Every year, tens of billions of dollars are sent from the United States to individuals in low and middle-income countries. Remittances are a crucial part of these countries’ economies, and the United States is the leading source of these remittances.
One of the challenges with sending money electronically is that there are fees. A seven percent transfer rate of $1,000 means that your loved one gets $70 less. Additionally, sending money via bank transfer to other countries can be slow. Thankfully, several options are available for people looking to send money online.
PayPal
PayPal is the premier peer-to-peer money transfer application. Funds are transferred instantly to the recipient’s PayPal account and can quickly be transferred to their bank account. If the recipient is not looking to link their bank for PayPal, they can spend their PayPal balance as if it was money. PayPal has more registered users than other peer-to-peer money transfer applications.
PayPal has hefty international fees. It is best to send money to people within the United States. There is no limit on the total amount of money you can send via PayPal. However, individual transactions cannot be more than $10,000. According to the experts at SoFi, “Before using a P2P service, it can be a good idea to familiarize yourself with the company’s fees, timing, and limitations.”
Zelle
Zelle is the answer to how to transfer money from one bank to another. A wire transfer from one bank to another can take days to process. However, Zelle lets you complete the transfer in just a few minutes. There are thousands of financial institutions in the Zelle network. This means that most banks have access to fee-free transfers. In the second quarter of 2019, Zelle accounted for over $40 billion in transfers. If a recipient is already enrolled with Zelle, they can receive their funds in minutes.
WorldRemit
This is an excellent tool for sending cash internationally. You are responsible for watching exchange rates and fees. WorldRemit has low cash transfer fees and has a better exchange rate than other services. Currently, you can send money to people in over 140 countries.
To use the service, you need to open a free account with WorldRemit. You can fund your transfer from your bank account, Google Pay, credit card, Apple Pay, debit card, and several other financial institutions. Transfer fees will vary based on where you are sending the money. Most transfers are instant. Some locations can take between 27 hours and seven days to receive the money.
Choosing the Best Service For Your Needs
Sending money domestically and internationally does not need to be overly complicated. Consider various factors when sending cash to the developing world, like how not all money transfer services are available in each country. It is up to you to search for competitive exchange rates and find cash pickup locations that are convenient for your recipient.
With money transfers, some companies are slower than others. So it might be best to spend a little bit more to get money for friends or family members who urgently need it.
