“Money often costs too much.”- Ralph Waldo Emerson
This quote transcends beyond money and swings into the realm of human relationships with wealth and the cost of acquiring it. Nonetheless, it is true that money does cost too much. It is especially true when you are sending money. Here, we discuss the hassle free ways of sending money without costing you too much.
So, Why Does It Cost So Much To Transfer Money?
There are several factors impacting the cost of sending money.
- Exchange rates: The value of one country’s currency compared to another currency. Fluctuating exchange rates can either add to the cost of sending money or work in your favor if you are sending money from the country with a higher exchange rate. For example, if you are an Indian in the UK and the value of INR against GBP falls, you will get more for every pound that you send. Subscribe to our exchange rate alerts to be notified when exchange rates reach your desired rate.
- Regulations: Governments around the world are strengthing the regulations around money to prevent money laundering and financing of ill activities such as terrorism. More regulations demand more resources for the money transfer service providers to stay compliant, increasing the cost of operations for the money transfer service providers. The money transfer service providers ultimately pass on the cost to the users resulting in an even higher cost of sending money. The other downside of strict regulation is limiting competition, so the big players are able to hike up a good margin. A case in point is how expensive it is to send money from Australia?
- Infrastructure: Today, financial inclusion is slowly becoming a reality with the advent of technology and the internet. However, it does not change the fact that lack of infrastructure is one of the main reasons why sending money is expensive. Till today, there is a huge unbanked population. To facilitate the population without bank accounts and the internet, money transfer service providers would need to set up networks and physical branch offices. The cost of which is eventually passed on to the users.
It does not have to be expensive. Here are the cheapest ways of sending money:
- Send money online: Sending money online is one of the safest, cheapest and fastest ways of sending money. There are several players in the online remittance space competing for the same pie. Obviously, that means users are able to avail of special promotions and attractive pricing. How do you send money online?
- Compare the top money transfer service providers on CompareRemit
- Pick the option that suits your needs
- Enter your details and the amount you would like to send
- Enter the beneficiary details and pic your method of payment
- Click send and your money is on its way!
How to send money instantly?
In the money transfer business, speed and cost are pegged against each other. In other words, faster the speed, higher the cost and vice-versa. The good news is that many money transfer service providers allow instant delivery. Here are our favorites:
- Cash Pickups: Cash pickups are still one of the fastest ways of receiving money. Pioneered by the incumbents, WesternUnion and MoneyGram, it is widely adopted throughout the industry. In fact, the new entrants like Xoom, Remitly, and WorldRemit have also made alliances with retail giants like Walmart in the United States and pawnshops like Cebuana Lhuillier in the Philippines to facilitate cash pickups for its users.
- Sending money online: Many online remittance service providers prioritize speed as their competitive advantage over their competitors in the crowded space. Companies like Ria can deliver your money within 15 minutes. The newcomers like Azimo and InstaReM also offer instant delivery services.
Remittance is on its track to become the single biggest source of finance helping the Member States of the United Nations to achieve Sustainable Development Goals on all three levels; family, community, and national. Sustainable Development Goals (SDG) are goals that the world must strive to achieve by 2030 with a mission to eradicate global poverty, reduce economic inequality and place the world on a more sustainable pathway.
SDG 10 proposes a reduction in the cost of sending money to less than 3% by 2030 and to eliminate remittance corridors with costs higher than 5%. By reducing the costs of sending money to 3% globally, families and households receiving remittances would save an average of USD $20 billion annually according to the United Nations. As the industry becomes more competitive, we are likely to see better offer which are faster, better, and cheaper.
At CompareRemit, we are always striving ways to make it convenient, economical and efficient to send money whenever and wherever you want to. Comparing the best available rates definitely makes transferring funds hassle-free.