Fintech Money Transfer Companies

Best Fintech Money Transfer Companies

Using Fintech money transfer companies to send money over the world is usually always the most cost-effective option. These businesses frequently charge lower transfer fees than banks while maintaining the same degree of security and dependability.

For international money transfers, different money transfer firms charge varying costs, which are determined by the current market rate as well as extenuating factors such as where you are moving money from and to, as well as the amount you are sending. Our tool compares these characteristics, as well as overall security, reliability, and accessibility, to assist you in making an informed decision on the best way to send money.

How does a money transfer work?

Leading fintech money transfer companies are focusing on optimizing digital navigation to produce a more straightforward user experience for all customers. The following are the steps to start a money transfer:

Step 1: Choose a money transfer provider

Step 2: Create your free account

Step 3: Set up your transfer

Step 4: Double-check fees and confirm

Step 5: Track your transfer

What key features should be included?

While getting the cheapest price for your money transfer is critical, it’s also a good idea to think about a few other factors while searching for a dependable and secure money transfer service.

Finally, the cost of your overseas transfer will be determined by the amount of money you’re transferring, the current exchange rate, and the provider’s costs.

When it comes to finding the finest money transfer service for you, there are a few things to keep in mind:

Security

Make sure the fintech money transfer company you’re considering is registered with the right financial authorities in the nation where it operates and uses secure encryption technologies to protect your funds.

Reading user reviews is also a good way to learn about a company’s reputation. This is a fantastic approach to double-check if their services are up to the promised standard.

Cost

Some money transfer companies, such as Wise, will offer money transfers at a fixed mid-market rate plus a service fee. Other businesses, on the other hand, will add a tiny markup to the mid-market exchange rate.

To give you an indication of what to expect, most banks charge a mark-up of 4–5 percent, while most money transfer services charge exchange rate margins of roughly 1%. The crucial thing to remember is that all providers will charge fees or markups in return for their services; what matters is that those fees are transparent before you complete your transfer.

Speed

You would expect that because so much money is housed online, all international money transfers will be as quick as sending an email, but this is rarely the case. It’s a good idea to double-check each provider’s predicted transfer time, keeping in mind that transfer delays are affected by the day you send your money: Weekend and business days have different delivery times.

Accessibility/Availability

Check to see if the money transfer service you’re considering has the ability to send money via the route you require. Not every organization now provides services to all areas or nations, thus this is a critical element to consider before selecting a service provider.

Related: Best International Money Transfer Apps for iOS and Android

Why is it important to compare money transfer services?

Money transfer services are not all the same, and each one varies depending on the needs of the consumer. Some are better for sending modest amounts of money, while others are better for sending huge amounts of money. The cost and speed of a transfer, as well as the payment and withdrawal options available, can all vary significantly.

The ideal solution for your individual needs will differ depending on where you are sending the money, what currency you are sending, the quantity you are sending, and how you are funding the transaction. To help you find the best deal, we’ve compiled a detailed list of our top fintech money transfer companies, along with a concise description of their benefits and drawbacks.

Fintech Money Transfer Companies

Best Fintech Money Transfer Companies

1. Wise

For good reason, Wise is one of the most well-known names in the industry. They’re a money transfer company that specializes in bank-to-bank international transfers, however, their service is far less expensive than banks’, with a big focus on no hidden fees.

One of Wise’s strongest selling features is how open they are about their fee structure and currency rates right from the start: Wise confirms the precise amount that will reach the recipient account before the transfer is performed.

To use Wise, you must first create an account by giving personal information such as your address, phone number, email address, date of birth, bank account or credit card information, recipient information, and the recipient’s IBAN number (IBAN). You’ll be able to see the costs and expected transfer time for each payment option once you’ve entered the payment details, including the amount and currency. After that, you can make a transfer.

Wise’s finest feature is that it offers mid-market rates with no exchange rate mark-ups, and these rates are guaranteed for 24 to 48 hours. They do, however, charge fees for transfers, which vary depending on how quickly you need the money, how much you’re sending, and which currencies you’re using. These are usually expressed as a percentage of the amount being transferred, and are normally in the range of 0.5 percent.

The transfer of your money from Wise to the recipient’s account normally takes 3-5 days.

2. WorldRemit

WorldRemit offers money transfers in over 90 currencies to over 150 countries, with over two million people using their services last year.

They provide a variety of foreign money transfer options, including bank deposits, cash pickups, and mobile money. Most transactions are processed in minutes, with low fees and an upfront exchange rate.

