Today’s globalised world is witnessing the mushrooming of revolutionary technology that is easing the lives of people at the click of a button. International money transfer was one such godsend for expats. We tend to take for granted the convenience it offers, so it’s hard to imagine how cumbersome the process used to be before the emergence of instant money transfer services.
How things used to be
Before the slow and steady advancement of technology, sending money internationally was no easy feat. Expats, business executives, and international investors had to endure immense trouble to pay employees abroad, buy services, or even park funds in a new offshore account. Let’s look at how the process of transfer of money overseas evolved over time.
In what was known as the hawala system, money used to be informally transferred to an agent, who sent it through trusted friends or other agents to the actual source. Dating back to the 8th century, this system was originally more used in the barter of goods and services. Eventually, its popularity grew for transferring currency. This was when banks decided it was time to step in and figure out a hassle-free method to help their customers transfer money overseas.
Telegraph-based international money transfer was initially introduced in 1851. Slowly, by 1950, credit cards became the best way to transfer money internationally. It was a trusted way to pay for services without the actual exchange of cash. Though the system was quick, it was plagued by exceptionally high fees and connectivity issues.
International money transfer today
These days, there are many easy ways to send money. But if you are wondering what the best way to transfer money internationally is, then remitting money via a global money transfer platform is the most preferred choice, and for good reason.
Whether it is via a bank, a mobile wallet, to be picked up in cash or direct cash delivery at the recipient’s doorstep, this service is reliable, user-friendly, and inexpensive. This system of global money transfer is transparent and convenient. There are also no hidden fees, making it an affordable and convenient way to transfer money to your family anywhere in the world.
Additionally, money transfer companies have taken appropriate measures to ensure all international money transfers are carried out safely and securely. For instance, transfers carried out through Xpress Money are encrypted with a unique 16-digit XPIN. This method not only offers security, but also allows customers to track transactions and keep a check on where the money is going.
Read also: 5 Things to look for when making International Money Transfers
Types of international money transfer
A key advantage of international money transfer that everyone will appreciate is the value for money. Availing this service through banks could be a little expensive. Money transfer companies, on the other hand, offer lower transfer costs and a relatively easier process. They also offer exchange rates that are more competitive, allowing customers to send money internationally. Compare the options and weigh the pros and cons to find a platform that serves your needs better:
Bank wire transfer: This mode of electronic transfer requires both parties to have bank accounts. It is safe and secure and allows you to send money internationally, either online or in person. Although this medium of transfer is convenient for both remitter and receiver, the fees charged can be a little higher.
Bank transfers are a safe option for those who wish to send large amounts of money from one bank account to another. With no threat of hackers or fraudulent agents, it is also an ideal option for businesspersons looking to wire money internationally to other businesses.
Online payment portals: With this mode, money transfer can be made within seconds, at the click of a button. You would need the recipient’s personal details, such as their email ID or phone number before making such a transaction, which is a fairly simple process. The transaction fee and the exchange rate are transparent and are included in the amount remitted.
This method is safe and quick. It is used to transfer small sums of money by businesses to pay contractual employees working overseas.
Instant cash transfers: Global money transfer operators offer secure transactions that are instant, reliable, and affordable. They are typically non-banking entities who help transfer money through collaborations with banks and a network of agents in different countries. Money transfer operators such as Xpress Money have 200,000 agent locations spread across more than 170 countries. Your money can be instantly remitted to be collected in cash or can be sent to a bank account, mobile wallet, or even delivered to the recipient’s doorstep.
Depending on the location, the sender can choose how the recipient can receive the money. Services like cash pick up where recipients can collect the amount from the nearest branch makes sure that money transfers can reach even remote locations with minimal internet access. The charges are generally lower than other money transfer services, making it a popular choice among expats who wish to transfer money overseas to their home country. It is one of the easiest ways to send money internationally at a very affordable cost.
