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Things to consider when transfering money abroad
Written by Davies on / Reading time: 4 minutes.
There are many options for exchanging and transfering money abroad, anywhere in the world, something that happens thanks to the development of new technologies. However, we often encounter numerous difficulties and doubts, such as: the commission that will be charged, the time the transfer will take to arrive, the cheapest way to send money online, the type of security it offers, etc.
Imagine for a moment that you are sending 2000 euros to a relative who is in India via TransferWise. If we make a quick transfer, we will be charged a commission of around 20 euros and the recipient will get 156,608.08 Indian rupees (INR), but the money will arrive in 48 hours or less. Plus, you'll save 45.90 euros more than if you did it with the bank. Even if you're sending money to a friend in England, it will come to him in a matter of seconds and you'll save 27 euros. It all depends on the country and the quantity. Now, imagine that the money is going to be sent to a Latin American country, like Mexico. The transfer would arrive tomorrow.
However, this is not the only option society has to send money abroad. Join us and discover other options.
Things to keep in mind when transfering money abroad to Latin America
It's not just the commission, it's not the arrival time. People should keep several factors in mind when it comes to sending money abroad, as well as comparing the different options to see which one is most profitable for us. We're used to making transfers through financial institutions, but have you ever wondered how much money you could save if you did so through other alternatives?
The case we mentioned in the introduction is just a small example. The time of arrival of the money to the recipient country also influences the quality of the operation, because if it takes too many days and the money is urgently needed, this solution is not the appropriate one.
4 ways to send money internationally
The reasons why sending money to other countries can be very diverse, from service payments to money for your family. In any case, these are (and have been) the most demanded solutions in Spain:
- Money order. It is one of the most traditional services in the history of payments and consists of sending money through post offices or specialized companies. However, this type of activity is becoming obsolete, as most people use other means, such as the bank. A few years ago, if you needed to send money nationally or internationally, many people chose the option to go to the nearest post office with their cash, fill out a form, pay a country-based fee and the office was responsible for sending the money to another office so that the recipient would receive the payment.
- Banking services. It is the most used technique in Spain, but many people still do not know the possibility of doing so without having a bank account. The bank transfer allows you to make small shipments, and you only have to go to a bank office and register to be able to start making them through it, or even at your own cashier. An example is Santander envíos. Bank transfer, however, can be done simply by accessing the internet to your bank's online banking service, choosing the source account, entering the data (IBAN, quantity, concept) and signing electronically. In recent years, we have also experienced the growth of Bizum, taking advantage of the proliferation of the smartphone.
- PayPal. This payment method is already known to many, due to its multiple advantages (buy on websites, send money via email, etc.). However, this is not a bank. You simply should have a PayPal account and link it to your bank account or the card you make payments with. Personal ones are always free, but the recipient must also have a PayPal account or a linked account.
- Cryptocurrencies. It's the most advanced technology at the moment to make instant payments at a low cost and anywhere in the world. The blockchain has resulted in a direct peer-to-peer (P2P) electronic money system, without intermediaries. However, such systems have a fundamental difference, which is that they not only consider the issuer and recipient of the money, but also those who process and validate it. In this case, the cost responsibility lies with the person who transacts, and its cost is much lower than what we might have with a bank.
What choice do you prefer? The great advantages of cryptocurrencies have placed the latter solution in one of the most secure and transparent of the moment. Payments are formalized at the same time as they are made, there are no intermediaries, taxes and fees are minimal and are distributed among miners. In short, it's a much faster and smoother system.
In addition, it is a much more decentralized and independent form of payment, so if you need to send money instantly abroad, you can ask us all your questions. We will be happy to tell you the possibilities.
Do you want to invest in cryptocurrencies? This process may seem more difficult than it actually is. Check it out for yourself!