Sending money worldwide is now easier than ever before. With the digital revolution taking over the banking and finance arena, allowing people to move freely from one country to another in search of a better life, sending money home to your loved ones is now faster, simpler, and more affordable than ever before as traditional banking methods and money transfer processes become outdated.
Today, you can make international money transfers from the comfort of your home or on the go using innovative digital apps that can easily be installed on your smartphone.
How has this not taken over the world by now? Well, despite technological advances in the financial sector, it seems that many consumers don’t know how to send money overseas without the hassle of dealing with a bank clerk in person.
Don’t worry, this is exactly what we are here for. If you want to know how to wire money overseas quickly and trouble-free, take a look at these four methods that sum up all of your options.
Traditional: Bank Transfer
You know the drill. Go to the bank, wait in line, talk to a clerk, sign a bunch of paperwork and you’re done. This process probably takes about two hours of your time and costs a substantial cut of the amount you send. Also, sending money overseas through the bank has limited options to send or receive cash. For instance, you cannot send money for cash pickup or to a mobile wallet.
The good news is that most traditional banks are now becoming more innovative and are starting to offer e-banking services. This tech advancement definitely helps with the long time it takes to actually make a financial transaction. However, it does not necessarily help with the cost as banks notoriously have higher exchange rates and their fees per transaction are often higher when compared to other online financial services.
Innovative: Tailored digital banking
You can use your smartphone to book a taxi, listen to music, and even diagnose some diseases. Why not use it to manage your finances and send money home? Using an online banking service is not only the most advantageous option you can choose to transfer money abroad, but also it is probably the cheapest, fastest, and safest choice.
Today, there are several apps and platforms that offer financial services, each addresses a different type of audience. The great part is that each platform tailors its services to the needs of its audience. Take Rewire, for example; this financial services platform is designed for migrants worldwide, meaning all of the services it offers match the unique needs of migrants. Thus, it offers low fees that are up to 1% of the transaction, customer service in several languages such as Tagalog, Thai, and Chinese to name a few, as well as additional unique services.
With low fees for banking services and competitive exchange rates, online platforms enable you to transfer money from your bank account, from your credit card, from your debit card, or a third-party bank account with a few simple screen taps.
Physical: Cash deposit and pickup
Cash deposits and cash pickups are usually done at a small office in the middle of a metropolitan. These offices are usually part of a global chain of a financial corporation that specializes in international money transfers. While some of these corporations have launched online services, they seem to have failed to adjust their pricing. Such companies tend to be on the pricier side, even when compared to traditional banks and online-only banks.
The plus side is obvious – your money is safe in the hands of an established institution. Also, these companies usually offer same-day cash pickup, and you can send money conveniently from an online account connecting a debit or credit card when you cannot use the cash-in-person option.
The downside is the high fees and the limited access to physical stores, as in most cases, offices can only be found in the metropolitans and not in the smaller towns. Plus, they do not offer competitive rates and are even considered to have steep exchange rates and may charge additional fees for rush payments.
Digital: Online payments
While online payment platforms such as PayPal and additional alternatives have been around for a while and are considered a very popular option to send money abroad with, these are usually used for business transactions and online purchases.
Online payment platforms tend to have high fees. Not for the sender, but for the receiver. The company calculates its prices based on the amount you send and takes its cut, which can be as high as 5% of the amount, sometimes even more.
Overall, there are plenty of ways to send money overseas. As each method has its own advantages and disadvantages, the important thing for you is to weigh in the pros and cons of each and decide which method works best for you, and for your future plans.