Peanut vs Western Union: Which Is Better for Sending Money to LATAM?

Compare transfer fees, exchange rates, and delivery speed side by side. Find out how much you can save.

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Peanut vs Western Union: Fees, Speed, and Rate Compared (2026)

Western Union has been moving money across borders for over 170 years. With physical agent locations in more than 200 countries and territories, it remains the go-to for people who need to send cash to remote areas or to recipients without bank accounts or smartphones. That reach is real, and no digital-only service fully replicates it.

But that reach comes at a steep cost. Western Union charges $5-15+ per transfer plus a 5-10% exchange rate markup, and delivery takes hours to days. Peanut charges no fees, converts at the cripto dolar rate, and delivers payments instantly through local payment networks like MercadoPago and Pix. For anyone sending money to Argentina or Brazil where the recipient has a smartphone, the savings are significant.

Quick Comparison

Exchange Rate: Cripto Dolar vs Western Union Markup

Western Union builds its profit into the exchange rate. The posted rate typically includes a 5-10% markup over the mid-market rate, which means the recipient receives 5-10% less in local currency than the actual market value of the dollars you sent. This markup is in addition to the transfer fee.

Peanut converts digital dollars to local currency at the cripto dolar rate — a direct market conversion that bypasses regulated exchange rates. In Argentina, the cripto dolar yields approximately 5-8% more pesos per dollar than the MEP rate used by banks and credit cards (estimate, as of 2026), and is substantially better than Western Union's marked-up rate.

Combined, the rate markup plus the transfer fee makes Western Union one of the most expensive options for sending money to Latin America. Here is how the numbers compare as of February 2026:

• $200 transfer to Argentina: Western Union costs roughly $225-244 after fees and rate markup. Peanut costs approximately $200. The recipient gets $25-44 more.
• $500 transfer to Argentina: Western Union costs roughly $555-585. Peanut costs approximately $500. The difference is $55-85.
• $1,000 monthly remittance: Western Union costs roughly $1,065-1,115 per month. Peanut costs approximately $1,000. Over a year, you save $780-1,380.

In Brazil, Peanut is also not subject to the Tax on Financial Operations (IOF) — up to 3.5% on outbound transfers — which applies to traditional transfer services. On a $1,000 outbound transfer, that alone saves roughly $27.

Fees: Peanut Free vs Western Union $5-15+

Peanut charges no fees on any operation. Deposits, local payments, withdrawals, and person-to-person transfers are all free. There is no minimum balance and no monthly charges.

Western Union charges a transfer fee of $5-15+ per transaction, varying by transfer amount, destination, and payment method. Paying with a debit card or credit card may incur additional fees. This transfer fee is on top of the exchange rate markup already built into the posted rate.

For smaller transfers — the kind families often send — the fee represents a larger percentage of the total:

On smaller amounts, Western Union's fixed fee hits harder. A $100 transfer that costs $120-130 total means losing 20-30% of the intended value.

Local Spending and Delivery

Western Union delivers money, but it does not help the recipient spend it efficiently. In most cases, the recipient picks up physical cash at an agent location or waits for a bank deposit. Cash pickup means a trip to a physical office, waiting in line, and then carrying cash — which introduces safety concerns, especially with larger amounts.

Peanut connects to the local payment systems that people actually use every day:

• Argentina: Scan any MercadoPago QR code at over 1,000,000 merchants — supermarkets, restaurants, kiosks, pharmacies, and street vendors. Or withdraw pesos at Red ATM locations with a cardless QR code. No DNI required, no local bank account needed. Money arrives instantly.
• Brazil: Scan Pix QR codes at restaurants, supermarkets, gas stations, and ride-hailing services. Pix is the default payment method in Brazil with over 150 million users. No CPF required, no Brazilian bank account needed. Payments settle in seconds, 24/7.

With Peanut, the recipient does not need to visit a physical location, carry cash, or wait for a bank deposit to clear. They receive funds instantly and can spend directly at merchants.

Where Western Union Wins

Western Union has advantages that a digital-only service cannot match.

Physical cash pickup in remote areas. With over 500,000 agent locations worldwide, Western Union reaches places where digital payment infrastructure does not exist. If the recipient is in a rural area without reliable internet or smartphone access, Western Union may be the only option.

No smartphone required. The recipient does not need a smartphone, a bank account, or any app. They walk into a Western Union office with an ID and a tracking number and collect cash. Peanut requires both sender and recipient to have smartphone access.

Brand recognition with older demographics. Western Union has been operating since 1851. For older family members who may not trust digital-only services, the Western Union name carries weight. The physical storefront provides a sense of security that an app-only experience does not.

Works for recipients without bank accounts. In areas with limited banking infrastructure, the ability to hand someone cash without any financial account is a genuine advantage. Peanut requires the recipient to either have a smartphone (for MercadoPago/Pix) or access to the app to claim a payment.

Established in 200+ countries. Western Union's network spans more countries than any digital payment service. For corridors outside Latin America and Europe, Western Union may be the only realistic option.

When to Choose Peanut vs Western Union

Choose Peanut if:

• Your recipient is in Argentina or Brazil and has a smartphone
• You want to avoid the $5-15+ transfer fee entirely
• You want a better exchange rate (~5-8% better than MEP in Argentina, estimate 2026, versus Western Union's 5-10% markup)
• You want instant delivery instead of waiting hours or days
• Your recipient can use MercadoPago or Pix to spend directly
• You are a tourist, digital nomad, or remote worker who needs to pay at local merchants
• Safety matters — no need to carry physical cash

Choose Western Union if:

• Your recipient does not have a smartphone or reliable internet access
• Your recipient lives in a remote area without digital payment infrastructure
• Your recipient does not have a bank account and needs physical cash
• You need to send money to a country where Peanut does not yet operate
• The recipient prefers or trusts the physical cash pickup experience

Use both if you send to different people — Peanut for recipients with smartphones in Argentina or Brazil, and Western Union for recipients who need physical cash in remote locations.

Disclaimer

The information on this page is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax treatment of digital asset transactions varies by jurisdiction and may change. Consult a qualified professional for advice specific to your situation.

All fee and rate comparisons are based on publicly available information as of February 2026 and are example estimates only. Competitor pricing, exchange rates, and features may change. Actual savings depend on the amount, corridor, timing, and market conditions. Check each provider's current pricing for the most up-to-date information.

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No fees. No rate markup. Instant delivery to Argentina and Brazil.