So many people need to send money abroad

Nowadays, more and more people send money abroad. Whether they are students studying abroad, expatriates working abroad or migrants living outside their home country.

How many people send money abroad ?

Today, according to the world bank, more than 250 million people live outside their homeland. Most, if not all, send money abroad either regularly or once from time to time or once when facing an urgent situation.

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It seems that some countries are more concerned than others. India, Mexico and Russia were the 3 biggest emigration countries of the world in 2013. These 3 countries combined 38 million people living outside their homeland in 2013.

How do people generally send money abroad ?

Based on the different sources on this topic, it still seems that today, to send money abroad, 90% of the total amount sent is sent from cash to cash. This represents a total amount of 540 billion dollars for the year 2015. People usually refer to dinosaurs on the market such as Western Union or MoneyGram. The later usually take minimum 30 € for each 300 € sent !

The good news is that the 10% remaining is sent by via online solutions which are far cheaper. Plus, the online market is going to triple in the next 10 years. To send money abroad, people will be able to use simple and  parent solutions. This will enable them to save a lot of time and money on each of their money transfers.

Quick tips and tricks to send money abroad

In order to make sure you maximize the amount of money the receiver receives when you send money abroad, your ought to go through the 2 following steps:

  • First, check the exchange rate evolution for the currencies concerned by your transfer. You can save between 1 & 5% of the amount transferred by doing so ! Moneytis can provide you another free & very interesting tool
  • Second, make sure you compare all the solutions available before sending your money. This must be done each time you want to trigger a transfer as the best solution can change every day!

Best apps to send money abroad

Name anything today, you can almost be sure that there is an app for this. Good news for us, there are many apps that enable you to send money abroad. We have reviewed them for you and selected the best ones.

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Best bank apps to send money abroad

Vemno: Probably the most popular app to send money abroad. So popular that there is even an expression for sending money via Vemno: “Vemno me!” Sending or receiving money has never been so easy with Vemno. You just need the recipient email or phone number. Note that if you use credit cards you’ll be charged 3%. The app automatically integrates your Facebook friends and phone contacts;

Bank of America (for US residents): Not only this app looks great but it also helps you save time when you need to send money abroad. Indeed thanks to the app you do not need to go to a branch anymore to make a transfer. The allows you to send money to anyone (non-customers as well) in a very secure way.

Best MTO apps to send money abroad

Transferwise

Transferwise is a peer-to-peer money transfer operator. It’s been created by one of Skype’s co-founder and is backed by Richard Branson himself. They charge very low fees on each transfer and claim to be 90% cheaper than any bank. The app lets you know how much money you saved using their service instead of your bank and is very easy to use. Note however that you will be restricted to send money abroad to Europe, USA and India.

World Remit

World Remit app is great in the sense that it allows you to send money abroad in many countries. They offer 110 destination and several ways to receive a transfer: mobile wallet, cash pick-up or bank account. The app is pleasant to use and secured by Norton, so pretty safe. It is a perfect choice for migrant workers.

Send money abroad as a French living in the USA

I’ve decided to share with you my experience as an expat who need to send money abroad, in my case from USA to France. The first job I found was in New York, I just had finished school and needed to pay back my student loan, so I needed to transfer USD to France.

How do you send money abroad?

Before leaving to the USA, I went to my bank in France, LCL, and asked them if they had a partnership with an American one so that I could easily set up a monthly transfer to pay back my loan. At that time they did not but told me that it would cost me nothing to send money abroad from the USA. I just had to do a wire transfer from my American bank to my French account.

It is exactly what I did the first month I arrived there and I can tell you that it was the last one! I ended up losing 10% of the amount I had sent. I sent $500 and received the equivalent of $450!

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Let me ask the right question now…

How do you send money abroad avoiding your bank? 🙂

You basically have 2 choices. You can go for high street operators such as Western Union or Moneygram. They are extremely famous worldwide as they have branches in almost every street corners. However they remain extremely expensive. You’ll be paying between 8 to 10% fees using their solution. Note that they do not guarantee your money, so if something wrong happen, it is very unlikely that you’ll see your money again. You can find their office in post offices or go to their websites as they now offer online money transfers. Personally I would not go for them to send money abroad.

Last but not least: you can use an online money transfer operator, peer-to-peer, such as Transferwise, World Remit or Azimo. Such actors recently appeared on the market and offer very competitive prices: very low fees (4% of the transaction maximum) and operate very quickly (you generally receive the money 2 to 3 days after it’s been sent). I have been using this kind of operator to send money abroad each month and I must say that I am extremely satisfied with any of them.

To conclude, if you need to send money abroad make sure you get all the information before choosing one operator.

Stay informed about the exchange rates with Forbes

Who send money internationally?

Nowadays almost everyone is in need to send money abroad. We don’t often think about that but international money transfers is a huge industry. Some people transfer money abroad on a regular basis (every month or even more often). For others they transfer at least once in a lifetime. Here is an overview of the different parties who commonly need to do international transfers.

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Overseas Workers send money internationally

Expatriates and Migrants are the ones who send the most of remittances. Many people work outside their home country. All these people send money back home. The population that sends the most of remittances are the mexicans. A lot of mexicans are in the United States. According to the World Bank they sent around 22 billions of $ in 2015 in Mexico. That’s huge. And they transfer their money regularly because they send back home almost all their revenues.

International students and their parents are the second category

It is easy today to study abroad. A large amount of money is sent to students abroad by their parents.

Businesses with foreign activities

Many companies do business abroad or have branches abroad and need to transfer money between subsidiaries. This is particularly the case for import/export companies and for big companies with branches in many countries. These companies need to be careful about money transfers as they often send large amount of money abroad.

Anyone who needs to send money internationally

Among people who needs to send money abroad there are also the owners and buyers of foreign properties abroad. Either they have to pay a large amount of money in foreign currencies or they need to receive a rent every month and to transfer it into the local currency. International volunteers also need to convert money as they are paid in the currency of their home country. Then we count many people who spend their retirement abroad, so they need to transfer their retirement pension funds every month into the currency of their ‘host’ country. At last anyone who needs to transfer money urgently to recipients abroad.

Now we can see the importance of money transfer and the huge industry it is. That’s why it is important to compare all the options in order to get the best rates for a transfer.

Send money internationally in 3 easy steps

You need to send money internationally and you don’t have the time to look everywhere to find the right information? We got you! Follow this three easy steps to transfer your money abroad in no time and at best conditions!

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Step 1: know the basics

If you want money internationally you have two options:

– Your Bank
– A money transfer company

If you want to send money internationally quickly and at best price, option A, your bank, is surely not the best solution. Making an international transfer will take up to 4 days and you will be charged a lot of fees ( transfer fee, exchange rate fee, withdrawal fee).

What leads up to the second option, the money transfer companies. Those companies offer in general good service with low fees & quick transfer but should as airlines depending where and when you fly, the rates can change and makes an airline right for one destination but not another.

Step 2: Know your needs

Before choosing one or another money transfer company, you need to determine precisely your needs by answering to yourself these questions:

From which country you want to send your money?

To which country you want to send your money?

How do you want to receive your money?

Do you need your money quickly or are you willing to wait a little bit more if it is cheaper?

Step 3: Pick up the best option & send your money internationally

Now that you are all clear about your needs, the best way to choose the best transfer money company is to use a comparison service. This service is totally free and 100% transparent. According to your criteria, the platform will show you the best companies to send your money internationally. Once your choice made, you will have to follow a short process such as choosing your payment method.

And here it is! You see, send money abroad it’s easy !