Discover alternative ways to send money overseas beyond traditional money transfer services. Millions of individuals globally depend on financial support from family members working in foreign lands. Transferring funds internationally offers numerous methods, though some can be pricey or challenging to utilize. This guide reveals the simplicity of international money transfers and how you can assist your kin.
Money transfers abroad encompass a myriad of facts and statistics. It's commonplace in multiple countries for migrant workers to remit substantial sums back home, totalling over $500 billion annually. Indian expats, for instance, send back more than their nation garners from exports of diamonds, clothing, and rice. Similar trends are observed in the Philippines, Guatemala, and even within the European Union in nations like Romania.
The World Bank's 2020 data highlights the top global recipients of remittances - with India receiving $77.4 billion, followed by countries like Mexico, Egypt, and the Philippines. Generally, these funds transfer in moderate amounts, with $200 being an average transaction.
For international money transfers, banks, postal services, money transfer firms, and mobile money are prevalent choices. Each mode has its merits and limitations, from the ease of online bank transactions to the instant cash availability through money transfer companies like Western Union, to the innovative mobile money system seen in services like Kenya's M-Pesa.
However, the actual cost of sending money overseas can vary widely. Hidden fees within exchange rates make it difficult for customers to discern the best prices. On average, sending $200 incurs about $12.60 in fees, according to the World Bank's 2021 report, with digital transfers often proving to be a less expensive option.
Not all instances are suited for money transfer services due to high fees or required identification documents. Sending and receiving money can sometimes be inconvenient or lack control over how the money is used. As an alternative, sending online credit - such as mobile top-ups, gift cards, or prepaid credit cards - may circumvent these issues, providing a focused purpose for the funds and reducing international transfer fees.
Mobile top-ups allow for direct crediting of funds to a recipient's phone from abroad, maintaining contact without the need for cash collection. Gift cards and prepaid cards offer immediate and flexible credit use in various countries, such as paying bills or taxes with Amazon Pay in India.
To save on costs when transferring money internationally, consider shipping larger amounts to reduce fees, check the real exchange rates beyond what providers advertise, and consider online credit alternatives to avoid the hassle and additional expenses.
