International Money Transfer vs Bank Transfer
With the advancements in financial technologies, there are now many different ways to transfer money internationally. Below we analyse international money transfer services vs. bank transfer according to a few key factors-
What You Need to Transfer Money
Anyone with a PayPal account can transfer money to around 190 countries as long as they have an email or phone number. However, the recipient would also need to open a free PayPal account to receive the money. More traditional money transfer services like Western Union can pay out the transferred amount in cas. Traditional banks usually use SWIFT networks in order to transfer money internationally. The recipient will need to have an account/ IBAN number, bank address, BIC/ SWIFT code, etc.
Conversion Rates and Transfer Fees
Usually, international money transfer services offer a fixed conversion rate at the time of transferring the money. They also tend to have a fixed transfer fee based on a range of fixed amounts. Bank transfers on the other hand use a variable conversion rate that is largely dependent on the recipient bank and the day transfer gets processed. They also usually charge a percentage of your transferred amount as transfer fees.
Convenience & Availability
By going to the website or using the app of an international money transfer provider, you can easily transfer money to global locations. However, not all service providers are available in all countries or locations. For availability, bank transfers are the best as they are capable of sending money to any bank with a SWIFT code. Some of the top banks now also offer the convenience of sending money online.