Whether you're sending money to a family member in a different country, paying for an international purchase, or even just splitting expenses with some friends, there's no denying how essential money transfer services have become in recent years.
Given that we use money transfer companies to make payments almost daily, it's best that you have an understanding of how these companies actually work and which ones are the best.
So, throughout this article, we'll be taking a look at the best international money transfer services, how to use them, and the general pros and cons of this kind of service.
Let's get started by providing a simple definition of bank transfers and when you might use one.
| Provider | Score | Details |
|---|---|---|
| 1. XE | ★★★★★ | Learn more |
| 2. Wise | ★★★★★ | Learn more |
| 3. Western Union | ★★★★★ | Learn more |
| 4. MoneyGram | ★★★★★ | Learn more |
| 5. Currencies Direct | ★★★★★ | Learn more |
| 6. Atlantic Money | ★★★★ | Learn more |
| 7. Remitly | ★★★★ | Learn more |
| 8. TransferGo | ★★★ | Learn more |
| 9. Moneycorp | ★★★ | Learn more |
What Is the Best Money Transfer Service? — Reviews
Let's get into the best money transfer services that are currently available, both for domestic and international transfers.
Aside from providing an overview of these platforms, we'll also be getting into perhaps the most important feature that distinguishes them from one another — the fees and how fast it takes for the transaction to be processed.
1. Xe Money Transfer
Xe Money Transfer is one of the most reliable options out there when it comes to international payments specifically, given that they let you send money to over 200 different countries — more or less every country in the world!
Xe was formerly known as HiFX, and as far as simplicity goes, they provide one of the most straightforward approaches to international money transfers out of all their competitors. Fortunately, they provide a business account as well as a personal account, so any business owners out there will gain access to quite a few different business solutions.
Still, regardless of what type of account you want to register on their platform, you'll be able to see exchange rate information in real time, so you're always able to make an informed decision no matter where you're transferring money to.
Let's take a closer look at their platform while also outlining some of their fees and the average amount of time it takes to actually transfer funds:
Fees
As for the fees, Xe money transfers are generally pretty competitive with their exchange rates and fee structure, offering a fixed rate for every transfer that varies depending on the region you're in.
Starting with the UK, the fee is £2, and it's also $3 in the United States and Canada. Moving on to Australia and New Zealand, you'll end up paying a $4 fee on your transactions, and, lastly, it's €2 for any small transfer you make in any country that’s in the Eurozone.
Aside from this, it's worth noting that there are actually no fees whatsoever for any business customers using Xe transferring over $500,000 in foreign currencies. Now, although there's a fixed rate anyway, it's still worth cutting costs at every corner, so anyone making larger transactions can benefit a lot from Xe's platform.
Transfer Time
As you'll find with the majority of money transfer platforms out there, the time it takes for your funds to actually be processed with Xe Money Transfer largely varies depending on where the recipient is located — as well as the transfer method you've chosen.
On average, though, according to their website, it generally takes around one day for your transfer to be completed, sometimes taking just a couple of minutes.
Still, they also mention that you should allow up to three business days for your funds to reach the recipient's account, so it's worth being wary of this if you ever need to make a particularly urgent international transaction.
2. Wise
Next on our list, we have Wise, which you might recognise under its former name, TransferWise. In terms of a cost-effective approach, Wise is one of the strongest options on our list, so let's explore the rest of their platform and outline some of their fees and transfer times, too.
Platform Overview
Like Xe, Wise offers an incredibly intuitive and user-friendly platform for you to transfer money on, whether you're opting for the mobile app or directly through their web instead.
Furthermore, regardless of whether you're a business owner or just want to use their platform for personal transfer, they have a multi-currency account feature to save on currency exchange rates.
In essence, this allows you to hold and manage funds in various currencies, so it's an especially useful tool for anyone who's making international transactions rather than focusing on domestic ones.
Fees
Wise prides itself on its transparent fee structure. They typically charge a fee starting from 0.41% of the transfer amount, which can be significantly lower than what traditional banks or other money transfer services charge. This makes Wise an attractive option for cost-conscious individuals and businesses.
Transfer Time
Wise has pretty fast transfer processing times, all in all, typically taking less than 24 hours (and two working days at longest), according to their website.
Also, they make note of the fact that you can convert money between balances instantly when you're using a Wise account. So, all things considered, Wise are an extremely efficient way of transferring money, whether it's internationally or here in the United Kingdom.
3. Western Union
You've most likely heard of Western Union before at some point as it's possibly the largest money transfer service there is in the world — operating in over 200 different countries/territories with around 550,000 different branches.
You'll have the option of making both international and domestic transfers with Western Union, but you'd mainly only using their service for international purposes as you may as well just bank transfer someone the money if it's staying in the UK.
