Bank wire transfers have been the most common way of sending money through to overseas. If you are someone who sends money overseas frequently, then you know how inconvenient and time-consuming a bank wire transfer can be.
Bank transfers are usually a painful experience, with long waiting lines at the bank and complicated forms to fill it. Transfers can also be expensive and may even take up to several hours or days. The expenses of a bank wire transfer tend to accumulate overtime, Brian from Salary Singapore explains bank transfers as “chain of hands, with every hand that it touches it adds a cost”
To avoid the hassle of bank wire transfers, we have got a list of 6 modern alternatives to a bank wire transfers –
ACH payments stand for Automatic Clearing House; this is an extremely popular way to transfer money. This system is also the most like bank wire transfers. This system works by several thousand transactions being processed at once. An example of this may be an employer paying wages or bills. You may already be using ACH payments and not even realise it.
Electronic Fund Transfer (EFT)
EFT’s work by electronically transferring debit or credit payments to vendors. This is a simplified way to send through money overseas, without the need of a bank. It is even possible for one too may purchases in foreign countries through this transfer scheme. Advanced technology has made it convenient and secure to transfer funds from one’s debit or credit account to another vendor.
Person to person transfer (P2P)
FinTech experts’ predictions show that P2P transfers will most likely be the futures most prominent way to transfer funds. With already thousands of people across the globe using P2P to transfer. Apps like Shikhona are popular in Singapore which handle these fund transfers.
Bitcoin and Cryptocurrency
Another technologically advanced system to send funds from is using cryptocurrency. The most popular of all cryptocurrencies, Bitcoin is a great way to send your recipients funds. However, to send and receive you do need to have the ability to do so. Therefore, for the sender to exchange fiat money into bitcoin using a Bitcoin vendor and for the recipient to also be on a bitcoin vendor site. This method may be a little costly since it is still an uncommon way to transfer.
A Neobank is one that is based utterly online, due to which there are limits on services offered. This is also due to the lack of legislations and insurance support. However, they offer money transfer services with very low costs to the user.
Hope you enjoyed this Article! Do you use any of the options listed above? Let us know in the comments!