Today, in our globalized world, it is more and more common to send money abroad and for many different reasons: as an expat you send money on a saving account back home, as a student your parents send you money each month or you might be retiring away from home and need to receive your pension.
There are basically 2 ways to send money abroad: the traditional way and the new one. Let’s see the differences.
How to send money abroad traditionally?
I’m using here the word traditionally in the sense of old fashioned and I am referring to banks or money transfer operators like Western Union or Moneygram. Why is that? Well, it is simple, these actors have been dominating the market for decades and nothing has changed in the way they send money for you. In 2016, it still costs a way too much to make an international transfer.
Take the banks for example: you need to send £1000 from the UK to France. You’ll be paying around 10% in fees, i.e. £100. There are fixed fees, variable ones and last but not least hidden ones. The hidden fees are traditionally hidden in the exchange rate. An easy way for bank to make even more money out of your transfer is to use a poorer exchange rate than the real one at the time of the transfer. Easy money isn’t it?
These fees are also applied by Western Union and Moneygram, which makes them the most expensive solutions to send money abroad. However, they are the most famous and probably the most used worldwide, which is a totally nonsense to me. This comes from the fact that they have agencies in many countries around the world.
How to send money abroad in 2016?
A couple of years ago, new actors arrived on the market such as Transferwise, World Remit, Azimo offering very competitive rates. How is that possible? They simply do not apply outrageous fees and they use opposite routes to send money. To make it short and simple: someone is sending money from Poland to the UK, they’ll be waiting for someone to send money the opposite way so they do not have to buy foreign currencies. Clever isn’t it?
This is the main reason why they manager to lower their costs. Such actors are called P2P: peer-to-peer.
The emergence of all these new actors made it complicated for people willing to send money abroad to compare them and to make sure they’ve found the best one according to their needs. This is the reason why Moneytis has been created. Moneytis is a comparison platform that allows you to compare all money transfer providers operating in 2 given countries. With 3 clicks you have access to a clear and transparent comparison that will help you find the best way to send money abroad. For each operator you’ll know exactly how long it will take for the transfer to be made, how much money you will receive and how easy their platform is to use.
I hope you learned how to send money abroad. It has never been so easy!