Western Union have slightly different transfer limits depending on the country you're sending the money to, but their main strength is definitely their overall network and reach — whether you're looking to send cash in person or schedule a delivery option.
While you'll have access to a 24/7 live chat and phone support system, their website doesn't really make it any easier to compare exchange rates, so keep in mind you'll probably have to get in touch with a member of their support team directly if you want a specific question answered.
Cost
Like a few of the options we've already explored earlier in the article, most of these money transfer services don't have the most clear fee structures since they tend to vary a lot — Western Union is generally no different in this regard.
The first money transfer you'll make with Western Union will actually not have any sort of transfer fees attached, but for subsequent transfers that are up to around £800, you can generally expect to pay a bit less than £4 for every transfer you make.
Even then, though, this isn't exactly a set in stone figure since the exact fee you'll pay varies entirely on things like the funding source and which delivery method you've used (we'll come onto this in a bit more detail shortly).
Aside from this, the actual country you're sending the money to can have a pretty big influence on the overall fee, too, as you'll notice Western Union charging you way more than other times you use the service depending on the destination country.
Speed
Fortunately, speed is absolutely one of Western Union's top priorities — which you'd generally expect given the size of this company.
You can actually deliver your money on the same day you've sent it if you have sent the money to one of their cash pickup locations and used either cash (if you transferred the money from one of their physical branches) or a credit or debit card — just keep in mind that you're almost always going to need to pay an extra fee if you're in a rush for the cash to be sent off, though this is a fairly common practice for most money transfer services.
Having said that, the cheapest money transfers they have to offer might take over a week to be delivered, so it's up to you to decide how fast you want the money sent over — it's nice they give you the flexibility to decide, though.
4. MoneyGram
MoneyGram aren't quite as large as Western Union are, but when they're operating in over 200 locations with 350,000 different physical branches, you're not exactly going to find it hard to find agent locations and kiosks to send money from — that is, however, if you choose to send your money in person; you can do it online, too, if you'd prefer this method.
You'll be limited to around £8,000 for every online transfer you make per month, but this is subject to change depending on which country you’re actually sending the money to as it can jump as high as £20,000 in some countries.
Following on from that earlier point, you've got plenty of physical locations you can send money from, too, so if you don't have a bank account, you shouldn't have any problems paying in cash instead and having the recipient pick up the funds instead. If you do, however, wish to pay via your bank account or debit card, you'll also be able to do this via their web platform.
They may not have exactly the same physical presence as Western Union, but they're definitely a lot more clear about their particular fees for money transfers and exchange rates if you go onto their website.
If you need any further support for things like fraud claims or just general bank queries, you can get in touch with them via the phone, live chat, or even just by sending them a quick email — even their mobile app is pretty decent.
Cost
If you're making a transfer via your bank account, you generally don't need to pay very much in the upfront fees, but keep in mind that there some of the fees you'll need to pay for other payment methods like cash, for instance, tend to be a lot higher.
Similar to how Western Union operates, though, MoneyGram’s specific rate markups will always change depending on where you send the money from, surpassing over 3% in some regions — you'll be able to find specific figures directly from their website, though.
Speed
Regardless of whichever payment method you've opted for, you can pretty much always have the funds delivered within the same day that you sent them off — just keep in mind that it might be slightly longer depending on a few additional factors like the banking hours of the specific branch you're delivering to, for example.
5. Currencies Direct
Next on our list we have Currencies Direct, which, again, is probably one of the biggest currency brokers you've got available to you.
Oe of the options on this list with the most longevity, too, since it was founded almost 30 years ago when the internet was really just starting to take off and people realised they didn't always need to visit their local bank and deal with their fees if they wanted to make an international money transfer.
It generally tells you a lot about these services if they've been able to consistently remain as one of the best international money transfer services for this long, as it's not even as if their quality as diminished over the years and have been replaced with a new service like Revolut.
They're genuinely still one of the most convenient services to deal with; whether it's down to the dedicated account manager you'll be given or just their general all-round smooth service.
To be fair, though, there are better options on this list if you only need to transfer several hundred pounds at a time — Currencies Direct are an excellent option, but their specialties are definitely in facilitating high value transfers at a time (we're talking upwards of £20,000) since their rates for lower figures have a lot more fees attached.
You're probably better off with a previous option we've already discussed, such as Wise, if you don't need to send that much money.
As far as things like safety are concerned, you're in safe hands here as they adhere fully to all the different regulations set by the Financial Conduct Authority (FCA) here in the United Kingdom — so you can rest assured knowing your funds are fully safeguarded when using their service (20k is a lot of money to lose, so this is definitely a positive worth mentioning).
