Learn How Remitly Payments Work Free Guide

What Remitly Is and How the Service Operates

Remitly is a digital money transfer company that lets people send money to family and friends in other countries. Founded in 2011, the company operates as a licensed money transmitter in the United States and many other nations. Unlike traditional wire transfer services found at banks or physical locations, Remitly conducts transfers primarily through mobile apps and websites, making the process available from a computer or smartphone.

The company processes transfers to over 140 countries and territories worldwide. Money can be sent from the United States to recipients in countries across Latin America, Africa, Asia, Europe, and the Middle East. Remitly holds licenses in all 50 U.S. states, meaning the service meets regulatory requirements in each location where it operates. The company is owned by larger financial institutions and has been publicly traded on stock exchanges since 2021.

Remitly generates revenue by charging fees on transfers and by earning money on currency exchange rates. The company does not charge users for maintaining accounts or for inactive accounts. Transfers typically complete within minutes to a few business days, depending on the delivery method chosen and the receiving country's banking infrastructure. Recipients can receive money through various methods including bank deposits, cash pickups, and mobile money accounts.

The platform uses encryption and security protocols to protect user information during transfers. Users create accounts by providing identification documents and personal information, which the company verifies to meet anti-money laundering regulations required by U.S. law. These security measures are standard across the money transfer industry and help prevent fraud and illegal activity.

Practical takeaway: Remitly functions as a licensed digital service for international money transfers, operating under regulatory oversight in all U.S. states and following anti-fraud requirements.

Understanding Transfer Fees and Exchange Rates

Remitly charges fees based on the delivery method selected and the destination country. The company typically offers multiple delivery options for each receiving country, with faster delivery methods carrying higher fees. For example, a bank deposit transfer might cost $1.99 to $4.99 depending on the country, while cash pickup services may carry different pricing. Remitly publishes its fee structure on the website before users complete a transfer, allowing senders to see exact costs beforehand.

The company offers a promotional period for new users that reduces or removes transfer fees on the first transfer. This introductory offer varies by location and time period. After the promotional period ends, standard fees apply to all subsequent transfers. Regular users do not pay subscription fees; instead, charges only occur when money is actually sent.

Exchange rates represent another cost factor in international transfers. When converting U.S. dollars to another currency, Remitly applies an exchange rate that typically includes a margin above the mid-market rate. The mid-market rate is the rate financial institutions use to trade currencies with each other. Remitly's actual rate offered to users is displayed in the app or website before confirming the transfer, showing the exact amount the recipient will obtain after currency conversion.

The difference between the mid-market rate and Remitly's rate is called the markup or spread. This markup is how the company generates profit beyond transfer fees. Different corridors—meaning specific country pairs like USA to Mexico or USA to Philippines—may have different markups based on market conditions and demand. Senders should compare rates across different days and times, as rates fluctuate constantly in currency markets.

Users can see a comparison of total costs before confirming any transfer. The app shows the fee amount, the exchange rate being applied, the total amount the recipient will obtain, and the total cost to the sender. This transparency allows senders to make informed decisions about whether to proceed with the transfer at current rates.

Practical takeaway: Remitly's costs consist of transfer fees plus currency exchange rate markups, both of which are shown to users before confirming a transfer, allowing comparison of total costs.

Setting Up an Account and Verifying Your Identity

Creating a Remitly account requires providing personal information and verification documents. Users begin by downloading the mobile app or visiting the website and entering their name, email address, phone number, and date of birth. The company then requests address information and employment details. These initial steps take approximately five to ten minutes to complete.

Identity verification is the next step and is required by U.S. federal law for all money transmitter companies. Remitly uses multiple verification methods depending on the user's location and the information available. Most users verify identity by taking photos of a government-issued ID document such as a driver's license or passport using their phone camera. The photos must clearly show the document's information and the user's face.

Some users may receive requests for additional information during the verification process, such as a photo of themselves holding their ID document, bank account information, or details about the purpose of transfers. These requests help the company comply with anti-money laundering regulations. Verification typically completes within minutes to a few hours, though some accounts may take longer if additional information is requested.

Once verified, users can immediately begin sending money. The account information can be updated at any time through the app or website settings. Users should keep their contact information current, as Remitly uses email and phone for account security alerts and customer communication. Passwords should be strong and unique, following standard security practices for online financial accounts.

Remitly offers two-factor authentication, an optional security feature that requires entering a code sent via text message or generated by an authenticator app when logging in from a new device. Enabling this feature increases account security by preventing unauthorized access even if someone obtains a user's password. Users should consider enabling this protection if they send money regularly or if their account contains saved payment methods.

Practical takeaway: Account creation involves providing personal information and verifying identity with a government-issued ID, a process required by law that typically completes within hours.

Payment Methods and Funding Your Transfers

Remitly accepts multiple methods for funding transfers from the sender's account. Bank accounts are the most common funding source. Users link their bank account by providing account and routing numbers, which allows Remitly to debit the transfer amount directly from their checking or savings account. Bank account transfers typically cost less in fees compared to other payment methods and offer the lowest exchange rate markups.

Debit cards represent another payment option available in most U.S. states. Users enter their debit card number, expiration date, and security code to fund a transfer. Debit card transfers usually carry higher fees than bank account transfers. Some users prefer debit cards because they don't require linking a bank account and can be completed more quickly, with funds sometimes deducted within seconds.

Credit cards are accepted in certain states and territories. Like debit cards, credit card transfers typically carry higher fees than bank account transfers. Some credit card companies may classify transfers as cash advances rather than purchases, which could result in additional fees from the cardholder's bank or credit card company. Users should verify with their credit card issuer before using credit cards for money transfers.

Cash pickup represents an alternative for users without bank accounts or who prefer not to link accounts online. Some Remitly partners, particularly in specific regions, may allow cash deposits at physical locations. However, this option is not universally available in all areas. Users should check the app or website to see if cash payment methods are offered in their location.

Remitly stores payment methods on the account for future use, which means repeat senders do not need to re-enter information for each transfer. Users should review stored payment methods regularly and remove any that are no longer in use. The account settings include options to add, update, or remove payment methods at any time. For security reasons, Remitly does not store complete card numbers but rather uses a tokenization system that creates a secure reference to the payment method.

Practical takeaway: Multiple payment methods including bank accounts, debit cards, and credit cards can fund transfers, with bank accounts typically offering the lowest fees and exchange rate markups.

Delivery Methods and How Recipients Receive Money

Remitly offers several ways for recipients to obtain transferred money, with options varying by receiving country. Bank deposit is the most direct method, where money transfers directly into a recipient's bank account. This method typically requires the recipient to have an active bank account in their country. Bank deposits usually deliver within one business day, though some corridors offer same-day or next-day options for higher fees. Recipients receive notification of the deposit through their bank's normal channels.

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