The Investing for Beginners Podcast - Your Path to Financial Freedom Remitly vs Wise: The Remittance Battle
Aug 21, 2025
Brett Schafer, who runs the Chit Chat Stocks Newsletter and Podcast, dives deep into the remittance rivalry between Remitly and Wise. He breaks down their business models, revealing how each company captures market share through innovative strategies and lower fees. Brett discusses the impact of technology, stablecoins, and potential risks faced by both firms. Additionally, he offers insights into their growth trajectories and investment valuations, giving listeners a keen look at the future of international money transfers.
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Different Target Customers And Models
- Wise targets digitally native cross-border customers and disrupts bank wire fees with a digital-only model.
- Remitly targets migrant workers and offers physical cash payouts in lower-income countries to replicate Western Union's reach at lower fees.
How Wise Settles Transfers
- Wise uses local bank balances on both sides of a corridor to settle transfers instantly for users while netting bulk movements later.
- That ledger-netting model avoids moving actual currency for every transfer and speeds up user experience.
Rapid Growth With Large Runway
- Both companies grew from small revenues into ~$1.5B ranges by taking share from legacy players.
- Each still controls only ~3–4% of global remittance market, leaving long runway for growth.