Pros
Fantastic customer service team: If you have any kinds of issues with your Currencies Direct account, you've got multiple different avenues you can choose to get in touch with one of their helpful staff members to solve your problem.
Over 20 offices globally: Although this isn't the highest figure out of some of the other options we'll be walking through today, it makes sense when you consider their platform is primarily online based.
Great Trustpilot Scores: If you're interested in hearing what customers have to say, you'll be more than impressed by their 4.9/5 score on Trustpilot as this demonstrates that there's generally very little to complain about with this service.
Cons
Certain currency pairs are slower to send: This is generally something you can expect to see with all international money transfer companies, but it's worth mentioning that the speed your funds get sent across is usually dependent on the destination country.
Not the most competitive option for relatively small transfers: As mentioned earlier, you get the most out of Currencies Direct when you're transferring five-figure sums sums at a time, so it's worth checking out one of the other services we've covered if you need to transfer far less than this.
6. Atlantic Money Review
Atlantic Money is a UK-based money transfer service that makes it easy and affordable to send money internationally. Since its launch in 2020, Atlantic Money has focused on users who want low fees for international bank transfers. They charge a flat fee of £3 for transfers up to £1,000,000, with no hidden costs or markup on exchange rates. To use their service, customers can either utilize their web platform or download their mobile app, which is available for both iOS and Android. They allow transfers between the UK and many European countries, including France, Spain, and Germany. In February 2024, they also were approved to add the US, Canada, and Australia. In addition, Atlantic Money supports both personal as well as business transfers.
Typically, transfers are completed within one business day, although faster delivery is available in some cases for an additional 0.1% fee. The app features a user-friendly interface that enables users to send money directly from their bank accounts with live exchange rates, ensuring they get the best deal possible.
However, it's important to note that their service is currently limited to the UK, Europe, US, Canada, and Australia. Furthermore, you can only send GBP or Euros. Additionally, a very significant restriction is that you can only have one transfer pending at any time. Also, the app-only format may not appeal to those who prefer using a desktop.
For anyone looking for a straightforward, transparent, and cost-effective way to send money abroad, as long as their country coverage and restriction of one pending transfer at a time meets your needs, Atlantic Money presents a strong option with its competitive fees, quick service, and favorable exchange rates.
How to Use Atlantic Money
To use Atlantic Money, either use their web platform or download their app from the Apple App Store or Google Play Store. After signing up and verifying your identity, you can input the amount of money you wish to send and select your recipient's details. You'll receive a real-time quote showing the exchange rate and applicable fees before confirming the transfer. Transfers can be made via local bank accounts, and the app provides delivery time estimates based on the currency and destination. Once the payment is made, the transfer will be processed, and you can track its status through the app.
Fees
Atlantic Money charges a flat £3 fee for transfers up to £1,000,000. This fee is consistent regardless of the transfer amount, making it a highly competitive option for those sending large sums. For some currencies, there may be an additional 0.1% fee for expedited delivery. The service uses live exchange rates with no markup, ensuring transparency. However, be aware that transfers made over the weekend or during holidays may involve an additional fee for using the last known exchange rate.
Pros of Atlantic Money
✔️ Low Fees: Atlantic Money's £3 flat fee per transaction is highly competitive for international transfers.
✔️ Transparent Fees: No hidden charges. Users know exactly what they'll pay before completing a transfer.
✔️ Live Exchange Rates: The platform offers the real-time, mid-market exchange rate with no markup.
✔️ Fast Transfers: Most transfers are completed within one business day, and express delivery options are available for a small fee.
✔️ Easy-to-Use App: The app is straightforward and user-friendly, available on both iOS and Android devices.
✔️ Web Platform: Customers are no longer limited to their mobile app and can make transfers directly from their website.
Cons of Atlantic Money
❌️ Limited Countries: Transfers are only available between the UK, Europe, US, Canada, and Australia.
❌️ Only one pending transfer at any time: This can be a serious restriction for many people, so make sure this won't be a problem for you.
❌️ No FX Tools: Atlantic Money does not offer additional features like exchange rate alerts or other currency conversion tools.
7. Remitly
With the previous option, Currencies Direct, we were talking about how although it's a quality money transfer service for larger transfers, it gets pretty expensive if you're transferring lower than five figures at a time.
Remitly doesn't have these kinds of issues at all. In fact, it's quite possibly one of the cheapest and fastest options we're going to be covering today, regardless of how much money you're actually looking to send with them.
It is, however, worth mentioning quickly that their specific fees when it comes to exchange rates aren't exactly the most transparent, but as seen earlier with options like Western Union, it's generally pretty commonplace for these kinds of services to be a bit less clear about this for whatever reason — so we can't be too mad at Remitly for following suit.