Signing up and using WorldRemit’s services is simple and quick. To verify your identity, simply enter your personal information and give valid proof of address. You can just scan the documents and upload them. After your account has been approved, you can send funds via bank transfer, debit card, or cash pickup.

Both a transfer fee and a markup on the mid-market exchange rate are charged by WorldRemit. You’ll also have to keep an eye out for any hidden fees from your bank. WorldRemit, on the other hand, is up forward about the costs it charges, so you’ll know precisely how much your transfer will cost before it’s completed.

Depending on the currency, country, and delivery option, you may have to pay a delivery fee of $3.99 to $24.99. While there is a markup on WorldRemit’s exchange rates, it is still less than what banks give. Normally, the provider does not charge more than a 1%-1.5 percent mark-up.

In most circumstances, especially when transferring cash, WorldRemit provides near-instant fund transfers. Bank transfers, on the other hand, may take 1-3 days to credit the beneficiary’s account.

3. XE

XE offers international money transfers to over 170 countries, with Canada, the United States, and New Zealand among the most popular destinations. The company is known for using enterprise-grade security to secure the safety of its money transfer service. XE is also known for its low-interest rates.

You must first create an account by entering personal information such as your name, address, social security number, and occupation. You can set up the transfer using your chosen payment details, the amount to be transferred, the currency you want to send, and the recipient’s data once the account has been approved.

However, you should be aware that XE only accepts payments made through internet banking and over the phone. Customers cannot pay with a credit card or arrange a cash pick-up service from XE.

XE does not charge a fee for transfers, instead of adding a slight markup to the mid-market exchange rate. As the monetary value of the transfer rises, this margin will shrink. When you’re ready to transact, you’ll find out the confirmed exchange rate. Typically, this gap is between 0.5 and 2 percent.

The majority of money transactions can be completed on the same day. The type of currency being transferred and the banks involved decide whether the funds reach your receiver sooner or later. This can take anywhere from one to four business days.

Fintech Money Transfer Companies

4. OFX

OFX has been offering money transfer services for over 20 years and has handled over £67 billion in transactions with an average Trustpilot score of 4.4.

With offices in London, San Francisco, Auckland, Hong Kong, Toronto, and Sydney, as well as bank accounts in over 155 countries and over 55 currencies, the company has a large disbursement network. OFX also offers 24-hour customer support, cheap fees, and no exchange rate markups.

To begin using OFX, you must register online and prove your identity by giving documentation such as a driver’s license, passport, or utility bill, as with most other services. Once you’ve logged in, you can make a transaction over the phone or through their website.

You can fund your account using any of the available methods in your country. Residents of Australia, the United States, the United Kingdom, and Canada can use electronic bank transfers. Residents of the United States and Canada can also use wire transfers. Only UK citizens are eligible for debit card transfers. Another thing to keep in mind is that the minimum transfer amount is $1,000, so OFX isn’t the best option for sending smaller amounts.

OFX does not impose a set fee for transfers, and the amount of exchange rate markup applied to each transaction is determined by the amount being moved and the currencies involved. The higher the transfer size, the better the rates, although expect exchange rate margins of roughly 1.5 percent above the mid-market rate in general.

Transfers with OFX usually take between 1 and 5 days to complete.

RELATED: TOP 10 FINTECH COMPANIES IN THE UK

5. Payoneer

Payoneer offers worldwide money transfer services in 150 currencies to 200 countries. Its marketing is aimed mostly at businesses and freelancers, and it offers an easy-to-use platform for sending money internationally.

Payoneer has a prestigious clientele, including Airbnb, Upwork, Google, and Amazon, who use the service for large payments. Payoneer is utilized by eCommerce markets like Walmart and freelance marketplaces like Fiverr, as well as individuals who want to send money internationally.

When you create a personal or professional account on the Payoneer website, you must enter your personal information and supply identification paperwork such as a passport or driver’s license. After that, Payoneer will conduct identity and credit checks, which could take up to two days. You can start sending and receiving payments with Payoneer using a range of payment options, including bank transfer and debit card, once this information has been verified.

You can send another user a payment request to receive funds using Payoneer, and Payoneer will provide them with the required details, including the payment alternatives available to them. Within a few days, the funds will be deposited into your Payoneer account. Payoneer allows you to receive payment in local currencies via specialized receiving accounts if you need to receive payment from enterprises and marketplaces via bank transfer. The funds are subsequently transferred from these receiving accounts to your Payoneer account. 

There are no costs for sending money from one Payoneer account to another. You can send money straight from your Payoneer account to other people’s bank accounts without them having to be Payoneer customers, although this will incur fees.

