Remittance Rivalry: Remitly vs. Wise

This chapter explores the competitive dynamics between two leading remittance services, Remitly and Wise, focusing on their unique business models and target markets. It examines the strategies employed by both companies to capture market share from traditional players by offering lower fees and innovative services. Through a detailed analysis of their growth trajectories and technology advancements, the discussion highlights how these companies are positioning themselves for future success in the remittance industry.

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In this episode of the Investing for Beginners podcast, Brett Schafer joins the discussion once again to compare Remitly and Wise, two leading companies in the remittance industry. The conversation covers their business models, market strategies, strengths, weaknesses, and competitive positioning. Listeners will learn about the growth trajectories of both companies, the role of technology in their services, and potential future developments, including the impact of stablecoins. Brett also offers insights into the valuations and business potentials of both companies.

00:00 Introduction and Overview

00:38 Remitly vs Wise: Business Models and Market Share

01:22 How Remitly and Wise Operate

04:16 Market Competition and Growth

18:11 Cost Structures and Take Rates

24:22 Potential Risks and Challenges

25:52 Remitly's Challenges and Comparisons with Wise

29:25 Impact of Stable Coins on Remitly and Wise

29:38 Understanding Stable Coins and Their Role in Payments

31:03 On-Ramp and Off-Ramp Challenges with Stable Coins

42:18 Valuation and Investment Insights for Remitly and Wise

46:42 Product Development and Future Prospects for Remitly and Wise