One thing that has improved over the last decade is how we send money to other people globally. Thanks to technology, it is now easier to send money at a lower cost.
Remittance is one reason for money transfers. Usually, it flows from developed countries to developing ones. What can explain this is that immigrants who leave their home countries (usually developing economies) to seek greener pasture now send money to their loved ones at home.
But sometimes it is not always so.
I should point out that money also flows from less developed countries to more developed ones. This happens a lot more because of trade flows. It could be in the form of tuition payment for foreign students, or business activities, purchase of properties or other lifestyle needs.
Below is a graph showing countries where the highest remittances are sent and received respectively.
If you are interested in global commerce, there are other reasons why people send money to other people globally.
But, let’s focus on remittance.
I will explore major options for sending money globally to cater for remittances and also explore the cost.
1. Money Transfer Companies
Some money transfer companies include Western Union, Ria Money Transfer, and MoneyGram. If you can recall, in the last decade, this was the most popular method of sending funds abroad. They facilitated cross-border cash pick up and same day sending.
This method of sending money is ideal for people who need physical cash. But these services come with a high service charge to cover the cost of running physical offices across major locations and the exchange rates may not be favorable.
The reality is that these companies have had their peaks, especially with the availability of a faster and more secure way of sending and receiving funds internationally.
2. Inter-bank Transfers
Another way to transfer money to family or friends overseas is through inter-bank transfer. In this case, you will instruct your bank to transfer the funds to the recipient bank account details.
Some of the recipient’s details that you will be expected to provide include:
- Recipient’s Bank name – VoguePay Bank
- Recipient’s Account name – Scott Carr
- Bank’s Sort code, ABA number (for US banks) or SWIFT Code – 20********
- Recipient’s Account number – 0093******
Bank transfers can be a more convenient way to send money overseas compared to money transfer companies, but the cost associated with it is still high.
Some banks can charge as high as 7% in addition to unpredictable exchange rate. Also, the settlement time could span up to 3 working days to some regions of the world.
3. Online Money Transfer Companies
Online money transfer companies are simple, fast and safer way to send money to your family and friends overseas. These companies offer better transfer fee rates compared to banks and money transfer companies.
How much does it cost people to send money globally?
Use this article to build this out: https://www.finder.com/remittance-fees-global-world
As a leading payment company, VoguePay works with some of these providers to settle payment to its over 100,000 merchants network. In our quest to reduce the cost our merchants pay for offshore transactions, we are actively seeking out alternate options at a lower cost. Our team is excited to be making progress in this direction.