The majority of Payoneer money transfers are nearly instantaneous. Transactions with non-Payoneer accounts, on the other hand, take longer depending on the payment method. It may take up to 2-3 days to withdraw money from your Payoneer account to your bank account.

Payoneer’s fee structure is complicated because different types of payments have distinct fee and currency rate structures:

Fees

• As a Payoneer customer, you can send and receive funds for free using the ‘Make a Payment’ option.

• To pay your service providers through credit card, you will be charged a 3% fee. Payments through local bank transfer and eCheck cost 1%.

• There is no price to receive money via their Global Payment Service for EUR, GBP, JPY, AUD, CAD, or MXN, however, there is a 1% fee for USD.

• If you want to use their billing service to receive payment, you’ll have to pay a 1% fee for eCheck payments and a 3% cost for credit card payments.

Exchange rates

  •  Payoneer charges 0.5 percent more than the mid-market rate for currency exchange.
  •  You’ll have to spend 2% more than the mid-market rate to transfer money from Payoneer to your bank account in a foreign currency. Furthermore, if you make a withdrawal in the same currency, you will be charged $1.50.
  • It’s worth noting that Payoneer charges lower costs for high-value transactions, so you can save money by sending multiple amounts at once.

6. Remitly

With over 140,000 agent locations worldwide, Remitly facilitates transfers from 17 countries to over 50 receiving countries.

Remitly is one of the most well-known names in the sector, with a reputation for competitive fees and a well-designed mobile app. It accepts a variety of payment methods, including bank transfers, cash pickup, and even home delivery.

Once you’ve created an account, you may send money around the world using a variety of methods, including bank account, debit card, and credit card, all of which can be selected when setting up a transfer on the Remitly website.

The costs and exchange rates charged by Remitly are decided by how you pay for your transfer, the amount you’re transferring, and the currencies you’re sending. While Remitly transfers are frequently more expensive than other providers, the variety of ways you can send money offsets this.

The amount of markup above the mid-market rate will be determined by the currencies and amounts being sent. Remitly often charges a rate that is 1% to 2% higher than the mid-market rate.

Both express and economy transfers are available through Remitly. Express transfers need you to pay an additional cost for the transfer to be with the receiver within minutes after you pay with a debit/credit card. Economy transfers do not incur an additional price, although they often take between one and three days to arrive.

The cost of sending money with Remitly is determined by the amount of money you’re sending, the destination, and the payment option you choose. There is a 3% cost for credit card transactions, but no fee for debit card transactions. There are a variety of payment options to explore as well:

  • Express payments: Credit or debit cards are used to make payments. Varying locations have different charge structures, but on average, this costs around $6.99 and your transfer arrives in minutes.
  • Payments are made by bank transfer in order to save money. Again, different destinations have different fee structures, but these transactions typically take a few days and have no fees if the value is over $500.

Remember that when transferring money, your bank may incur additional costs, so double-check with them before proceeding.

7. MoneyGram

One of the most well-known brands in the industry rounds off our top ten. MoneyGram is a payment transfer service that was founded in 1940 and has a network of over 350,000 agent locations. They have over 80 years of experience offering global money transfer services.

Clients of MoneyGram may feel certain that they will receive a secure and dependable service from one of the world’s largest money transfer firms. Although the company’s rates are greater than some of the newer suppliers on the market, MoneyGram allows you to send money online or in-person at one of the company’s agent sites, which are commonly found at local Post Offices in the United Kingdom. Additionally, if you have a Facebook account, you can send money through Facebook’s platform using the unique ‘MoneyGram Sendbot.’

MoneyGram’s transfer fees are determined by the payment type, destination, currency, and payout method selected. If you want to spend $1,000 to India, for example, you’ll pay no fees for bank transfers, $3.99 for debit/credit cards, and $7 for cash deposit at your chosen location.

While MoneyGram charges modest costs, they have a considerably greater exchange rate margin than many other providers, often as high as 4% or 5%. So, if you’re seeking the most cost-effective way to transmit money between currency zones, you might want to think about other options.

8. Skrill

Skrill is a popular payment method among online gaming consumers and FX traders. Skrill has a global clientele of over 120,000 online merchants and promotes itself as a provider of rapid transfers with the opportunity to conduct business utilizing cryptocurrency as well as traditional money transfers.

Skrill offers both personal and business accounts, which you can sign up for on their website or by installing the Skrill app to your Android or iOS device. Following the submission of your personal information, you will be prompted to create a security pin and choose a payment method: bank transfer, bitcoin, debit/credit card, or e-wallets such as Neteller, Klarna, Trustly, and Klarna are all accepted.

