Over the years, a wire transfer has been a great way to transfer funds for different purposes. However, people have complained about the high fees associated with wire transfers. Thankfully, there are a few options at your disposal. If you’re trying to find electronic payment wire transfer alternatives, here are six you can consider.
TransferWise
This is a low-cost model of electronic money transfer for domestic and international use. The sender pays per transaction, and the company claims it has a “transparent pricing system.” There are additional fees charged for international features. When sending money through TransferWise, it takes one to four days before receiving it, just like a wire transfer. However, larger payments may sometimes be capped or canceled because of insufficient KYC verification.
Remitly
Remitly leverages digital channels, including the use of mobile phones, to send money domestically and internationally. It’s fast, less expensive, and more convenient for people who send money across borders, making it a good alternative for wire transfers. Payment reception varies within one business day (with an additional fee) or within three to five business days. However, it’s limited to personal funds transfers and can’t be used for business or commercial transfers.
PayPal and Other Online Money Transfers
In today’s digital economy, individuals and businesses want a quick and fast way to send funds or make payments without passing through third parties. Although there are several online payment methods to transfer money and make or receive payments, PayPal tops the list.
But PayPal charges both the sender and the receiver. Also, PayPal doesn’t offer cash pick-ups like Money Transfer or Western Union, and the receiver must also have a PayPal account. PayPal fees might be a little high for businesses. For example, for transfers up to $3,000, it charges 2.9%, plus $0.30 per transaction.
WorldRemit
People who’ve used Western Union and wire transfer before may be comfortable using WorldRemit, they share cash pick-up. With WorldRemit, you can send up to $10,000 to an individual account, depending on the currency. It also has low fees with good exchange rates for international funds transfers, making it a great alternative for wire transfers when you need cash pick-up.
Veem
All businesses and individuals want to easily pay contractors, vendors, and suppliers anywhere at any time. While wire transfers and financial technologies may reduce the time and location for funds transfer, Veem makes the process simple.
Veem is fast and designed to help businesses save time during funds transfers by simplifying how they send or receive payments. This applies to both their domestic and international services. It’s also cost-effective and flexible, with real-time tracking of payments. Payments with Veem typically take one to five business days, depending on their destination.
Zelle
Zelle is a relatively new player in the digital payment space, but is quickly rising in popularity. It’s based in the United States and operates digital payments. To access Zelle, users with a funded U.S. bank account use their email and a U.S.-based mobile number to enroll. They can do this through the Zelle app, or the bank provider’s Zelle electronic portal.
Once you have an account, you’ll only need the recipient’s phone number and email address to send funds quickly and easily. However, the recipient also needs a U.S.-based bank account, making it a U.S. only funds transfer service. Unlike other funds transfer platforms, Zelle doesn’t charge fees to send or receive funds. However, the bank may charge customers a fee for the funds’ access services.
Endnote
Wire transfers are quick, fast, and reliable, but they can be costly, or take time to go through Escrow or another third party. Businesses can use wire transfer alternatives to make or receive payments based on the one they can access easily.
