How Technology is Disrupting Money Transfers — More Transparency and Lower Costs

Fast transfer of currencies across long distances has not always been the easy task it is today. And even though the industry has been completely revolutionized, there are plenty of currency transfer customers who haven’t gotten the memo.

In the old days, the only way to send currency across borders or over long distances was through the infrastructure of telegram companies. These companies spread out all over the globe in order to have a physical location wherever money might need to be sent. The process wasn’t very fast, it wasn’t very accurate, and it was very expensive. These century-old businesses are still operating today, and they have some of the best brand recognition of any currency transfer company. But in many cases, their services aren’t much improves than they were a generation ago, and they’re still among the most expensive you can find.

The alternative to these private companies is transferring currency through international banks. Banks have the infrastructure and the international presence to do this simply enough. But they also have shareholders to impress, so they charge more than the process is worth. For people who need to transfer money regularly, this is no solution at all.

Something had to change. The internet and mobile spheres helped cultivate agile new businesses organized to make currency transfer much more affordable and trustworthy. A quick search for “international currency comparison” will make it clear that it shouldn’t cost very much money to transfer money overseas in 2015, making the old guard of money transfer seem all the more antiquated. When you actually get in touch with one of the new generation of currency firms, you’ll see just how far this transparency extends.

The old way of setting up one of these deals takes a “take it or leave it” shape. Companies like Western Union position themselves in locations where people have no other options for currency transfer: prisons, airports, low income neighborhoods, etc. New companies don’t often have physical locations at all. They’re online, on your mobile device, and available over the phone. When you call one of these companies, you are assigned a dealer who works with you every time you call. It is (new) industry standard to provide customers like you with contracts that can lock down the most affordable exchange rates when they pop up. You can even haggle over the rate you are given!

You won’t get much or any of this from a big bank, or from one of the old school companies that transfer currency around the globe. That’s why the old companies spend so much money on advertising. If they had it their way, no one would know that there is a new model for this kind of service, locking them into terms and fees which are not in the best interest of the customer.

With so many excellent players in the game, there are affordable solutions for people sending small payments, regular mid-range payments, large payments for investment or property, and for just about every other purpose. Most companies favor one sort of company or another for their money transfers, but there’s something for everyone. Keep looking and you’ll find a money transfer company who can offer you excellent terms, prices, and transparency for your situation.

Top photo: epsos/Flickr

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