Skrill’s payment choices are straightforward to navigate both online and on their app, as well as conducting transactions to and from a wide selection of payment and withdrawal methods after your account is set up. 

Skrill’s fee and currency rate structure is extremely complicated, and the amounts you pay can vary significantly depending on the payment method you choose. Any currency conversion will cost 3.99 percent more than the mid-market rate, which is higher than many other providers, although this is partially offset by the fact that overseas transfers are free.

Pay attention to the administration fees, since you may be required to pay more in certain circumstances, such as a €25 price for reversing transfers or a €5 inactivity fee if you do not make any transfers in a 12-month period.

Skrill usually takes 2-3 business days to transfer funds to the recipient account. If you wish to withdraw your funds to your bank account, this can be executed instantly.

RELATED: TOP 10 FINTECH COMPANIES IN THE USA

Fintech Money Transfer Companies

9. Ria Money Transfer

Ria Money Transfer has been in operation for over 30 years and can send money to over 149 countries from the United States, Australia, the United Kingdom, and Spain. It has a good reputation for offering trustworthy remittance services to individuals all around the world, and it allows you to send money through its huge network of 397,000 cash transfer and payout agent locations, as well as online.

Ria Money Transfer is a reputable company with positive internet ratings and years of expertise in the field, allowing them to give high-quality services to its clients.

The transfer price you’ll pay with Ria Money Transfer is determined by a number of criteria, including the destination, payment method, and how funds will be sent to the receiver (cash pickup or bank). Payments can be made via bank transfer, credit/debit card, or cash.

You can use the online calculator to figure out how much you’ll have to pay in fees. If you are transferring money from the United States to Canada and make a transfer from your bank account to the recipient’s bank account, you will be charged a $3 transfer fee.

Exchange rates are decided by the country to which you’re sending money and the currencies you’re utilizing. Ria Money Transfer’s exchange rate margins are typically between 0.5 and 2.5 percent.

The majority of money transfers made through Ria Money Transfer are instant, especially if cash pickup is selected as a delivery option. Bank transfers, on the other hand, might take anywhere from 2 to 5 days.

10. Xoom

In over 70 countries, Xoom allows you to send money to an overseas bank account, send cash for pick-up, or have cash delivered to your doorstep. You may also use the service to make phone top-ups in 35 countries, which is one of the reasons they have such a good reputation in the money transfer market.

It’s a terrific option if you need speedy money transfers, but it’s worth noting that the faster transfer times come at a greater price.

Their online platform is simple to use, and you’ll be prompted to choose from a drop-down selection of payment options and delivery ways.

The fees you’ll pay when sending money through Xoom are determined by a variety of criteria, including the payment method you employ, the destination of your funds, and the quantity being transferred. If you pay with a US bank account, the charge is usually lower.

Fees are generally high when paying with a debit/credit card (about $11 when sending $200), however they are waived in rare cases, such as when transferring a bigger amount using your bank account.

In addition to these fees, when transferring into a different currency, Xoom charges an exchange rate margin, which is typically between 2% and 4%. This is relatively high in comparison to other providers, and when paired with the fees imposed, Xoom becomes quite costly within the industry.

The majority of Xoom transfers are instant, although some currencies and regions may take a few days.

Why are fees charged by money transfer companies?

Money transfer providers must make a profit in order to stay in business, and those profits are found in the fees or markups they charge for each money transfer they organize. This is why you’ll rarely (if ever) discover a money transfer service that offers the precise mid-market exchange rate (the rate at which banks trade among themselves) on any given day with no additional fees. Most providers (such as WorldRemit, Remitly, and XE) will either mark up the exchange rate to cover their costs or add a predetermined fee to the mid-market rate when computing your money transfer (such as Wise).

This is why we constantly advise you to be skeptical of companies who promote ‘no fees’ or ‘zero commission,’ as this almost usually means there are hidden fees that you aren’t aware of.

Are there any other options for sending money internationally?

Using a money transfer provider, such as the ones featured in this review, is nearly always the cheapest option to send money worldwide.

Another option is to transfer funds straight through your bank. For some, this is a more convenient option because you don’t have to open and verify a new account and may instead arrange for money to be wired directly from your bank account to the receiver.

However, keep in mind that this convenience comes at a price. In comparison to the average 1 percent markup charged by money transfer providers, banks typically add a 4–5% markup to the exchange rate.

Choosing the best fintech money transfer company for you…

All of the companies on this list provide their customers with a number of services that make international money transfers easier and more cost-effective. However, it’s crucial to keep in mind that the greatest service for one transfer may not be the best for another.

Leave a Comment

Your email address will not be published.