In terms of their strengths, though, other than just being able to send funds with incredibly low fees, it's also super flexible in terms terms of all the different delivery options you can choose from (unlike, say, Currencies Direct, where they were far better suited to online bank deposits rather than cash) — this includes delivery directly to the recipients home, direct bank deposits, or even cash pickups from one of their branches.
As for their speed, you've got the flexibility here to decide how fast you want the money transferred, too, since they offer both economy and express transfer options. If you need the funds sent as promptly as possible, you can choose the express options, but as expected, this comes with much higher fees than the economy options since you're essentially paying for a more premium service.
Either way, though, it's good to be able to make this decision directly as the customer rather than being forced to wait around for long delivery times.
The platform itself is also made with beginners in mind as the user interface is genuinely one of the most straightforward and clear ones we've come across — this extends to their mobile app, too, where you'll be able to track all your transactions in real-time to know whether the recipient has received the funds yet.
Lastly, Remitly is also regulated by the FCA and employs some of the most effective encryption in the industry, so you don't ever need to worry about your funds being intercepted or question the security of the platform you're sending large sums of money on.
Pros
Global reach: Again, options like MoneyGram and Western Union generally lead the way when it comes to the range of different countries you can send funds to given that they've got the biggest networks out of all the major money transfer services, but Remitly still allows you to make transfer to 90+ different countries.
Quality customer support team: Remitly are not only available across a bunch of different communication lines (over the phone, email, live chat) but they'll also get back to you incredibly quickly if you have an issue that needs solving.
Cons
Limited availability: Although you've got a huge range of countries you can send money to, you can actually only make money transfers from major countries — the United Kingdom, the United States, and Canada, for instance.
Bank accounts are usually a requirement: Certain options we've covered don't require any sort of bank account to send your funds, but you will unfortunately need one with Remitly — not to mention that there's also a fairly extensive process you're required to go through to verify your identity.
8. TransferGo
Unlike some of the other options we've covered like Western Union which have seemingly been around forever, TransferGo is actually one of the more new international money transfer companies on our list since it was only founded in 2012.
Still, it's probably a testament to the service itself that they've managed to gain so much popularity in such a relatively short amount of time, but they generally have their quick transfers and low fees to thank for that.
Completing transfers in generally no more than one or two business days and with exchange rates that are far lower than a lot of the other services out there.
Having said that, there are still a few downsides to using this platform in particular, but it's more to do with the lack of different currency combinations rather than them being a new service.
You should be good with the majority of currency pairs out there, but there are definitely more extensive options on this list alone if you want to send funds to a less developed country.
Furthermore, quality customer service is usually a given with these sorts of platforms, so it's kind of disappointing how slow TransferGo can be in this regard as there is generally not a lot of time to waste if you've got an issue with a transfer and need some assistance.
All in all, although TransferGo definitely has its flaws, it's still one of the cheapest and fastest options out there if you're looking for an international money transfer service — we'd recommend Western Union or MoneyGram if you need to make transfers to a non-major country, though.
Pros
Speed: We weren't being hyperbolic when we were talking about TransferGo having some of the fastest money transfer times in the industry — their standard transfers alone are sent within just a day (which is faster than a lot of these companies' express options), and their fast transfers can be completed in half an hour.
Cons
Slightly limited availability: TransferGo isn't the most useful service if you're outside of Europe as this is where they're primarily based.
Transfer limits: You can only send a maximum of £10k per transfer if you're using a credit card, so if you need to send much larger sums than this, we recommend using a service such as Currencies Direct.
9. Moneycorp
Anyone living in the United Kingdom might've already heard of Moneycorp as it's possibly one of the largest currency brokers in the country — one of the older ones, too, as it was formed over 45 years ago back in 1979.
Ultimately, there's a lot to like about Moneycorp — namely how straightforward the overall process is for actually transferring money (the speed isn't fantastic but is decent, too, as it normally takes around one or two business days for a transaction be completed) — but the platform itself is definitely not the most user-friendly option we have on this list as the UI is a bit all over the place.
The same goes for Moneycorp's exchange rates — there's nothing really so bad that it's worth complaining about, but it's certainly not the most affordable international money transfer service that we've covered throughout this list.
One thing that we do like about Moneycorp that you don't always see with these sorts of services is the personal account manager it comes with, so if you're needing a bit of extra assistance or generally just don't quite know what you're doing, you'll definitely get a lot of utility out of this.
Still, some of the downsides of this platform outweigh the positives, because while it's nice to have a dedicated account manager, the benefits of this sort of thing are often eclipsed by other fees — the exchange rates are alright, but the transfer fees when using Moneycorp are generally pretty high if you're only interested in sending small amounts of cash at a time.
