Sending and receiving money is more convenient than ever. Gone are the days when you have to commute to your bank just to send money to a loved one or to pay for goods. Now that digital banking and online money transfers are available, all you have to worry about is which company to use. There are several reputable companies that offer online money transfer services. The differences, mainly, are the fees that you need to pay and how fast the transaction can be completed.
When you choose an online money transfer company to use, make sure that you do your research. Your needs should match that of the services offered by the company. Since there are quite a few of them out there, it could be confusing which one to choose.
Below are five companies that provide good services and reasonable transfer fees, including TransferWise and alternatives to TransferWise.
TransferWiSe. TransferWise can send money in multiple currencies. When you send money to another account in a different currency, this platform does not charge you with high fees unlike other platforms. They provide you with a borderless account using a peer-to-peer system so you can move funds without crossing borders.
With TransferWise, you can send a maximum of 49,999 USD and a minimum amount of 1 USD. The fees are not so crazy either. You only pay 3 USD for up to 300 USD transaction, and 1% for transfers above 300 USD up to 5,000 USD. After the initial 5,000 USD , you only have to pay 0.7% of the amount exceeding 5,000 USD. There are no hidden fees and their app is available for both Android and iOS users.
Using TransferWise is very simple and fast. All you need to do is register an account, provide the necessary information, and you can start sending money using your local currency and they will use the mid-market exchange rate.
WorldRemit. WorldRemit has gained popularity the past couple of years because of its cash pickup feature, which is convenient for people who don’t have bank accounts. You can send money directly to a bank account, do a cash pickup, get the home delivery service, or mobile airtime account transfer.
WorldRemit offers its services to more than 140 countries. The minimum amount for transfer is also 1 USD. However, it has a low maximum transfer amount, which is 5,000 USD. They also offer flexible payment options, which includes ApplePay, Android Pay, debit or credit card, and bank transfer. The transfer fee depends on the amount that you are sending, but the percentage that you need to pay is minimal. At the moment, they are serving 4 million customers.
All you need to do is create an account on their website and you can start sending or receiving money using the options mentioned above.
OFX. OFX was founded in 1998 and is based in Australia. It used to be named as OzForex when it was only catering to residents of Australia. They used to have different platforms for different countries such as UKForex, Canadian Forex, USForex, and NZForex. In 2015, they were all merged under one global brand which is the OFX. OFX now has offices in Hong Kong, New Zealand, Canada, US, and the UK.
OFX is available for personal use, business, and online selling. You can transfer your funds over the phone or online. Transfers could also be scheduled and they offer good rates. OFX only transfers to bank accounts. Cash pickup is not available using this platform. Also, some currencies may not be available online so you need to do your transaction over the phone. Phone assistance is available in many different countries. English is the only language available on the website.
XE. XE started their operations in 1993. The company is based in Canada, but they have offices in the USA and the UK. Dedicated websites are available for those residing in Australia, New Zealand, USA, the UK, and Canada. XE can is available in 170 countries and the website is available in many different languages.
You can sign up and create an account for personal use or business. One of the best things about XE is that when it is used for personal transactions, you pay no fee. They only transfer to bank accounts with competitive exchange rates. Expect the transfer to be completed in 3 to 5 working days. XE has a high maximum transfer amount, which is 500,000 USD. Scheduled transfers are not allowed, as well as same-currency transfers.
XE is best for people who are working in another country and want to send money to their loved ones back home. It is also ideal for businesses that transfer money to foreign countries.
PayPal. PayPal is probably TransferWise’s most formidable competition. Like TransferWise, PayPal has a low minimum transfer amount which is 1 USD. Paypal is used globally for online purchases as well as services. It supports wireless overseas transfers for up to 20 currencies across 200 different countries. What makes PayPal a little bit better than TransferWise is that it allows same-currency transfers. Residents within the US can transfer money within the country for free.
It is easy to use PayPal. You simply have to create an account and link your bank or credit card. You can then start making purchases or sending money. PayPal has strict security in place that prevents hacking and fraudulent activities. This is most probably one of the main reasons why many trust this platform.
PayPal fees depend on the amount being transferred. This means that the higher the amount you’re sending, the higher the fees that you’re going to pay. Cash pickup is also not available.
Online money transfers are reliable as long as you choose a reputable company. Many people have a need to send or receive money the fastest way possible and won’t cost too much. It could be for personal use or for commercial use. This is especially important for those who need to send money to different countries. Bank to bank money transfers can be costly and they take longer, leaving online money transfer the best option for most. So, before you choose which platform to use, make sure you have all the necessary information.