Most popular ways to send money abroad
The concept of money transfers is based on trust. The sender has to trust the money transfer service, while those in their affiliated network of agencies bond together based on this very precedent. The recipient, who is the end-user, will be able to benefit from the trust by getting the funds.
An ancient money transfer system
There is this ancient money transfer system that is known as Hawala. Arising out of the need to finance long-distance Silk Road trading for Arabs during the 8th century, Hawala also serves as an excellent way to protect against theft. The concept of Hawala is the same as that of international money transfers, as the payment system works similarly. Even the definition of Hawala applies to today’s remittance methods, as it means to transfer money without moving it.
The ancient system that is still used up to today, but is not legal in most countries, is based on the honor method. When a person hands over the money to a Hawala broker, it is transferred to another person who is in a faraway place. The money transfer is secured with a password. Then, the broker will call the agent in the area of the recipient. The recipient, who has been informed of the password by the sender, goes to that broker to get the money. The trust between the brokers is a vital element of the transaction, as the one who requested for it has to pay the broker who gave out the funds. There are no promissory notes issued, as the whole system is based on a promise to pay, which is a concept similar to that of having a credit line.
Send money abroad
Nowadays, there are several methods to send money abroad. Since international bank-to-bank transactions may take at least three to five working days, and there are additional delays if there are weekends and holidays, other faster options have emerged, even in this financial industry. Embracing digitalization has made it possible for fast money transfers by electronic methods, but these are usually for domestic transactions.
The most popular way to send funds abroad is through remittance centers, which are also more commonly known as instant money transfer services. Though the high cost of some remittance companies has made people choose other options, it is still the instant payment option that is preferred by many who cash out in their respective countries.
Suit the requirements
When you want to send money abroad, you need to find the option that suits the requirements. For large amounts, it is best to use international bank wire transfers. For smaller amounts, you can send money using e-wallets, instant remittance centers, and using other new money transfer systems.
Peace of mind
The best ways to send money internationally is to choose the most reliable payment methods for any given requirement. There are money transfer services companies that have an excellent reputation. Finding the right one will make the transaction a pleasant and less costly and provide you with peace of mind.