Furthermore, you'll only have access to a fairly limited range of currency pairs, and for a currency service as big as Moneycorp, this is pretty poor on their behalf — not to mention that they don't exactly have the fastest customer service teams if you need help with an issue.
With all that said, though, Moneycorp still has a place on this list because it's a quality service if you need to transfer much larger sums of money since the fees aren't so bad when you consider the exchange rates — just keep in mind that there are way better options out there if you only want to send small sums of money at a time, or even if you want to send money to a wider range of countries.
Pros
Accessibility: You should be able to use Moneycorp’s platform literally whenever you want to as it's available online 24/7.
No transfer limits: You won't be capped on the amount of money you can send in one go, so that makes it perfect for people looking to send much higher sums of money since they won't have to use multiple different services — you can also choose whether you want to opt for same-day transfers, too, but keep in mind that this naturally comes at a much higher cost.
Flexibility: Moneycorp supports multiple different payment methods for you to send funds -whether it's via debit card, bank transfers, or even just using your Moneycorp account balance — it's fairly easy to set up phone transfers, too.
Cons
Limited availability: Certain countries, particularly in South-eastern Asia, aren't supported by Moneycorp, so you won't be able to send money to the likes of Vietnam or South Korea, for instance.
Takes a while to get started: Moneycorp doesn't exactly streamline the overall setup process as you need to verify both your phone and identity which can be pretty time-consuming.
Cryptocurrency
Although this is a slightly more left-field option in comparison to the money transfer companies we've just covered, in recent years, cryptocurrencies have become an excellent alternative method for sending large sums.
Whether it's their speed, potential to reach anyone across the world, or just the underlying technology that makes cryptocurrency exciting, there's a lot to explore here.
So, let's wrap things up for this section by taking a look at a few different cryptocurrencies and covering how they can be used to make international money transfers.
Like the other two options, cryptocurrencies aren't without their expenses, either, so we'll also be taking at some of their associated fees and ultimately whether they're a better option than the other money transfer services we covered like Xe and Wise.
Cryptocurrency Overview
Whether it's Bitcoin, Ethereum, Ripple, or the countless other cryptocurrencies that are available, at large, this is a decentralised, borderless way of transferring funds across the world.
For anyone looking to send large sums of money, cryptocurrency can be especially advantageous given the speed at which transactions can be processed — all without needing a bank as an intermediary.
Fees
Generally speaking, it's hard to give a specific figure when talking about some of the transfer fees associated with a cryptocurrency transaction, given how widely they can vary. Ultimately, though, it's based on which cryptocurrency you're sending and how congested the network currently is.
Stellar (XLM), for instance, is one of the most widely used cryptocurrency assets due to how affordable it is regarding transfer fees. In fact, the coin was actually made with the specific aim of transferring funds cheaply — costing only a mere 0.00001 XLM, the equivalent of £0.000010, for every transaction you make.
Naturally, this makes it incredibly popular for sending funds in comparison to the other money transfer platforms we covered earlier.
Having said that, though, you've naturally got to consider that while these crypto assets are significantly cheaper to transfer than GBP or USD, they're obviously nowhere near as stable. As such, you'd be risking your money fluctuating, up or down, by holding significant amounts of money in these coins.
So, if you do make large transactions using coins like XLM, for example, you'd want to convert it into GBP as quickly as possible to avoid the issues that come with volatility.
Ease of Use and Speed
Now, aside from how affordable cryptocurrencies are in terms of their transaction fees, one of the best parts about them is how much faster they can be for international money transfers compared to traditional methods — especially for larger sums.
Because the technology is decentralised and miners all over the world are verifying transactions instead, cryptocurrency transfers are processed 24/7, meaning funds can be transferred within a matter of minutes, depending on network confirmations.
Still, while the benefits of using crypto are obvious for anyone who's tech-savvy, you've got to consider how familiar the recipient is with cryptocurrency and whether or not they have access to cryptocurrency exchanges or wallets so they can convert the digital assets into their local currency.
You'd always want to make money transferring an easy process for whoever's on the receiving end, so you'd probably be asking a lot of them to get familiar with how crypto transactions work if you were set on making this your primary transfer method.
Lastly on the topic of cryptocurrency, it might also help to consult with a financial advisor or general cryptocurrency expert so you can ensure you're navigating the, though innovative, complicated crypto landscape properly.
Ultimately, though, the choice between some of the more traditional money transfer services — Xe and Wise, for instance — and cryptocurrencies depends on what your individual preferences are. But, generally speaking, it might be best to save this option for business partners or individuals who understand how the cryptocurrency space operates.
What Are Money Transfers?
At its core, a money transfer is as simple as it sounds — moving funds from one person or entity to another, although it's typically through electronic means.
