Western Union vs MoneyGram

 

Western Union

Western Union is probably the most well known money transfers business in the world – and definitely one of the oldest. Founded in 1851 as a telegraph company, it has more offices and site locations than anyone in the market. Western Union now has a number of business areas dealing with different elements of the communications world and its money transfer sector is a leader in the industry.

With such a global reach, Western Union is sometimes referred to as a bridge between the developed and developing world, employing over 7,000 people worldwide and moving an enormous $80bn between customers in money transfers annually.

 

MoneyGram

Although Western Union is undoubtedly the biggest name in the world of international money transfers, MoneyGram is the only other company that comes close in terms of size. Founded in 1940, it also has a number of financial divisions operating in more than 200 countries with a network of approximately 347,000 agent offices.

The immense size of MoneyGram gives it far more reach than most of its competitors and it can legitimately claim to be a world-renowned brand.

 

Price Comparison

Perhaps due to its size – and related overheads – one of the criticisms aimed at Western Union is that it is not always the cheapest option when it comes to cross-border payments. It could be because of its vast network and infrastructure costs, but being able to reach more people has tended to raise its prices. Fees and exchange rates seem to be higher than competitors. However, larger money transfers can be dealt with by specialist divisions and therefore cost less.

MoneyGram also seems to have higher fees and costs concerning exchange rates than most of its competitors but this can be put down to its extensive global reach. Other international payments companies may be able to send money abroad at a cheaper cost – but that is only when they actually service those locations. What MoneyGram has in its favour is that it reaches places in the world that most competitors cannot.

 

International Presence

Western Union has without doubt the furthest global reach of anyone in the money transfers industry. Coupled with a far-reaching brand awareness, it is quite simply the industry leader. With more offices and agents – and the ability to handle more currencies in more countries – than anyone else, Western Union has an incredible international presence.

As far as international money transfers go, MoneyGram is the only company that comes anywhere near Western Union for global reach. With a similarly long history in the industry, it has been able to extend into areas of the world where few others have ventured. It has excellent banking relations worldwide and the MoneyGram online operation is also impressive, with the website translated into a number of languages.

 

Ease of Use

As a company that has been in existence for over 160 years, it is unsurprising that Western Union has the experience to be able to serve its customers well. The size of the company will obviously mean that it is the target of more complaints than anyone else – but that does not reflect on its business practices. Rather it offers an indication of the volume of trade. Sending money abroad, both online or in person, is very straightforward and it is unlikely that Western Union is going anywhere soon.

MoneyGram has the same disadvantage as Western Union in that it is such a large operation that there is sure to be some small inconveniences experienced by some customers. But overall, it seems as if MoneyGram do a very good job – especially with moving cash around the world. Transferring larger, salaried amounts of money may not be their speciality but MoneyGram’s entire online operation is incredibly user-friendly.

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