Challenges when sending money to other countries

Written by Davies on send money / Reading time: 4 minutes.

Challenges when sending money to other countries

World economy globalization has many consequences; one of them, arguably one of the most noticeable ones, is mobility of both people and capitals. Some countries, like Spain, enjoy a reasonably prosperous context that welcomes workers coming from other nations, such as Colombia, Venezuela or Dominican Republic, where life tends to be harder. Migration is a culturally enrichening phenomenon which also provides dignity to people who, in their places of origin, possibly didn’t have access to some resources we currently enjoy in Europe.

As a consequence of this migration, precisely, people who come to more developed countries usually stock a certain amount of money that lets them afford not only to live in their new residence, but also to send some to their loved ones back home. This money sending, sometimes, is crucial to maintain domestic economies on the receiving end. That’s why it’s extremely important that transfers are performed in a proper way.

However, most used methods so far in order to complete these transfers have a series of drawbacks which may obscure the procedure. When sending money abroad, it’s very helpful to know beforehand what could go wrong, so that other means to prevent these problems and avoid disturbances can be searched. Would you like to know how to identify them? In the next paragraphs we’ll give you some useful tips.

Problems you should avoid when sending money

Whoever has dealt with usually available options nowadays may know perfectly these inconveniences when sending money abroad:

  • The long time they take. Either international bank transfers or deliveries through agencies can take up to several days, or even weeks in the worst cases. Of course, we’re talking about working days; bank holidays or weekends go without say. When sending money, one of the most valuable qualities is fastness, because normally money is required on its destination as soon as possible. That’s why you should look for options that allow instant deliveries. Keep in mind that usual methods currently do actually offer the possibility of having your remittances delivered in hours or minutes, but it’s considered a Premium service which carries their corresponding extra costs. It still isn’t the most sensible option.
  • Having to go in person. Although many banks and agencies offer now the chance of managing transfers through the Internet, sometimes, due to the amount of money or to special destinations, you’re forced to walk to the office or the bank branch in charge of the procedure. That means losing several hours of your life, possibly queuing for hours, and also the costs in which you may incur to reach their premises. If possible, you’d better choose completely digitalised systems which don’t involve at all any physical interaction.
  • High costs. Money transfer agencies are businesses, and as such, their aim is to get profit. In this kind of operations, you’re the source of that profit. In exchange of their service they’ll probably charge you fees and commissions which, at times, can be rather disproportionate, up to the point of making you unable to afford them. Ideally you should use a method where commissions are, if not minimal, as low as possible.
  • Too many intermediaries. Ultimately, all those previous problems are explained by this one. You, an individual, want to send money to someone, another individual who happens to be anywhere else in the planet. Traditional systems involve more people in between, other persons or institutions, who are in charge of carrying the money from a place to another and to fight against bureaucracy. Those people will need you to go in person to bring the remittances to them, will take some time to do the work and will earn some money for it. If you find a system that lets you transfer directly, all this mess will be saved.
  • Lack of safety. An international transfer is such a complex procedure with too many things that can go wrong. Too many steps, too many people involved, too much risk of someone interfering and making your money suddenly disappear and not arrive to its receiver. Scams are a danger that mustn’t be forgotten. More than advisable, it is imperative to use a means with a sufficient safety system.

Cryptocurrencies, the most efficient way to make international transfers

In the last year an option has come up that can help to avoid all these problems in money deliveries. We’re talking about cryptocurrencies, or virtual currencies, whose features are ideal for completing this kind of procedures. Basically, it’s all about money without a physical support, in digital format, which performs all its operations through the net. This obviously removes the need of making any deal in person.

Cryptocurrencies are based on blockchain technology, which ensures a total safety level. All operations done with them are stored in a block which is linked both to the next and the previous one, in such a way that it’s impossible to modify or erase it. That’s why the risk of being scammed is minimal.

Apart from that, the cryptocurrencies system is decentralised: it doesn’t depend on any external entity, which means money can be transferred directly among users without any external entity involved. Therefore, problems about both commissions or required time for money sending are both removed: in just a few seconds the receiver will get it.

Cryptocurrencies such as Davies are the means that will revolutionise the future of international money transfers. If you want to know better this and other features of the technology, keep following our blog, in which we’ll carry on informing you about its most significant details.