Back in the day, in order to make any kind of bank transactions you had to visit your local bank’s branch, stand in long queue and fill out lots of detailed paperwork. Fortunately, currently there are numerous methods to send money to someone else’s bank account. Most importantly, you can do this quickly, securely and without going outside your house. Nowadays, online and mobile banking is developed so well, that with a few clicks of a button you can send money to anyone in the world.
In this article we will take a look at popular transfer methods. Hopefully, one of them will suit your needs, as different people prefer different payment options. Moreover, with the well-developed remittance market, you don’t have to limit yourself only to banks’ offers. Some independent online companies may actually provide much better and cheaper services.
Option 1: From bank to bank
Banks are still the most common choice
The most obvious and popular choice is the regular bank transfer. You’ve probably heard about platforms like PayPal or maybe Venmo. Transfers there are in fact much cheaper and more convenient than at banks. However, the biggest disadvantage of these platforms is that you and your recipient need to register an account with them. Currently, almost everyone has a regular bank account of some kind. Yet, not everyone has an account on each of these online transfer platforms. Especially the older generation, who is not that technically advanced. Your grandma most likely won’t send you any pocket money through PayPal.
How to send money from one bank account to another?
You can handle it by visiting your bank’s branch, calling them or using online banking system. Currently, it is an industry standard for banks to have a well-developed online banking platform, so it may be the best place to order your transfer. Be careful with transfers ordered in person at a bank, as they are often more expensive, because of the additional processing costs. For example, ordering SEPA money transfer at Barclays (which is one of the major UK’s banks) costs 5GBP. Ordering the same transfer at the branch or by phone costs 15GBP. So you can see that the fees differ significantly.
Domestic and international payments
While in most cases sending money between banks within one country is usually free of charge, international transfers can quickly become quite expensive. It costs on average around 25GBP to send overseas payment. The transfers use SWIFT network and usually take a few days to be delivered. If you are in a hurry or are looking for cheaper international money transfers it may be worth reading about online platforms, which offer remittance services.
Option 2: From platform to bank
This method sounds like the best way to connect people, who prefer to handle their finances in two different ways. One person can simply order the transfer from a convenient online platform, while the recipient will receive the funds directly onto his regular oldschool bank account. How it’s possible and which platforms support such transfers?
How to send money from online platform to bank account?
First of all, you need to find a platform which supports such transfers. Currently, it has become a kind of a standard to offer online to bank transfers. Also in most cases you still need to pay for the transfer with your regular bank account. So how it works?
You make a regular domestic payment (which is free of charge) to the online platform, which then takes care of sending your money to foreign country. In many cases they cooperate with various financial institutions or even banks, therefore they can easily send the money directly to your recipient’s bank account. So, why would you want to use such intermediary and not simply send the money yourself via bank wire?
Why it’s cheaper to use them instead of banks?
Such remittance platforms offer international transfers significantly cheaper than banks. You can pay just a few dollars to move few hundred between borders. They also offer currency conversions, so you can exchange your money at good rates. Moreover, depending on the transfer method, your recipient can receive the money after only few minutes.
Some companies have established transaction networks between particular countries, which can speed up the transfer and lower the costs as well. Depending on where you want to send money, you can research companies which specialize and offer particularly cheap transfers on these destinations.
Option 3: From platform to platform
This is obviously the cheapest and fastest transfer method. However, as we’ve mentioned before, the biggest disadvantage is the need for opening accounts. Even though, the registration process is in most cases very quick and simple, not many people are keen on opening a special account just to receive a transfer from you. You can maybe persuade your friends and family to open an online account to send money to each other easily, but you can’t force your international clients or other companies to register somewhere.
PayPal, which we’ve mentioned earlier as an example, has become quite popular even among businesses. In most online stores you can use it as one of the payment methods. And if you have ever conducted any business online, various freelancers or even companies accept payments for the services via PayPal transfers. This shows that banks are no longer the only widely-available methods. However, they are still the obvious thing to have.
How to send money online between platforms?
Usually, it’s completely free to send money within a particular platform. Moreover, the money is then delivered literally the same moment. As it simply stays in the system, but just changes the owner. You can handle your finances on your smartphone with a convenient mobile app or through internet browser. With an access to the internet you can order an international payment anywhere you are.
As you can see, there are different ways and tools you can use to send money to someone. Some people prefer to keep their funds at banks, others handle their finances online. Thanks to some platforms, one can combine these two options and transfer the money much easier.