delivery to mobile wallets in some countries
• Buyer protection for goods/services payments

Typical costs (sending $1,000 USD to Europe):

• Fee: $0-5 (varies by funding method and destination)
• Exchange rate markup: 2.5-4.0%
• Total cost: approximately $25-45
• Speed: 1-3 business days (instant for some destinations)

Important note: PayPal's exchange rate markup is where the real cost lies. The advertised "no fee" often hides a 3-4% currency conversion charge, making it significantly more expensive than Wise for most transfers.

Best for: Occasional transfers, PayPal ecosystem users, when recipient already has PayPal

Remitly

Remitly focuses specifically on remittances — regular money transfers to family and friends abroad. It is particularly strong for transfers to developing countries.

Key features:

• Express (fast) and Economy (cheaper) transfer options
• Strong coverage in Asia, Latin America, Africa
• Cash pickup available at thousands of locations
• Mobile-first experience
• Promotional rates for first-time users

Typical costs (sending $1,000 USD to Philippines):

• Fee: $0-5 (Express) or $0 (Economy)
• Exchange rate markup: 0.5-1.5%
• Total cost: approximately $5-20
• Speed: Minutes (Express) to 3-5 days (Economy)

Best for: Remittances to family in developing countries, cash pickup needs

Western Union

Western Union is the legacy giant of international money transfers, with a vast physical network of over 500,000 agent locations worldwide.

Key features:

• Largest physical network in the world
• Cash pickup available almost anywhere
• In-person, online, and mobile transfer options
• Money can be sent to people without bank accounts
• Established brand with 170+ year history

Typical costs (sending $1,000 USD to Europe):

• Fee: $5-50 (varies enormously by route and method)
• Exchange rate markup: 1-4%
• Total cost: approximately $15-80
• Speed: Minutes (in-person) to 1-5 days (bank transfer)

Best for: Cash pickup in remote areas, sending to unbanked recipients, in-person transactions

OFX (formerly OzForex)

OFX is designed for larger transfers, particularly for business payments, property purchases, and expat salary transfers.

Key features:

• No transfer fees on amounts over $1,000
• Competitive rates for large transfers
• Dedicated currency dealers for personal service
• Forward contracts and limit orders available
• Business and personal accounts

Typical costs (sending $10,000 USD to Europe):

• Fee: $0
• Exchange rate markup: 0.4-1.0%
• Total cost: approximately $40-100
• Speed: 1-3 business days

Best for: Large transfers ($5,000+), property purchases, regular business payments

Revolut

Revolut offers international transfers as part of its broader digital banking platform.

Key features:

• Transfers in 25+ currencies
• Competitive exchange rates (mid-market on weekdays for premium users)
• Integrated with full banking features
• Crypto, stocks, and budgeting tools
• Peer-to-peer transfers between Revolut users are instant and free

Typical costs (sending $1,000 USD to Europe):

• Fee: $0-5 (depending on plan)
• Exchange rate markup: 0-1% (0% for premium on weekdays)
• Total cost: approximately $0-15
• Speed: 1-3 business days (instant between Revolut users)

Best for: Revolut users, European transfers, multi-feature banking

Head-to-Head Comparison

Sending $1,000 USD to EUR (Europe)

Service	Transfer Fee	Rate Markup	Total Approx. Cost	Speed
Wise	~$7	0.4%	~$11	1-2 days
Revolut (Premium)	$0	0% (weekday)	~$0-5	1-3 days
Remitly	~$4	1.0%	~$14	1-3 days
OFX	$0	0.5-1.0%	~$5-10	1-3 days
Western Union	~$8	2.0%	~$28	1-5 days
PayPal/Xoom	~$0	3.0%	~$30	1-3 days
Traditional Bank	~$25-50	2-5%	~$45-100	3-5 days

Costs are approximate and vary by specific corridor, funding method, and current promotions.

Sending $500 USD to PHP (Philippines)

Service	Transfer Fee	Rate Markup	Total Approx. Cost	Speed
Wise	~$5	0.6%	~$8	1-2 days
Remitly (Express)	~$4	0.8%	~$8	Minutes
Western Union	~$5-15	1.5%	~$12-22	Minutes-days
PayPal/Xoom	~$0	2.5%	~$12.50	1-3 days

Factors to Consider When Choosing

Transfer Amount

• Small amounts ($50-500): Flat fees matter more. Wise and Remitly are typically cheapest.
• Medium amounts ($500-5,000): Exchange rate markup becomes the dominant cost. Wise, Revolut, and OFX shine here.
• Large amounts ($5,000+): OFX and Wise offer the best rates. Negotiate with OFX for amounts over $10,000.

Speed Requirements

• Instant/Same-day: Western Union (cash pickup), Remitly Express, Revolut (between users)
• 1-2 business days: Wise, Remitly, Revolut
• 3-5 business days: Traditional banks, economy options

Delivery Method

• Bank deposit: All services offer this
• Cash pickup: Western Union (largest network), Remitly, Xoom
• Mobile wallet: Remitly, Xoom (in select countries)
• Card deposit: Some services offer direct-to-card delivery

Recipient's Country

Coverage varies significantly. While services like Wise and Western Union are available in 60-190+ countries, specific corridors may be cheaper with different providers. Always compare for your specific route.

Traditional Banks: Why They Are Usually the Worst Option

Traditional banks remain the most expensive way to send money internationally for most consumers:

• SWIFT transfer fees: $25-50 per transfer
• Intermediary bank fees: Additional $10-30 may be deducted in transit
• Exchange rate markup: 2-5% above mid-market
• Receiving bank fees: Some charge $10-25 to receive international wires
• Speed: 3-5 business days
• Total cost on $1,000: $60-130

The only scenario where banks make sense is if you are transferring very large amounts (over $50,000) and can negotiate a preferential exchange rate, or if you need an official bank wire for a property purchase or legal transaction.

Tips for Saving on International Transfers

1. Always compare the total cost (fee + exchange rate markup), not just the fee
2. Use the mid-market rate as your benchmark — check it on Google or a currency converter before comparing
3. Avoid transferring on weekends — some services add a markup for weekend conversions
4. Set up rate alerts to transfer when the exchange rate is favorable
5. Batch transfers if possible to reduce the number of flat fees paid
6. Fund transfers via bank account (ACH/debit) rather than credit card, which often adds 1-3% extra
7. Look for first-time user promotions — most services offer better rates or zero fees for your first transfer
8. Consider forward contracts for large planned transfers (OFX, Wise Business) to lock in a favorable rate

Key Takeaways

The best international transfer service depends on your specific needs: where you are sending, how much, how fast, and how the recipient wants to receive the money. For most people, Wise offers the best combination of low cost, transparency, and reliability. For remittances to developing countries, Remitly is strong. For large amounts, OFX stands out. Avoid traditional bank wires unless absolutely necessary.

Before making any transfer, check the current mid-market exchange rate at hwanyul.com to know exactly what rate you should expect, and compare that against what each service offers.