Introduction
According to the UN World Migration Report, in 2020 over 281 million people around the Globe were living outside their birth country, and the number is steadily growing. The same year international remittances reached an unprecedented $702 billion, and even the Covid pandemic did not significantly drop these volumes.
With the high demand for international money transfers, existing remittance solutions are many. Are they all not only effective but also affordable?
Inaccessible to those who need it most
Undoubtedly, a large part of those transactions is addressed to the families back at home. But when it comes to cross-border remittance, the fees may be at times impracticable for the sending party. Let’s have a look at some cross-border payment solutions.
Bank Transfers
The most conventional way to send money is to do it via your bank.
If you live in the European Union and wish to make a transfer to another European bank, then be assured that you will be charged the same fee as you would for a national transaction, provided that your transfer does not exceed €50,000.
Now, what happens to the remittance fees when you transfer money outside of the EU? To transfer money to someone outside the European Economic Area fees vary depending on the financial institution, but banks may charge a minimum of €20 and all the way to €500. Made a mistake in the recipient’s details? Prepare to be charged €25-30. Is there any information you would like to change after you have submitted your transfer? Fork out another €60 to correct it.
Financial Services Companies
Well-established companies such as Western Union or MoneyGram facilitate cross-border remittance and are largely popular across the Globe. They offer a number of ways to send money internationally: you can use a debit/credit card, bank account or cash to send and receive money. These options are not universal, however, and may not be available in your country.
Renowned as they are, these companies cannot always offer a cheap way to transfer money abroad. Bank transfers start with €5 within Europe and €7 to the neighbouring regions if you choose to use your bank account. Choose your credit card, and see the remittance fees soar to €21 for a €500 transfer, and the fees increase with the transfer amount (These fees are indicative and may vary depending on the sender’s and recipient’s countries and chosen sending and delivery methods).
Be aware, that for a lot of destinations cash pay-outs are the only available delivery method, meaning that the recipient will need to go to a shop to get the money.
Digital payment services
A new but increasingly popular way to transfer money is to do it online. According to Eurostat, over 92% of European households have internet access, meaning that it is much easier and faster to send money online than go to money transfer companies’ offices. Modern technology in combination with the demand for digital money transfers pushed by the pandemic has boosted the online platforms that offer competitive prices for those who aim to send money online. The challenge, though, is to find an online service you can trust that will provide you with an easy, quick and cheap service.
How to avoid sky-high remittance costs due to fees
Faced with hyperinflation and economic uncertainty, can we afford to pay sky-high remittance fees when our loved ones may be in need of support? Moreover, do we have to pay so much? The answer is no.
Profee is an online platform that facilitates international card-to-card cross-border remittance at market-beating speed and cost.
Is it reliable? Profee is operated by a European-licensed EMI. Compliant with the European regulations and PCI DSS certified, we apply multiple means to secure your personal data.
Is it simple? As simple as it gets. Take a minute to download the Profee app (or use the mobile-friendly web version), a minute to register and a minute to enter the details of your and the recipient’s credit/debit card.
Is it fast? In most cases, funds are delivered in minutes.
Is it cheap? Whether you want to send €100, €500, or €1.000, the transaction fee will not exceed €1!
All of this, anytime, anywhere. Read more on how to transfer money online with Profee in our blog.
Conclusion
Cross-border remittance is a vital service for millions of people worldwide. Unfortunately, it is not always easy to find a solution that meets all of your requirements, and when you do, remittance fees may make it inaccessible or challenging for your budget. But it must not be this way.
Digital payment services stand up to the classic cross-border payment solutions. Sending money across countries and continents can be cheap and instant. Why fill in lengthy bank account details and pay hefty fees, when you can use credit and debit cards to send and receive money for as little as €1?
Instant and cheap online money transfers accessible to everyone are available on www.profee.com and Android and iOS Profee app.
