Top 5 Ways to Transfer Money Internationally

Over 181 million people transferred $65,761 million in international P2P transactions worldwide in 2019).

And that’s not counting millions in international business money transfers. The good thing is that today one can use a variety of solutions for these transactions. Each has its own pros and cons, so you need to choose the one that fits the situation best. For example, sending money to your friend overseas is easier with an e-wallet, but a business investment requires more help, like a specialized money transfer company.

5 Ways to Transfer Money Overseas That Fit Any Situation

1. PayPal (and other e-wallets)

PayPal is an e-wallet that makes international money transfers a matter of a few minutes and several clicks. It really is that easy, which is why this transfer method is best for small private transitions. As long as both parties have a PayPal account, the procedure is simple.

However, bear in mind that getting actual cash from this transfer might take up to a week. This depends on the bank the account is linked to. Despite this, PayPal is very convenient, as well as fast and secure. Most importantly, fees this service has are rather low, which makes it a great option when paying for small purchases online or transferring payments to freelancers.

On the other hand, PayPal has a bit of a reputation for freezing one’s account (all funds in it included) without warning. This occurs if even a hint of anything shady going on. In many cases, this is nothing but a false alarm. But resolving the matter and unfreezing your funds takes time and effort, which might cause a lot of problems for businesses.

PayPal is the most popular e-wallet worldwide, but there are other similar services you can use if they are available in your location, like Google Pay or Skrill.

2. Money Transfer Companies

Money transfer companies, also known as Foreign Exchange (FX) companies or brokers, are the ultimate international money transfer solution for business purposes. If you want to put your funds to use in, say, Hong Kong, this method will help you save a small fortune in currency exchange rates. It also allows for faster transactions, which might be a key factor when transferring money to HK for investing. And most importantly, FX companies are the cheapest option for big transactions since they provide you with the best exchange rates such as US Dollars (USD) to Philippine Peso (PHP). Therefore, they are the best for any international business purposes. They are also as secure as any bank transfer.

However, setting up an account with these companies can be a hassle. You will also need to move the funds from your primary bank account to your FX company’s account before making the transfer overseas.

Popular options of this kind are Transferwise and TorFX.

3. Money Transfer Operators

Money transfer operators are a good option for quick not very big transfers when e-wallets are unavailable. They are slower and more expensive, but overall secure and convenient. They are also available in the majority of countries and making a transfer is very easy as long as one has valid identification papers.

These transfer services are good for emergency situations as they are available both on and offline. You can get a same-day transfer to nearly every part of the world. The downside is that the fees are high.

The most popular among these operators are Western Union and MoneyGram.

4. Bank Wire Transfers

International bank wire transfers are secure and a relatively good option for businesses. For example, this will be an ideal option for transferring money to Hong Kong if you need a large sum to go directly from and to specific bank accounts.

Unfortunately, these transfers take a while and they are much more expensive than FX companies. You will also need to mind the currency and you are sure to lose a lot of money on exchange alone. Those rates are some of the least favorable in the industry.

5. Money Orders

Although they seem nearly archaic in the world of online transfers, money orders still exist. You can send this transfer directly through a bank or a post office. Some companies offer this kind of service, but they aren’t very reliable, so steer clear.

Money orders are good for situations when you need the transfer funds to be guaranteed. This procedure is 100% traceable and allows you to be secure in the knowledge that you’ll get your money back in case of any trouble.

On the other hand, money orders are very slow, rather expensive, and might only be available for limited sums.