What Remitly Is
Remitly is a digital money transfer service that moves cash from one person to another, usually across borders. You send money from your bank account, debit card, or existing Remitly balance to someone else's bank account, mobile wallet, or cash pickup location. The recipient gets the money in their local currency if they're in a different country. Remitly operates as a licensed money transmitter in the United States and holds similar licenses in other countries where it operates.
The service is built for people sending money to family or friends abroad—particularly to Latin America, Africa, Asia, and Europe. You don't need the recipient to have a Remitly account; they just need a way to receive the funds, whether that's a bank account, a mobile money app, or a physical cash pickup point in their country.
Remitly charges a fee for each transfer and applies an exchange rate when converting currencies. Both the fee and the rate depend on which country you're sending to, how much you're sending, and which delivery method you choose. The company publishes its rates and fees upfront before you confirm any transfer.
Key Takeaways
- Remitly transfers money from your U.S. bank account or card to someone's bank account, mobile wallet, or cash pickup location abroad.
- Delivery speed ranges from same-day to several business days depending on the destination country and the delivery method you select.
- Fees and exchange rates vary by destination and delivery speed; Remitly shows you the exact amount before you send.
- You can send money through the Remitly app, website, or in person at certain retail locations, and the recipient does not need a Remitly account.
How a Remitly Transfer Works
You start by creating a Remitly account online or through the mobile app. You'll provide your name, address, and identification information. Remitly verifies your identity before you can send money—this is a federal requirement for all money transmitters in the United States.
Once your account is set up, you enter the recipient's details: their name, the country they're in, and how they want to receive the money (bank deposit, mobile wallet, or cash pickup). You then choose how much to send and which delivery speed you want. Remitly shows you the fee, the exchange rate, and the exact amount the recipient will get. You review these details, authorize the transfer from your bank account or card, and the money moves.
The recipient receives a notification—usually by text or email—telling them the money has arrived and how to access it. If they're receiving cash, they go to a pickup location with their ID. If it's going to a bank account or mobile wallet, the funds appear there automatically.
Delivery Speed and Timeline
Remitly offers multiple delivery speeds, and the timeline depends on which one you choose and which country you're sending to. Same-day delivery is available to some countries and costs more. Standard delivery typically takes one to three business days. Economy delivery is the slowest and cheapest option, sometimes taking up to a week or longer depending on the destination.
The actual time also depends on when you send the money. A transfer sent on a Friday evening may not process until Monday morning. Bank holidays and local banking hours in the recipient's country can add delays. Remitly provides an estimated delivery date when you confirm the transfer, and you can track the status in the app or on the website.
Fees and Exchange Rates
Remitly charges a flat fee per transfer, which varies by destination country and delivery speed. A transfer to Mexico might cost $2.99 for standard delivery but $4.99 for same-day. A transfer to the Philippines might have different pricing. The company does not charge a fee if the money doesn't go through, though your bank may charge you for the failed transaction attempt.
In addition to the transfer fee, Remitly applies an exchange rate when converting U.S. dollars to another currency. This rate is not the mid-market rate you see on financial news sites; it includes Remitly's margin. The company shows you the exact rate before you confirm, so you know precisely what the recipient will get. You can compare this rate to other services, but remember that the cheapest rate isn't always the best deal if another service charges a lower fee or delivers faster.
When Remitly Makes Sense
Remitly works well if you're sending money regularly to the same person in a country where Remitly operates. The app is straightforward, the fees are transparent, and you don't need the recipient to set up an account. If you're sending small amounts—under $500—the flat fee structure often costs less than a wire transfer through a bank.
Remitly is also useful if the recipient doesn't have a bank account but can access cash pickups or mobile money. In many countries, Remitly partners with local networks so recipients can pick up cash at convenience stores or receive money through services like M-Pesa in Kenya or GCash in the Philippines.
However, if you're sending a very large amount of money, a wire transfer through your bank or a service like OFX might offer a better rate despite higher fees. If you need the money to arrive within hours and Remitly doesn't offer same-day delivery to that country, you'll need a different service.
Remitly Versus Bank Wire Transfers
A bank wire transfer moves money directly from one bank to another using the SWIFT network. It's slower than Remitly's fastest options, usually taking three to five business days internationally. Bank wires typically cost $15 to $50 per transfer and may include a less favorable exchange rate than Remitly offers. You also need the recipient's full banking details, including their SWIFT code and IBAN or account number.
Remitly is faster for most destinations and cheaper for small transfers. A bank wire makes more sense if you're sending a large amount—say, $5,000 or more—because the percentage cost of the wire fee becomes smaller relative to the total. Remitly's exchange rate margin also becomes less significant on large transfers when you're comparing it to a bank's margin.
Security and Fraud Protection
Remitly is a licensed money transmitter regulated by state authorities and the Financial Crimes Enforcement Network (FinCEN). The company uses encryption to protect your account and requires identity verification before you can send money. This verification protects both you and the recipient by preventing fraud and money laundering.
Once a transfer is sent and the recipient has received the money, you cannot reverse it. This is true for all money transfer services. If you send money to the wrong person or the recipient doesn't receive it, you'll need to contact Remitly's customer service to investigate. Remitly offers a money-back may provide if the recipient doesn't receive the funds within the promised timeframe, though this may provide has conditions and exclusions.
Protect your Remitly account the same way you protect your bank account: use a strong password, enable two-factor authentication, and never share your login details. If your account is compromised, contact Remitly immediately.
Frequently Asked Questions
Can I send money to someone who doesn't have a bank account?
Yes. Remitly offers cash pickup at partner locations in many countries, and mobile wallet delivery in others. The recipient can pick up cash with just their ID or receive money through their mobile money account. Check Remitly's website to see which delivery methods are available in the specific country you're sending to.
What happens if the recipient doesn't pick up the money?
If the recipient doesn't collect cash within a set period—usually 90 days—Remitly returns the money to your account. For bank transfers and mobile wallet deposits, the money sits in the recipient's account until they access it. Contact Remitly if you need to cancel a transfer or resend money.
Is Remitly cheaper than Western Union?
For most small transfers, Remitly is cheaper than Western Union because Remitly's fees are lower and its exchange rates are more favorable. However, the difference depends on the destination country, the amount, and the delivery speed. Compare the total cost—fee plus exchange rate—on both services before you send.
Can I send money to a business or pay a bill with Remitly?
Remitly is designed for sending money to individuals, not for paying bills or business transactions. If you need to pay a utility bill or business invoice abroad, you may need a different service or a direct bank transfer. Some countries allow bill payments through Remitly's cash pickup partners, so check the app for your specific destination.
What identification do I need to send money?
Remitly requires a valid government-issued ID such as a driver's license, passport, or state ID card. You'll provide this information when you create your account. For larger transfers, Remitly may ask for additional documentation to comply with federal anti-money-laundering rules.