You might want to transfer money to a friend or family member to support them, cover their living costs, or just send a gift. In another case, you might need to send funds to a colleague to settle your share of your lunch or pay a company for a product you bought.
However, there are numerous methods you can use to send funds, and it’s easy to get confused while finding the right way to transfer money.
To help you with this, we have collected the best ways to send money in this article.
What Are the Best Ways to Send Money?
Below, you can find our hand-picked methods for transferring funds (both online and offline), each with its own pros and cons.
Bank Transfers
Bank transfers are among the easiest ways to send money to a friend or a family.
For a domestic wire, you need the recipient’s account number, name, address, and further details about their bank. After you have this information, you can initiate the transfer either personally via a branch or electronically using your financial institution’s internet banking platform.
While the fees vary by the nation you reside in and the service provider you utilize, local bank transfers are generally a cheap way to send funds.
On the flip side, bank transfers take longer to process than, for example, cryptocurrency or e-wallet transactions. While domestic wire usually takes 1–2 days to reach the recipient, international transfers can arrive anywhere between three to five days (or more).
Furthermore, as funds are transferred through multiple corresponding banks until reaching the receiving financial institution, international bank transfers often feature high costs for senders.
Also, both local and international bank transfers are limited by the operation of domestic payment networks. For that reason, banks only process wire transactions from Monday to Friday during business hours.
Cryptocurrencies
Contrary to financial institutions, cryptocurrencies use continuously operating blockchain networks to process payments every hour and even on weekends.
Also, since payments are processed on a peer-to-peer (P2P) basis, there are no intermediaries or third-parties involved in the payment process. As a result, cryptocurrency transactions are executed quickly (anywhere from a few seconds to an hour) while featuring low transfer costs.
Furthermore, cryptocurrencies offer a high level of security to users since their networks are maintained by thousands of computers instead of utilizing a central server to store all transaction data.
As they are managed by the community, cryptocurrencies allow anyone to participate if they adhere to the rules of the network. As a result, there are no location-based restrictions, while users don’t have to pay extra fees for cross-border transfers.
On the flip side, digital asset regulations vary by nation. While some countries outright banned cryptocurrencies, other governments consider crypto transactions legal as long as citizens follow the appropriate rules and laws.
Also, services that offer digital asset transfer services often require users to possess at least basic technical knowledge or experience.
E-Wallets
E-wallets are financial services that combine security with convenience and cost-efficient fees.
To use an e-wallet solution, customers have to deposit funds into their accounts via one of the payment methods the service offers.
For example, the digital wallet service STICPAY allows its customers to use credit and debit cards, bank transfers, and digital assets to add funds to their accounts.
After depositing funds, e-wallet users can utilize the service to send funds to other members or pay for products and services at merchants. Since these transactions are executed via the digital wallet solution’s internal network, they arrive instantly to the recipient’s account while featuring very low fees.
Furthermore, as the transfers are internal, e-wallets do not charge an extra for cross-border transactions, making the payment solution a viable alternative to international bank wire.
E-wallet services also provide multiple options for users to withdraw funds. In addition to bank transfers, digital wallet solutions also offer prepaid cards to their customers so they can spend their balances directly in a cost-efficient way.
In addition to featuring reasonable fees, fast transactions, and multiple payment methods, e-wallet services offer a high level of security to its users.
Money Transfer Services
Money transfer services come especially handy when sending funds to a recipient located in an abroad nation.
However, this method also provides a viable alternative for sending funds locally in countries where the domestic banking network is highly inefficient (e.g., financial institutions charge excessive fees or transfers usually take over three days to get processed).
As mentioned earlier, international bank wire transfers go through multiple correspondent financial institutions before reaching the recipient. For that reason, they feature increased costs and processing times.
To cut the costs and the time it takes to process international transactions, money transfer services utilize their own internal networks to deliver the funds from the sender to the recipient.
