Making International Money Transfer Easier

• (Photo : Making International Money Transfer Easier)

According to the Pew Research Centre at a total of USD 625 billion was sent in remittances across the world in 2017. This figure represented a 7% increase from the amount reported in 2016.

Though data is not readily available on how this money was sent across, past trends have shown that banks and money transfer service providers are the major players. The rest of the channels such as mobile money transfer companies, foreign exchange bureaus and informal channels account for very little in percentage terms.

International Money Transfer Challenges

There is a general consensus that international money transfer services have significantly improved over time. However, there still are bottlenecks in the processes that make remittances services inefficient and costly. Let us look at some of these challenges.

Transfer Fees -Money transfer providers and banks still grapple with transfer fees. Some charge flat fees, others scale their fees depending on the amount transacted or charge differently based on the remittance corridor and nature of the currency pair.

Exchange Rates- Depending on the currency pair being exchanged and whether one or both are standard or exotic currencies, providers give varying rates. This makes some remittance corridors more expensive to transfer funds than others.

Network Coverage- Both sending and disbursing network coverages greatly influence the geographical reach money transfer providers have. Many of them are yet to establish strong remittance partnerships for enhanced geographical coverage.

Speed of Transfer-Transferring money within the same region such as the EU or EEA can be quite fast for most providers. However, when it comes to sending money across countries in different regions such as Africa and Australasia, it takes longer than desirable.

Ease of Set-Up- Signing up for an account, verification of details, paying for your transfer and sending to the beneficiary, can be a long and winding process. At times this puts off customers who end up using informal means to send money home.

How Online Money Transfer Companies Make Transfers Easier

Online money transfer services have been viewed as the disruptors in the remittance market. Most of them have successfully overcome the legacy hurdles remitters have been experiencing over time. This is how they do it.

Affordable Transfers

Several factors are used to determine how much fees providers such as Ria Money Transfer will charge you. Four of the top factors include:

• The amount you are transferring

• How you pay for your transfer

• The remittance corridor

• The payout method

The more money you send the less the dollar cost of the transfer. For instance, if you transfer $500 from the United States to Australia, pay for it using a bank transfer and choose cash pickup as the payout method, the transfer will cost you only $5 in fees. Banks charge between $10 to $20 for equivalent transfers.

Favorable Exchange Rates

Most money transfer providers use the mid-market rate or interbank rate as the benchmark for their rates. For instance, Ria adds a margin of 1.5% to 2.5% above the mid-market rate. The competition charges up to 4% for exotic currencies.

This means you get more of the destination currency for a unit of the host currency. They have a price calculator on their website which makes it easier for you to work out the exchange rates based on the amount your sending.

Simple Transfer Set-Up

The account signup process is very simple and takes less than 10 minutes. When signing up on Ria Money Transfer, you first model your transfer, choose the transfer payment option and the payout option whether cash pickup, home delivery or bank deposit. 

Once you input the recipient's name, phone number, and physical address you can right away register as a new user. The transfer system will pick your details. That is all you need to do. 

Geographical Spread and Transfer Speed

Many online money transfer providers have made significant progress in establishing partnerships and pickup up locations in many countries. Ria has a network of 389,000 agents and partners in 150+ countries. This makes it easy for you to send money to your family and friends irrespective of their destination.

In November 2019, Ria Money Transfer and Arab National Bank (ANB) announced their partnership to facilitate money transfer services to Saudi Arabia. 

When sending money through debit or credit card, most money transfer providers take a day to deliver your money. On Ria Money Transfer, it takes only 15 minutes for the recipient to get the money. 

Regulation and Security

Ria Money Transfer is regulated in the United Kingdom by the Financial Conduct Authority (FCA), in the United States by the Financial Crimes Enforcement Network (FinCEN), and in Australia by Australian Securities and Investments Commission (ASIC). This ensures fair and honest dealings as well as the safety of customer's funds as they are kept separate from the company's funds.

In addition to the above advantages, Ria gives you 60+ currencies you can choose from when sending. Another huge plus is the fact that Ria has a mobile application available on both android and iOS platforms as a free download. You can use the app to send money on the go, check exchange rates, track transfers and locate Ria Money Transfer agents near you.