When transferring money overseas, a popular service used is to send it to a bank account directly. But this may not be a viable option in certain instances. While having access to a bank account is taken for granted in some countries, it’s not as common in others.
According to 2017 Global Findex Database released by the World Bank, almost 1.7 billion adults across the globe remain unbanked. Most of the unbanked adults belong to developing economies. China and India claim the most significant shares of the global unbanked population at 13% and 11% respectively. Things have been looking promising in both the countries for the past two years due to new government laws promoting awareness about bank accounts and their uses. However, Asia as a whole, still struggles with bank transfers. Indonesia and Pakistan account for 6% of the global unbanked population each. But this deficit of bank accounts is only limited to Asia, for you would find a similar rate of 4% in Nigeria and 3% in Mexico too. This may be a problem when one intends to send money overseas to these countries.
Other than the lack of awareness and access to banking infrastructure, there could be other factors at play. Maybe someone has recently moved to a new country and hasn’t had the chance to go through banking formalities. There could also be times where people may have to travel far to get access to a bank due to poor infrastructure and connectivity. The question of the hour, however, is how you can send money transfers to someone without a bank account.
Let us look at the alternatives on how to send money to someone without a bank account and the costs incurred to do so.
Collect cash from a money transfer agent
One option is to send cash that the receiver can collect from a money transfer agent at the other end. The advantages are clear- it’s affordable, instant and a convenient way to transfer money overseas.
However, it is essential to choose a trusted service to conduct a secure transaction to avoid fraud. After all, if you’re sending money to a family member back home, you want to make sure they receive it. This is even more crucial when dealing with large sums of money.
An authorised money transfer agent like Xpress Money will give you a 16-digit Xpin which you have to share with the recipient. This pin, along with proof of identification, is required to collect the money.
Another aspect to consider when sending cash is that the recipient has to have an agent nearby from whom they can easily collect the amount. So, the broader the network of agents, the more convenient it is for whoever you’re transferring money to. With over 200,000 agent partner locations spread across 170 countries, our extensive network ensures recipients are not inconvenienced.
Send money directly to a mobile wallet
Another option for those who do not use a bank account is to transfer money directly to a mobile wallet. A mobile wallet is an app which stores money and makes payments digitally. The receiver would then be able to pay bills online and make purchases in a shop from their phone. When you use Xpress Money, you can send money to mobile wallets in Kenya , Ghana, Nigeria, Uganda, Tanzania, Cameroon, Burundi, Benin, Zimbabwe, Senegal, DR Congo and Fiji.
In case they need to be liquidated, the recipient can arrange for a cash pickup or withdraw the cash from an agent location. This may be the cheapest option around for those who are tech-savvy and can acquaint themselves with ecommerce. More and more people have been inclining towards e-wallets, given that the recipient is not charged any extra fee or transaction costs. However, this service is not available in all countries.
Deliver to the receiver’s doorstep
To make life as easy as possible for the receiver, you can also arrange to have the money delivered to beneficiaries directly at home. It is a convenient alternative to the traditional cash pickup method.
To do this, you would need to provide your IMTO (International Money transfer Operator) details about the receiver’s address. Xpress Money currently provides this service in Vietnam.
Use pre-paid card services
While the most commonly known and used pre-paid card services would insist upon having your bank account details, some may make an exception. This would require thorough research and valid documents. While it also depends on the location of transfer on both the ends, there are certain restrictions on the amount you can transfer using pre-paid card services. It also depends on the currency being transferred from and into, the sender and receiver’s location and who you choose as your operator. This process is not very popular and finds most of its audience in the European Union.
Send money by post
A rather old school method, sending money by post still remains an available option. You could withdraw cash and post it to your recipient’s door. There is a reason why this option remains the last on this list. It isn’t quite as fast as other options, nor is it that safe.
We are lucky to live in an era where the process of sending money is so seamless and the options available are many. A few decades ago sending money to someone without a bank account was a rare occurrence. Today, we can choose to send cash, send money to a mobile wallet or even have it delivered to the beneficiary’s home. Technology and international money transfer organizations like Xpress Money have made it possible and extremely convenient for people to access their money. To get more information on how you can safely transfer money overseas through Xpress Money, click here.