Such solutions function like a payment gateway that connects the sender and the recipient to transfer money between the two parties.
Money transfer services like Western Union and TransferWise require senders to use a payment method — which can range from cash, credit and debit cards to local and international wire — to initiate the transaction.
After the transfer gets processed, the service provider uses its global network to move the funds to the recipient (usually to their bank account or a dedicated agent for cash pickups).
Money transfer services feature fast (sometimes instant) processing times when using a card to deposit funds, however, if the transfer requires a currency conversion, service providers often use exchange rate markups or charge an extra to increase their profits.
Furthermore, while users can use store funds and manage their finances via e-wallet solutions, money transfer services only allow their customers to send and receive transactions without the option to keep money in their accounts.
Money Orders
One of the old-fashioned ways to transfer funds is via money order.
A money order is a paper document where the sender prepays the sum with cash or a debit card.
After filling out the form and paying the sum to be sent (as well as a small fee), the amount is printed on the money order’s face and delivered to the recipient.
Similarly to a check, the recipient can cash in the money order at a retailer, bank, or the national postal service.
Money orders are seen as a safe way to transfer funds since service providers offer protection against lost mails or failed deliveries. Also, as they are issued to the recipient’s name, the beneficiary doesn’t need a bank account to cash in a money order.
While money orders can be sent internationally, they usually take more time (from a few days to multiple weeks) to arrive at the recipient as the funds are delivered via the postal service.
Furthermore, it’s very hard to track a money order, and cashing in can come with additional fees and delays, especially when the recipient uses a different bank than the sender.
Why Should You Transfer Money With STICPAY?
E-wallets are among the best ways to transfer money. The payment solution keeps your funds secure and makes it convenient to handle your finances via a single platform.
And the award-winning payment solution STICPAY is an excellent choice to transfer money with an e-wallet service.
With availability in over 190 countries, STICPAY features a global e-wallet service where customers can transfer money and get paid like a local.
Besides supporting 29 national currencies and 19 languages, STICPAY has partnered with financial institutions across Asia to allow its clients to deposit and withdraw funds via the inexpensive and fast local bank wire service.
Domestic transfers are currently supported in Indonesia, Malaysia, China, South Korea, Japan, the Philippines, and Singapore, with coverage for additional nations to be added soon.
Besides local bank wire, STICPAY offers the following payment methods to its customers:
- International bank transfers
- Visa
- MasterCard
- UnionPay China
- Cryptocurrency (Bitcoin, Litecoin, Ethereum)
To save money, STICPAY users can apply for the prepaid STIC Card, allowing customers to spend or withdraw their funds rapidly and conveniently.
Transferring funds to other members feature a competitive 1% fee (maximum $35 per transaction). Since they take place in STICPAY’s internal network, client-to-client transfers arrive instantly to the recipient’s account.
To add a level of convenience, STICPAY features its native — and recently redesigned — mobile apps for iOS and Android in addition to the e-wallet solution’s web-based platform.
While convenience is important, STICPAY takes the safety of its users seriously. For that reason, the e-wallet service offers advanced anti-fraud and security features — such as storing client funds in segregated accounts with uninterrupted access — to its customers.
As an additional layer of security, STICPAY actively monitors both merchants and consumers while using strict KYC and AML checks to prevent fraud.
Send Money With STICPAY
STICPAY is an excellent choice to transfer money in a secure, cost-efficient, and convenient way.
To get started, customers have to create an account with the service, which only requires a few minutes of their time.
After filling out the form with the details, STICPAY users have to confirm their identity and residence by submitting the necessary documents.
Upon successful verification, customers can use the e-wallet solution right away to send funds to their friends, family or to utilize the services of STICPAY’s merchant partners.
Ready to transfer money with STICPAY?
Have questions? Contact STICPAY’s rockstar customer support team to get your queries answered 24 hours a day!
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Originally published at https://www.sticpay.com on December 4, 2020.
