Sending money across borders is a common need. You may have to support a family, pay for a service, or buy a product. The old ways of sending money internationally are slow and costly. But worry not. In today’s digital world, you have many choices, each with different pros and cons.
In this article, we will discuss some of the most efficient ways to transfer money internationally.
1. Digital Wallets
Applications like PayPal, Wise, or Revolut are game changers. They allow you to set up an account in minutes. Then, you can link your bank card or account with the application and send money to many countries with a few taps.
The fees of digital wallets are clear and often low. The exchange rates are also fair and close to the real market rate. But the transfer speed varies in different digital wallets. Some transfers are instant, while others take a day or two. Digital wallets are a top pick for regular and small-to-medium money transfers. This method is fast, cheap, and easy to use.
However, if you want to know more about international money transfers, read a detailed blog post on the SoFi website. It will give you valuable insights, helping you make informed choices.
2. Crypto-currency
Cryptocurrencies are the safest and most convenient way to transfer funds. You can use any digital coins like Bitcoin or USDC. To transfer funds, you buy crypto with your local cash. Then, you send it to the recipient’s digital wallet address. And they can then swap it for their local cash.
The key benefits of sending money through cryptocurrencies are speed and low cost. You can send funds in minutes. However, the big hurdle is learning how to send. Both you and the person you send to must know how to use crypto. Additionally, the value of coins you hold can also swing fast. Cryptocurrency is best for tech-savvy people who value speed over ease.
3. Peer-to-Peer Platforms
These services cut out the middleman and connect people who want to swap cash directly. You say you want to send US dollars and get euros. The platform finds someone who wants the opposite trade.
You send your cash to their local account. They send their cash to your local account. Fees are very low in this method, and rates are set by the users. Peer-to-peer transfer can be fast, but it needs trust in the system’s rules. It is efficient for those who do not have any issues with a non-bank process.
4. Traditional Banks
Sending money through traditional banks is the old way. To send money, you can go to the bank or use its online site. You give them the details of the person abroad, and they send the cash.
No doubt, bank transfers are safe and familiar. But it is often the worst choice for speed and cost. Banks charge high fees. They use poor exchange rates, and the money transfer can take five to seven days. So use this only if you have no other option, or for very large sums where bank safety is required.
