Remitly is fast and easy to use, but are you really getting the best deal? This guide reveals what most people miss:
How hidden fees, exchange rate markups, and delivery methods impact the final amount received. If you send money abroad regularly, this could save you more than you think.
1. How Remitly’s Transfer Model Works
Remitly operates under a dual-speed model: Economy and Express.
- Economy: Prioritises low fees (often zero), but offers slightly lower exchange rates and takes 1–3 business days.
- Express: Faster (often under 10 minutes), but comes with either a flat fee or an embedded markup in the exchange rate.
The platform earns revenue from a combination of fixed fees and exchange rate margins, depending on the tier and currency pair.
2. The True Cost: What You’re Actually Paying
One of the biggest misconceptions is believing that a “no fee” transfer is actually free. Here’s a breakdown of how the cost is embedded:
- Transfer fee: Often zero with Economy, around £2.99 with Express.
- Exchange rate margin: Varies by country pair. For UK to India, the markup is usually around 1.2% to 1.8%.
- Funding method: Credit cards may trigger additional charges from your bank.
In practical terms, this means:
Sending £500 from the UK to India (April 2025):
- Economy: No upfront fee, 1.5% markup, recipient gets approx. ₹54,100
- Express: £2.99 fee, 1.0% markup, recipient gets approx. ₹54,700 in under 10 minutes
So, Express may deliver more despite having a fee, due to better rates.
3. Comparing Remitly to Key Competitors
| Platform | Transfer Speed | Fee (£) | Exchange Markup | Recipient Gets (for £500) |
|---|---|---|---|---|
| Remitly Eco | 1–3 days | £0.00 | ~1.5% | ~₹54,100 |
| Wise | 1–2 days | £2.50 | 0% (mid-market) | ~₹55,200 |
| Western Union | Same day | £4.90 | ~3.5% | ~₹52,800 |
The table shows how small differences in markup impact the final amount. Wise offers the best rates, while Remitly strikes a balance between cost and speed. Western Union is fastest but least cost-effective.
4. Delivery Methods and Local Availability
Remitly offers multiple delivery methods depending on the recipient country:
- Bank deposit (all countries)
- UPI transfers (India)
- Cash pickup (in select regions)
- Mobile wallets (e.g. GCash, PayMaya in the Philippines)
In India, UPI is the most popular and fastest option, often available instantly. Cash pickups, however, are slower and subject to delays from local partners.
5. Real Stories: When Remitly Shines (and When It Doesn’t)
- Case 1: Urgent Medical Transfer A student in London sent £200 to his mother in Delhi for emergency treatment. Using Express, the money arrived in under 5 minutes. The fee was worth it.
- Case 2: Monthly Support A UK-based engineer sends £800 monthly to his parents. He uses Economy, saving over £50 annually in fees, but ensures he transfers early in the week.
- Case 3: Unexpected Delay A business owner sent money on a Friday evening. Though marked as 1-day delivery, the funds arrived on Monday due to bank processing delays.
6. Tips to Maximise Your Remitly Transfer
- Send early in the day to avoid timezone delays.
- Avoid using credit cards to fund the transfer unless necessary.
- Track the exchange rate for a few days before sending.
- Verify recipient bank details thoroughly to avoid failed transfers.
- Use loyalty bonuses or fee waivers when available.
7. Is Remitly Worth It in 2025?
Remitly is best for:
- Urgent transfers under £500 where speed is critical
- Senders who don’t want to bother comparing rates daily
- Recipients needing cash pickup or mobile wallet delivery
It’s not ideal for:
- Large amounts over £1,000, where markup losses grow
- Freelancer or business payments, where Wise or Revolut may offer better transparency
CONCLUSION: While Remitly might not always offer the lowest cost, it provides flexibility, regional delivery options, and reliable service. If you prioritise speed or accessibility for the recipient, it’s a strong contender.
To explore your best transfer options in more detail, including how to compare rates live, visit Remitly’s official site and test with small amounts first. That way, you’ll see how it performs in real time and avoid surprises.
