Send money abroad online instantly | What are the best alternatives to money transfers?
4 money transfer alternatives that work instantly
4 money transfer alternatives that work instantly
Are you moving to Ireland or have you recently moved here? Chances are you’ll send money back home. Perhaps you’re already doing it, making sure your family back home has what they need. The question is, what is the best way to send money back home? Money transfer is the best-known method of sending money across borders. In this article, we’ll explain what it is and how you can use it. We’ll also talk about some of the up and downsides to money transfers.
Lastly, we’ll look at some alternatives to money transfers. If you’re looking to find the quickest, easiest and cheapest way to send money back home, read on.
What are Money Transfers?
A money transfer is when you send money from one bank account to another using your (online) banking service.
This can be done domestically, or internationally. Domestic money transfers are often quick, cheap and easy. In the case of the EU this even extends across EU countries with the implementation of the SWIFT system. International money transfers take longer, and cost more. Banks need to communicate with each other to verify the funds. This makes it more complicated and costly for them and ultimitely for you.
Pros and Cons of Money Transfers
As mentioned above there is some criticism of international money transfers. But what are the pros and cons exactly to using the service?
Money transfers are popular because they are quick and easy in a lot of cases. You can do a money transfer in your regular online banking environment. So it’s not a new system to learn. Money transfers are also a way to send money online instantly, at least domestically or across the EU.
One big downside to money transfers is that they are not free. Costs come down on two sides. Of course your bank charges you administrative costs to send the money, but they can also use unfavourable exchange rates when sending money and exchanging it from one currency to another.
Another downside to Money transfers is that you can’t send money online instantly, at least not always internationally. It takes a while for a money transfer to arrive at your intended target. If the person your sending it to needs the money now and lives outside the EU, a money transfer will turn up too late.
The last downside comes down to the recipient. A money transfer shows up on their bank account as regular money. They can spend it on anything they like. If you specifically send them money for their mobile phone bill or for school, you can’t be sure they won’t spend it on something else.
So what are the pros and cons of money transfer?
Pros
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Easy to use in your regular banking system.
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Quick when sending money domestically or within the EU.
Cons
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Expensive, especially when sending money abroad.
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Can’t send money online instantly when sending money internationally.
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Can’t be sure what the recipient spend the money on.
Alternatives to Money Transfers
Given its up and downsides, what are the alternatives to money transfers when you want to send money online instantly?
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PayPal
PayPal is one of the best known online payment systems in the world. It works as a digital wallet that is connected to your bank account or credit card. With it, you can send money internationally to any other PayPal account. All you need is the recipients email address.
The biggest upside to PayPal, when compared to money transfers is that the recipient receives the money immediately. That means you can send money online instantly with PayPal, no matter where you or the recipient are.
However, a downside is that PayPal has similar costs and exchange rates as money transfer has. That means, depending on where you are sending money to, PayPal can be quite expensive.
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Remitly
Another alternative to money transfer is remitly. It’s a service specifically for sending money abroad. All you need to do is create a remitly account. Then you can choose where you want to send your money to and how. There are two tiers. Economy transfer is cheap, but takes 3-5 days before the recipient gets their money. Express works instantly but costs more money.
Direct costs of remitly are cheaper than money transfer or PayPal. However, just like those options, Remitly inflates exchange rates to make money, making it a bit more expensive.
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Gift Cards
You can also send gift cards abroad. Buy a gift card and email the code. That email will arrive instantly. So the money can be used immediately. Not only that, but gift cards stay the same in value, no matter where they are used. So exchange rates can’t be used against you. As an added benefit it’s easier to control what the money is used for when sending a gift card, because gift cards can often only be used for specific things.
You can buy gift cards right here on Recharge.com. See the selection of gift cards we have on offer. You can also send a prepaid credit card, which the recipient can use to top up an online wallet. You can find the selection of prepaid cards we have on offer below.
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Mobile Phone Credit
Similar to gift cards, you can also directly top up someone’s phone abroad. If you’re sending them money for their phone bill, you can just do that directly. You can find international top ups below.
The benefit of topping up someone else’s phone is that it’s instant and cheaper than most of the alternatives, including international money transfers.
Written by
Ravian Ruys