Now, what separates this service from simply handing someone a load of cash is that you can transfer money to literally anywhere in the world, whether that's in the same country or across international borders.
Naturally, the ability to bridge geographical distances with the click of a button is going to come with a range of different use cases, so let's dive into some of these in the following section.
Diverse Use Cases
Money transfers are indispensable in a surprisingly large amount of situations, some of the most common ones being:
Remittances
Anyone who's ever moved away from their home country knows the importance of being able to send money overseas in order to support their family members.
In the past, you'd generally have to rely on wire transfers or another international money transfer service to get this done, but it goes without saying that these are highly inefficient when you need the funds to be transferred quickly.
These kinds of remittances are often going to play a major role in improving the quality of life for recipients — especially if the recipient comes from a low-income background — so being able to send the money swiftly is generally the priority here.
Personal Payments
Whether you're splitting the bill at a restaurant, sending money to a friend to buy you those concert tickets, or even just contributing to a group gift for someone else, we can't always be in front of each other to simply hand over some cash.
So, generally speaking, money transfers simplify some of the more personal financial transactions we'll make on a daily business.
Business Transactions
Aside from remittances or other personal payments, though, the ability to make international money transfers is massively important in the business world, too. Regardless of the size of your business, you'd be missing out on some serious business opportunities if you decided you were going to stick to good old cash.
Of course, the scale of these missed opportunities might change depending on how large your business is — you're not exactly going to be making many money transfers if you're running a corner shop that mainly just sells to the local neighbourhood — but for most reasonably sized businesses, gone are the days where you'd be dealing entirely in cash.
Even if you were running a relatively small business, you can use money transfer services for domestic financial transactions, too; they don't strictly need to be international. Whether it's paying suppliers, your staff, or even just receiving payments from customers, businesses of all sizes can benefit from international money transfer companies.
Online Shopping
Online shopping is obviously more of a luxury compared to other use cases we've covered already, but given how eCommerce has made it possible to shop from retailers all over the world, you'd need some sort of money transfer service to facilitate this.
So, whether you're sending money here in England or you need to make cross-border payments, money transfer services let you do so efficiently in a secure environment — even giving you the ability to make payments in various different currencies.
Emergency Assistance
Still, aside from some of the more frivolous luxuries, like online shopping, that we've grown accustomed to in the modern world, perhaps one of the most important use cases of money transfer services is the role they play during times of crisis or emergencies.
The ability to quickly be able to send money across the world can't be understated in its significance; it's a major lifeline.
Whether you have a family that desperately needs the money (like we mentioned earlier with remittances), or you're taking a more altruistic approach and wish to donate to some charities following a natural disaster, for instance, money transfer services allow for quick financial aid to be sent to individuals or regions in need.
Ultimately, though, as touched on earlier, the overall landscape of money transfers has evolved significantly over the years. While traditionally, people would need to rely on banks and wire transfer services for any cross-border transactions they made, these were often characterised by high money transfer fees — not to mention how long it would take to process them.
And in times of need where time is often of the essence, you can't always afford to sit around and wait for the transfer to be processed; you need it to be sent now.
Fortunately, however, with the advent of technology, the financial industry has witnessed a major paradigm shift. Still, how exactly do you use one of these services?
How Do Money Transfer Services Work?
Now that we've got some of the main use cases of one of these services out of the way let's break down how they actually work before exploring some of the pros and cons:
Digital Wallets and Accounts
First things first, more or less every money transfer company, the reputable ones at least, requires their users to create a digital wallet or account before they're able to send any money.
Put simply, these are essentially a virtual repository to safely store your funds — think of them as a kind of digital piggy bank, holding your money until you decide to send it somewhere else.
In general, not everyone is comfortable with storing your money in an online account (cryptocurrency enthusiasts, for instance), but these accounts are encrypted and highly secure, so you typically don't have anything to worry about.
From here, you'll be able to access your funds either through their website or a mobile app, so it's actually a pretty convenient way of managing your finances.
Fund Source
Before you're actually able to initiate a transfer, though, you'll naturally need to fund your digital wallet or account.
Generally speaking, this is normally pretty easy to do, and these companies allow for it to be done through various methods so their users have flexibility and convenience.
The most common way of funding your digital wallet is usually just by linking your bank account so you can make direct transfers, but you can also use a credit or debit card if you prefer. What's more is that certain money transfer companies even let you deposit cash at designated physical locations, so you do actually have quite a few methods at your disposal here.
Though this is slightly less common, some platforms might even offer the option to load funds via other digital wallets or even with cryptocurrencies. Ultimately, the choice is yours here, so just choose whichever method you're most comfortable with.
