In this age of globalization, remote employment, and super-fast business activities, the importance of transferring money across the world cannot be overstated. Digital money is transacted from one end of the planet to the other in billions on daily basis. Hundreds of banks, financial apps, and internet-based platforms offer a range of products to facilitate and incentivize money transfers.
However, for a first-time user it is a cumbersome process to choose a reliable service, fast, and charges less. While the selection of a transfer method depends on various factors, such as amount, place of origin and destination, type of depositors and senders accounts, etc. there are a few technical things you must know before selecting a transfer method.
Choosing a method to transfer money
If you are collecting information on how to transfer money from Europe to the United States, this article may be the best place to start with. In case the amount you wish to transfer is below less than USD 3,000 or an equivalent sum in another currency, the best option is to use a wire service. Western Union and Money Transfer both offer money-transferring services to the United States. The services come with a very minor fee, depending on the destination in the US and the amount.
On the other hand, if the amount is higher than USD 3,000, the best method would be using a bank. International Banks such as Standard Chartered, Barclays, First Union, etc. To use a bank, you and the receiver must first have an account in the same bank, or its subsidiary or partner in the United States. Note that sometimes, banks may have a presence in the US, but not in the state or city you wish to transfer to. Additionally, the money transfer will be deposited in the receiver’s account directly in his/her home currency and the home country conversion rate at that time will be applied.
Besides banks and wire transfers, many mobile applications and web platforms also transfer money. For an amount less than USD 1,000, these platforms and apps come in very handy and only take seconds to complete a transaction. Paypal, WorldRemit, CashApp, Venmo, Meta Pay, etc. are a few applications that are popular in this category. Especially, payments made to freelancers are made through these apps, as many bidding sites such as Freelancer, Fiverr, etc. are integrated with these, and money transfer is convenient, safe, and swift.
Process of transferring money through wire transfer, web service, mobile application, and bank
Each method to transfer money is different from the other, hence the steps to follow differ widely. Here we discuss the general steps involved in each method of money transfer. While using wire services, you must know the name and address of the recipient’s bank, IBAN or SWIFT code, the reason for the transfer, currency, and amount, It is also important to clarify which party will bear the charges, the sender or the recipient.
With mobile applications, fewer steps are involved. Since both the sender and the recipient are assumed to have an account registered with the application, the information is already in the database. It is understood that both parties are verified users, and have sufficient funds for a given transaction. Therefore, all the sender needs to do is to log in to the website, choose the transfer type (abroad or local), provide the receiver’s ID, mention the amount, authenticate the transaction through OTP, and hit send. That’s it, within no time the transaction will reflect in the statement at both ends.
Evolution and facts about the international money transfer market
The total money transferred annually is approximately US 500 B. A whopping number that earned nearly USD 38 B in terms of state fees. The transaction cost of each transfer fluctuates between 5-7% depending upon the medium used. While banks may charge a premium, web platforms and applications are usually very cheap.
