Looking for easy ways to send cash abroad? Perhaps you’re an expat or economic immigrant who needs to regularly transfer cash to friends and family back home? Or maybe you’re a businessperson who needs to transfer money internationally.
There are a number of options available to you when sending money abroad. Let’s look at the pros and cons of some of the most popular:
Bank transfers: This service has the advantage of convenience. You file a request through your bank’s online services, and – depending on the nature of the receiving account – the global money transfer is made within a matter of days if not hours.
But inter-bank fund transfers tend to have high fees, and exchange rates that can be bettered elsewhere.
Money Transfer Brands: Money transfer brands (or IMTOs) such as Xpress Money are designed specifically to transfer money instantly and safely to your destination of choice with very competitive fees and low overheads.
The advantages range from a wide network of destinations across the globe, multiple ways that beneficiaries can receive money, and some of the industry’s lowest fees.
Online transfer services: Online transfer services like PayPal are an secure, easy way of transferring money abroad. They offer the advantages of security, low overheads, and speed. Key disadvantages include accessibility and availability. PayPal and other services just aren’t available in many developing markets. Even when they are, the beneficiary needs to be technologically savvy to effectively deal with money transfers.
Mobile transfers: Brands like Xpress Money are innovating mobile money apps and mobile wallets. These services are excellent for emerging markets where bank coverage is patchy. They also work well in developed markets that are well on their way to going cashless, and most payments can be made directly from a smartphone. However, mobile money transfers haven’t gained as much traction as yet in markets where established alternatives – like money transfer houses and banks –already exist.
Although there are enough and more options available in the market, illegal modes of money transfer still exist. Some people hand over cash sums to friends/ acquaintances who physically go and hand over the amounts to the sender’s family back home. But this method doesn’t keep your money safe. There’s no proof, no transparency, and no guarantees. It’s therefore always better to transfer funds through licensed operators that ensure safety and transparency of your money.