Recipient Information
Great! Now that you've actually got some money in your account, you're finally able to send and receive money from people, regardless of the reason. To do this, though, you'll first need to have the recipient's information, whether that's their name, bank account details, phone number, or email address.
To get specific, some services, like CashApp, for instance, give their users the option to send money directly to the recipient's mobile wallet or even a physical pick-up location.
The best money transfer services always want to provide their customers with as much flexibility as possible when it comes to sending money, even if the recipients do not even have traditional bank accounts.
Currency Exchange
As you'll know, if you've ever needed to make an international payment, currency conversion tends to play a pretty pivotal role.
Fortunately, though, money transfer services often offer exchange rates that are usually better and more competitive than what traditional banks offer, so you're actually getting quite a good deal here in comparison to going to a bank or a wire transfer.
Still, depending on which money transfer service you choose, they might still charge a transfer fee or margin on the exchange rate, so it's not entirely without its pitfalls.
We'll come onto which money transfer services have the best exchange rates later on in the article, but as a general rule of thumb, it's essential to have an understanding of all of these rates and fees before getting involved with the platform so you can ensure you're always getting the best value for your transfer.
In some of the more volatile currency markets, price fluctuations can be all over the place, so some services might even offer tools to lock in the exchange rates in advance, which is naturally incredibly handy.
Transfer Processing
So, once you've entered all of the necessary information for the recipient and confirmed the transaction, the platform will then process the money transfer, not dissimilar to the process involved with wire transfers (minus the lengthy waiting times).
There are a few things that happen during this stage, whether that's verifying that you, the sender, have sufficient funds in your account, conducting checks to ensure all the relevant anti-money laundering regulations are being adhered to, or even just implementing security protocols so that you and the recipient are both protected.
This last stage is particularly important if you and the recipient aren't friends/know each other and need some sort of middleman to ensure you can both trust one another.
Delivery Time
Generally speaking, it's hard to give a straight answer when discussing the amount of time it takes for the money to reach the recipient, as it can vary fairly widely.
While some transfers can actually be completed within a couple of minutes, others might need to take a couple of business days, depending on a few different factors. Ultimately, though, these services are almost always faster than the alternative option of wire transferring, as this normally takes up to five business days.
Still, the country (and currency) where the money is being sent to, the transfer method you've chosen (bank transfer, cash pick-up, or mobile wallet, for example), and even the service's internal processing times all influence the delivery time, so there's not really a one size fits all option.
As mentioned, these transfers have the potential to be processed in a matter of minutes, but it's important not to rest your hat on this quote, especially when you need to make international transfers that are pretty time-sensitive.
Confirmation and Notifications
So, once you've finally sent the money, you'll tend to get real-time notifications from whichever money transfer platform you've chosen so that you stay informed about the status of your transaction — whether it's confirmation that the money has been sent or when it's actually been received by the recipient.
Not every money transfer service has these notifications on by default, so you may need to dig around in the settings to turn this on first. Either way, though, you'll be able to track the progress of your transfer every step of the way so you can have some peace of mind that it's been delivered properly.
Security Features
As touched on earlier, security measures are normally a pretty integral part of money transfer platforms — not just to protect your financial information and prevent fraud but also because they're required to employ these measures by law.
In practice, this typically comes in the form of encryption so that your data is secured during transmission. Aside from this, though, two-factor authentication is normally added to your account login details so that you can ensure only you will ever have access to your account at any given time.
And lastly, the best money transfer platforms normally have fairly robust fraud detection systems so that any suspicious activities can be promptly identified and blocked.
It's not exactly essential to have a firm understanding of how these security measures actually work in order to use these platforms, but having a general idea of what you should be looking for in terms of security can definitely help you choose a trustworthy platform for any transfers you need to make.
Customer Support
Finally, one of the aspects of a money transfer service that's slightly overlooked is the level of customer support that's offered. Whether you encounter technical issues, have questions about your transfer, or generally just need assistance with using the platform, there's always a fairly responsive customer support network that can make your experience smoother.
Furthermore, since all of the platforms that we'll be covering in the review section of this article will be international money transfer services, you should generally be able to access their support networks around the clock.
Ultimately, though, just make sure you're looking for services that can offer multiple different support channels, such as email, phone, and live chat. And, just to be sure, check their hours of operation so that you can guarantee they'll be available at any time should you need them.
Now, let's take a look at some of the wider pros and cons of using these kinds of services to send money abroad or domestically.
Pros and Cons of Money Transfer Services
Depending on your circumstances and the specific needs you might have, money transfer services tend to have a range of different benefits and drawbacks.
While we've talked quite highly about money transfer platforms up until this point, it's only fair that we delve into a few of the pitfalls you might expect when using one of these platforms, too.
