If you live in the diaspora, chances are that you will be sending money back home during the holiday season. There are many reasons why you do it; whether to celebrate with your family during the festive season, to pay for tuition for the new year for your kids, siblings or relatives, or to cover any investments made. What are some of the things you should be on the lookout for when deciding how to send money back home?
- Cost: Look out for the platform with the lowest cost. Watch out for those platforms that charge expensive transaction fees especially when you are sending small amounts of money.
- Ease of use: Look out for a platform that is easy to use. A mobile transfer app should be simple to use with no more than a 2-3 steps to send money. The easier a platform is, the more likely you are to keep coming back to use it.
- Fast: When sending money, look out for a platform that “pushes” the funds real time. You cannot afford to wait a few days to find out if your money was received on the other end. You want to know that the money has been received instantly.
- Secure: Look out for platforms that have a great track record when it comes to having secure systems. That way, you’re guaranteed that the personal information you share and the money that you send are kept safe and secure.
What are the different options when it comes to sending money back home?
- Wire transfer: There is no limit to how much you can send. However, the cost is fairly high (up to $50 per transaction). Funds are generally received the next business day.
- Traditional Money Transfer Operator (such as Western Union and Money gram): These are very well established in the market with a large branch network. Costs are fairly reasonable, averaging about $10 per transaction. Funds here are generally received the same business day (within a few hours).
- “Modern” Money Transfer Operator: These companies are newer in the market place, and funds are received instantly, in a matter of seconds. These companies generally do not charge a transaction fee as they make money on the currency conversion. However, they still tend to be the cheapest.