Guide · Costs & fees · 6 min read
How much does it cost to send money internationally?
Understanding what you're actually paying, service fee, exchange-rate margin, and how to pay less.
- 6.4%
- World Bank global average
- <1%
- Cheapest fintechs
- 3%
- UN SDG 2030 target
Key Numbers
The True Cost of an International Transfer
When you send money abroad, there are typically two cost components, and most people only see one of them:
- 1 Service fee: The flat fee or percentage charged upfront. This is what most people see when comparing services. A five-dollar fee on a typical transfer equals 2.5%.
- 2 Exchange rate margin: The gap between the real mid-market rate and what you actually get. This is often hidden and can add 2-8% to your total cost. Banks are notorious for inflating this margin.
The World Bank measures total cost as a percentage of a $200 transfer, combining both components. This methodology, used across all 322 corridors on PlainRemit - gives you a true apples-to-apples comparison.
Cost by Transfer Method
| Transfer Method | Typical Cost |
|---|---|
| Bank wire transfer | 10-12% |
| Cash transfer operator (WU, MG) | 5-10% |
| Fintech (Wise, Remitly) | 1-5% |
| Crypto / stablecoins | <1% |
Why Costs Vary So Much by Corridor
A transfer of the same amount can cost 1% in one corridor and 15% in another. Key factors include:
- Competition: Major corridors (US→Mexico, US→Philippines) have dozens of providers competing, driving prices down. Niche corridors may have only 2-3 options.
- Banking infrastructure: Countries with robust mobile money systems (like Kenya's M-Pesa) enable cheaper delivery. Countries with limited banking require expensive cash networks.
- Regulatory costs: Anti-money laundering compliance, licensing fees, and capital requirements add overhead, especially for smaller corridors.
- Volume: High-volume corridors attract investment from fintechs. Low-volume corridors don't justify the infrastructure cost.
- Currency liquidity: Less-traded currency pairs have wider bid-ask spreads, adding to the exchange rate margin.
The Most Expensive Corridors
Sub-Saharan Africa consistently has the world's most expensive remittance corridors, with some exceeding 20% of the transfer amount. Corridors to Pacific Island nations are similarly high-cost. The most expensive corridors ranking shows exactly which corridors carry the heaviest burden on senders.
How to Send Money More Cheaply
- 1. Always compare total cost, not just the service fee. A provider with zero fees might offer a terrible exchange rate that costs more overall.
- 2. Use dedicated money transfer services. Wise, Remitly, WorldRemit, and Sendwave almost always beat banks on total cost.
- 3. Send larger amounts less frequently. Flat fees become a smaller percentage on larger transfers.
- 4. Check for promotions. Transfer services frequently offer zero-fee first transfers or loyalty bonuses.
- 5. Use our corridor pages. The corridor comparison tool shows the cheapest available option for your specific country pair.
Frequently Asked Questions
What is the average cost to send money internationally?
The global average cost to send $200 internationally is approximately 6.4% of the transfer amount, according to the World Bank Remittance Prices Worldwide database. This means sending $200 costs about $12.80 on average. Costs range from under 1% (cheapest fintechs) to over 15% (some cash operators on niche corridors).
How do banks compare to money transfer apps?
Banks typically charge 10-12% total cost (including service fees and exchange rate margin), while dedicated money transfer apps like Wise, Remitly, and WorldRemit charge 1-5% depending on the corridor. Using a fintech instead of your bank can save 50-80% on transfer costs.
What is the UN SDG target for remittance costs?
The UN Sustainable Development Goal 10.c aims to reduce global remittance transaction costs to under 3% of the amount sent by 2030. The current global average of 6.4% means we're still more than twice the target. Some corridors, particularly fintech-dominated ones, already meet the 3% target.
Worked example: putting the numbers together
Consider sending $500 to Mexico. Bank wire: $35 fee + 4.2% FX spread = $35 + $21 = $56 total cost, recipient gets pesos worth $444 at mid-market rate. Western Union: $5 fee + 2.8% spread = $5 + $14 = $19 total, recipient gets $481. Wise: $4.99 fee + 0.5% spread = $4.99 + $2.50 = $7.49 total, recipient gets $492.51. Remitly Economy (3-5 days): $0 fee + 1.1% spread = $5.50 total, recipient gets $494.50. Over 12 monthly transfers of $500, the difference between bank wire and Wise is $585/year, material for any household making regular remittances. The "no-fee" headline is rarely the lowest total cost.
Decision-weighted comparison
| Provider type | Avg fee on $500 | FX spread | Total cost | Speed |
|---|---|---|---|---|
| Bank wire | $25 – $45 | 3.5% – 5.0% | $45 – $70 | 1-3 days |
| Western Union agent | $5 – $15 | 2.5% – 4.0% | $18 – $35 | Minutes |
| Western Union online | $4 – $10 | 2.0% – 3.5% | $14 – $28 | Minutes-hours |
| Wise (TransferWise) | $4 – $9 | 0.4% – 0.7% | $6 – $13 | 1-2 days |
| Remitly Economy | $0 – $3 | 1.0% – 1.5% | $5 – $11 | 3-5 days |
| Xoom (PayPal) | $5 – $12 | 1.5% – 2.5% | $13 – $25 | Minutes-hours |
The advertised fee is the question the provider wants you to answer, what actually matters is what reaches the recipient in local currency, measured against the rate the banks themselves quote each other.
How to use PlainRemit to optimize your transfers
Start with how remittance fees work to grasp the fee-vs-spread architecture, then use the corridor-specific cost data to compare providers for your destination. The FX rate guide shows how to read mid-market rates and time transfers when rates favor you. For specific destinations, the Mexico corridor guide and Philippines corridor guide break down provider-by-provider costs. Every fee and spread we publish comes from World Bank Remittance Prices Worldwide quarterly surveys, the same dataset used by G20 finance ministries to track SDG 10.c.1 (remittance cost reduction targets).