7 Benefits of an Online Money Transfer
There are many benefits of an online money transfer. Just keep reading to find out the most convenient benefits of an online money transfer.
Nearly 30% of Singapore’s population is made up of mixed nationalities that are not Singaporean natives. This is not a unique case; UAE tops the list with more than 88% of its population being foreigners.
With the dispersion of people comes a need for money transfer services to enable remittance back home as well as domestically.
Online money transfer services have perfectly met this need.
What Is Online Money Transfer?
This is the sending of money instantaneously by transferring data that represents a cash amount. This involves no paperwork.
A cellphone number and email address for the sending and receiving parties are typically all that is required.
An online money transfer company then executes the transaction at a small fee from a secure web-based platform. When the transaction is completed successfully, you get a notification of the same from your service provider.
Advantages of This Mode of Money Transfer
You might be wondering why not go the check way or have a bank do the fund transfer for you. While these are still viable options, online transfers come with a host of benefits to both the sender and the receiver.
Keep reading to find out the top benefits of online money transfer services.
1. Speed and Efficiency
For a brick and mortar financial institution, you typically have to get to the institution and line up to get services. This is true for almost all transactions like sending money and getting access to loans.
Online banking has no wait times. As long as you have a stable internet connection, you can log into your account and perform all services available from your provider.
You can also access these services anywhere without the need for a commute. Unlike checks, which can take a week to be received and processed, an online money transfer is initiated instantaneously.
It then takes a day or two to complete the transaction.
This speed can help you make your payments much faster and save you from paying late fees and penalties for late bills.
Sending a check can be risky.
A lot of things can go wrong between your mailbox and the recipient’s mailbox. There is always a risk of it being stolen or simply getting lost in the mail.
If a check is stolen, this can open you up to a myriad of fraudulent activities, including identity theft.
It can also inconvenience your creditors and yourself, and convincing anyone that their check got lost in the mail is always a tall order.
Once a transaction is completed, you get a confirmation via email or text that also puts your mind at ease. If you do not get a notification, then you can take steps to mitigate the problem.
3. 24/7 Hour Service
Online money transfer providers are available to you 24/7. You do not have to go through the inconveniences of waiting for official banking hours.
For urgent matters, this ease of transaction is a major advantage that’s absent with brick and mortar establishments.
Some providers also have an on-phone customer service support round the clock. This resource is especially useful when you have poor internet access or other transactional issues that need human help.
Aside from being able to speak to a customer service agent, most providers have chat boxes where you can direct any service related queries.
4. Low Overheads Meaning Low Service Fees
There are many overheads associated with brick and mortar institutions. These include janitorial services, landscaping and property management, insurance fees, and so on.
Ultimately, these costs drive up the costs of doing business, which is then transferred to the consumer for the business to stay afloat.
Online banking providers do not have these costs. And the benefits are passed down to the consumer in the form of lower transaction costs.
If you decide to operate an online account, the interest fees on your deposits are likely to be higher than bank interest fees as well.
5. Larger Access
Some online money transfer companies have access to and networks in other countries. This makes the process for you more direct and much easier to execute.
Most providers also have currency conversation tools to help you make conversions when sending money abroad. This also allows you the flexibility to check the rates regularly and send money when the rates are favourable.
You only need to do a bit of research to find the best money transfer services in your locality.
6. Pay Bills Online
Another great advantage of online money transfers is bill payment.
Rather than having to fill in forms and mail checks, you can pay your bills at the click of a button. You can also automate your bill payments such that it requires no action from you whatsoever.
The added advantage to online bill payment is that you have one referral source for all your bills. This helps you track your payments and can help you work out a suitable budget as well.
Most online money transfer companies put a lot of resources into ensuring clients are able to navigate their sites.
You are therefore not likely to run into problems when using the website. This allows speed and gives you a great user experience.
Securing Your Transactions
When using online money transfer services, you must ensure to trust only a reputable company. Not every company can guarantee a secure platform.
Whomever you choose to work with, you must ensure to create strong passwords. Cracking a password is the easiest way to compromise an online account.
Passwords aside, you must avoid using public WIFI to make transactions. Also, be alert to random emails and forms requesting your password.
If you access your account via a mobile phone, use your provider’s app as opposed to accessing their site via a browser as this exposes you to a number of risks.
Perhaps what is most important when securing your transactions is to keep a close watch on your online activity. This increases your chances of spotting irregular activities and mitigating your risk.
Online money transfer takes a lot of stress out of sending and receiving money irrespective of the geographical distance.
The only thing left is to find the best service providers so you can enjoy the best rates in the market. At EnjoyCompare, we use our expertise to research such information so you do not have to.
Need more insights? Contact us today.