So, to remain impartial, let's take a look at both the advantages and disadvantages of using these services:
Pros
✔️ Speed and Convenience
Generally speaking, one of the biggest advantages that money transfer services have over other transferring methods, like wire transfers, is the speed and convenience they come with.
In the past, before mobile banking, you'd actually have to visit a financial institution or bank, Western Union, for instance, in order to send money — even then, it could take up to five business days to fully process. Now, however, you can simply open up your mobile device or computer and send money all around the world, at times in just a few minutes, with several clicks or taps.
Obviously, this is particularly advantageous whenever you find yourself needing to send money urgently, as you're not bogged down by the same lengthy process as other transferring options.
✔️ Accessibility
Aside from just how fast you can send the money, though, another major benefit of these services is that they're usually highly accessible, most of them being available 24/7 through websites and mobile apps.
Going back to the previous example of wire transferring at a physical location, you'd naturally need a member of staff present to facilitate the transfer for you, whereas now you obviously don't need to have another person present if you're using a mobile app.
So, this added level of accessibility ultimately means you're able to initiate transfers from any location at any time, making them far more suitable for anyone who has a fairly busy schedule or just lives in different time zones.
✔️ Cost-Effective Options
As touched on earlier, compared to some of the more traditional banking methods or wire transfers, most of these services tend to provide far better exchange rates and lower fees, so you're able to save more money in the long run.
Of course, when you're sending money to someone, you're already going to be a few pennies lighter, so you'd never want to add to the amount of funds you're losing by unnecessarily giving the money transfer company you're using even more money.
✔️ Global Reach
Lastly, most, if not all, money transfer services have pretty extensive global networks and are connected to over a hundred different countries. As such, you shouldn't ever have any major problems sending money to a non-western country or region.
Any business owners out there that either currently or are looking to extend their global reach would benefit massively from using one of these types of services, as there's not really a more efficient way (both in terms of price and speed) of conducting international transactions with other businesses or individuals.
Just make sure you're aware of any potential fees that come along with money transfers that are made outside of the United Kingdom!
Cons
❌️ Fees and Exchange Rates
We mentioned in one of the pros earlier on that money transfer services are far more cost-effective than other banking methods, and while this is certainly true, it's worth mentioning that they're still not entirely fee-free.
Whether it's the amount of money you're transferring, the destination of the recipient, or just how fast the transfer will take to process, certain platforms are going to charge fees based on a few different factors, so it's worth understanding what each service's individual fee structures are.
In addition, you might always be receiving the most favourable exchange rates out there when you use one of these services, which, of course, can impact the overall cost of your transfer.
Still, don't panic because we'll be highlighting some of the best money transfer companies later on in this article and will explore what their various fees and exchange rates are so you're able to choose the most cost-efficient option for your needs.
❌️ Security Concerns
We're highlighting this point because although the vast majority of UK-based money transfer services are regulated by the government and employ stringent security measures, there is always a possible risk of fraud or data breaches.
Albeit, it's not an incredibly high risk based on the aforementioned security measures — encryption, and the like — but it's still essential for you to choose a trusted service and take all the extra precautions you can.
Whether you're enabling two-factor authentication, transferring money on a secure and private network, or generally just using strong passwords, it's paramount that you're doing all you can to protect your financial information.
❌️ Transfer Limits
Though a similar kind of transfer limit is imposed on regular bank and wire transfers, you might find that certain money transfer services have a cap on the amount of money you're able to send to someone else, whether it's a business or an individual, within a day.
For businesses, this can be slightly problematic, as there are often times when you might need to make fairly large transactions — more than simply sending your friend your half of the money for the taxi you two took last night, for instance.
So, if, in the end, you realise that you actually need to send a fairly substantial amount of money, you unfortunately might encounter a few limitations that force you to use other methods instead.
Fortunately, though, there are a few alternative, slightly unconventional (in terms of mainstream popularity) methods that can be used to send large sums of money around the world, so we'll be exploring some of those later on in the article.
❌️ Regulatory Compliance
And lastly, one of the biggest complications of making international transactions with money transfer services is that the platform itself needs to comply with various regulatory requirements in different countries — not just the UK.
So, if the service that you end up using is somehow unable to verify your identity, or there are restrictions on certain types of transactions, you might find yourself experiencing some delays or other complications.
Final Thoughts
To wrap things up, it's clear how far we've come since the early days of money transfer services, where you'd need to visit a physical location and wait days for the money to process — not to mention how you'd have no indication of how far along the processing timeline you were.
Nowadays, we can send money all over the world with the click of just a few buttons, whether that's via cryptocurrency platforms or other online money-transferring services.
Still, just as they were in the days before the internet, there are still plenty of fees attached to this process — from exchange rate fees to general transfer fees imposed by the platform you're using.
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