You may need to transfer money abroad for many reasons: to support your family, to help a loved one on a trip, to book a vacation rental, etc.
It used to take a long time and be expensive through the usual channels. It’s always frustrating to have saved money, only to have part of it cut down by transfer fees.
But that was before. I’m going to show you how technological innovations allow us to reduce our costs and save money. I’ll take the example of money transfers, but the same principle applies in many other areas.
Today, the Internet offers us the chance to cut costs, thanks to startups that have set themselves the task of competing with the historical players in money transfers by cutting costs.
And reducing your expenses is surely what you are looking to do if you are on this blog.
Here is a comparison of the different ways to transfer money today.
Cheaper money transfer with Fintech players
Fintech, what’s that? It’s a contraction of “Finance” and “Technology”, so it’s companies that aim to improve financial services through technology.
Several startups have developed with the aim of facilitating money transfers.
This is the case of Paytop, for example, or Azimo.
I’ll tell you about Azimo because he’s the one I know best.
Azimo offers its services on its website as well as via a smartphone application.
It’s very convenient.
But on top of that, the first transfer is free. And the following ones are starting from 1 GBP, depending on the destination.
Unbeatable. Not to mention that there’s cashback to be won on Igraal! Right now: 8 GBP to be won for the first money transfer.
And that finally, the site announces a delay of only a few hours for each money transfer (1 hour for some destinations).
Of course, don’t forget to read consumer reviews on well-known sites such as Trustpilot. They are very good for Azimo (otherwise I wouldn’t have told you about them).
In short, this is a concrete case of improving a financial service thanks to new technologies.
The historical actors of money transfer
If you’re a bit scared of startups, you can always turn to historical and well-known actors, such as Western Union.
On the plus side: you can transfer money even without an Internet connection or mobile phone via one of the 500,000 Western Union outlets worldwide. You can also, of course, transfer money via the Western Union website.
To send 500 GBP to Senegal, it will cost you 15.90 GBP. For 1000 GBP, it will be 24.90 GBP.
This is much more expensive than Azimo who will charge you 0 GBP for the first transfer.
Transferring money abroad via your bank
Your bank may also send money to a third party abroad on your behalf. This will be done in the form of an international transfer.
However, the person to whom you send money must have a bank account in the country concerned. This is not always the case, for example for tourists or students on an internship.
It also takes much longer: 3 to 5 days.
Each bank charges different rates for money transfers. You will therefore need to ask your advisor for more information.
A safe way to send money, therefore, but not very practical.
Sending money abroad with a postal order
Money can be sent abroad by postal order from any post office. Very convenient, then!
The recipient will be able to collect the money by showing his or her identity card at any post office in his or her country.
The maximum amount is 3500 GBP.
But the delays are very long: from 4 to 10 days depending on the destination.
The cost of a postal order ranges from 5.80 GBP to around 50 GBP, depending on the country of destination and the terms of the transfer.
And only 52 countries are covered by this method of transfer. Compared with Azimo, the startup presented above, which has 195 countries, the postal order is not suitable for everyone.
As is often the case, I am delighted that new players are coming on board to shake things up by improving service for customers and reducing costs.
Let’s thank the Internet for once again offering us this very advantageous development for our finances. And let’s not forget that every company should seek to make life easier for its customers, which I believe is the key to success. Look at Amazon, my darling, which is constantly offering new services to its customers, and whose customer service is very efficient. Its success didn’t just fall from the sky .