In the modern economy with a lot of commerce happening through the internet and a lot of skilled professionals becoming part of the gig economy, global payments are of significance for everyone. For businesses that need to pay suppliers and receive payments from a global customer base to digital nomads that are constantly on the move and need to receive payments in different locations in different currencies, getting payments across the globe can be a confusing thing.
Combined with the fact that forex rates change several times a day, people are at risk of losing a conservable amount of money due to exchange rates. Moreover, depending on the medium that you are transferring money through, you might also have to pay hefty transfer fees. Considering that businesses and even digital workers need to transfer payments on a regular basis, this can mean a lot of unnecessary expense if they aren’t doing it the right way.
Rather than learning it the hard way, have a look at our list of the best ways to transfer money across the globe and start optimizing payments today.
1. Bank Transfers
Definitely, the oldest method for transferring payments across your local country and the world at large, this form of money transfer has its pros and cons. While bank transfers do give you a massive reach, you can pay to anyone anywhere in the world as long as they have a bank account to receive the money in.
Moreover, it’s also one of the more economical ways to pay money if you are transferring large amounts. The biggest limitation with using bank transfers for international payments is the time that it takes for the money to reach the receiver. Depending on where you are sending from and where you are sending to, it could take anywhere from a day to a full week to get the money transferred.
Moreover, if you are only sending over a small amount, then it can be an expensive way to transfer since bank transfers usually have a fixed international transfer fee. However, they do offer some brilliant rates and you can transfer anywhere in the world. If you are paying large amounts on a regular basis, and the receiver can wait a few days, this is the best way to go.
2. P2P Payment Platforms
With the rise of the internet, the online economy has exploded as more visitors than ever are using platforms to conduct e-commerce by selling products and services. Traditional banks were slow to create solutions that catered to this new economy and P2P payment platforms cropped up to solve the problem for online buyers and sellers.
While these platforms have very low transfer fees and many are free, the financial team at OANDA Business Information & Services Inc. advises people using these services to keep an eye out for conversion rates, as this is where most users lose money.
In some cases, it’s not that the P2P platform has poor conversion rates but they are working with service providers that are either slow to update conversion rates or they just don’t have the technology to do so. If you are thinking of using a P2P platform, make sure they are using top-quality technology and you will be able to get the best rates possible.
3. Money Transfer Services
Money transfer services have also been around for quite a while and offer some big advantages over bank transfers for those who need to transfer small amounts frequently. One of the biggest benefits of using money transfer services is the fact that they are fast.
Not only are they quick to get your money across oceans, but since you don’t have to sign up for an account and neither does the receiver need an account, you can just walk and send your money. The receiver can go to a transfer service near them minutes after you have sent the money and receive the payment without any hassles. It is this convenience that makes these services very useful, and they also offer very competitive rates.
If you are trying to send money to a location that isn’t supported by any online payment portals, chances are your local money transfer service can get the job done for you. The leading money transferring services in the world have networks just as large, if not larger, than most banks.
Before you get ready to send money through a service whether that is a digital or a physical one, make sure that you verify the authenticity of that service provider and also conduct market research. Even a small difference in currency exchange rates can amount to a lot of money when you are working with a transfer company over the long term.
