When you send and receive international payments using traditional banking methods, the funds will take time to be credited into the recipient’s account. If you don’t need to send payment to a bank account, to save time, you can use alternative payment methods. Many people are not aware that there are other ways to make cross-border transactions without the downside of bank-to-bank transfers.
When transactions take long, it affects the growth of the economy. Money has to exchange hands fast for people to have the income that they need. For example, when a purchase for heavy equipment is made, it won’t be released until the down-payment has cleared.
We used to pay using checks. If a check is crossed and deposited, it takes time to clear. We can send checks internationally yet at times, the receiver has to find a correspondent bank to deposit it in. The difficulties arise especially if the person has no account in that correspondent bank. If they deposit it into their bank account, it still will take time to clear. Paying by check is ideal for local transactions, but there is still that clearing time.
The time delays
Sometimes, people use checks to delay payments. Checks can be post-dated so that they can manage their funds. Checks are commonly released on Fridays, making it impossible to reach cut-off clearing time until Monday. This payment system does have the advantage of being a credit line but slows down the economy.
Credit card payments
To manage your money, you can choose to make credit card payments. The credit will help you make time for your income to come in to pay back the loan. Credit card payments clear instantly and can be used for cross-border payments.
You can send and receive funds via money transfer agencies. These wire transfer services have remittance offices all over the world. The remittance is sent instantly or within 24 hours. You need to go to their office to send the funds. The recipient has to cash out at one of the money transfer agencies in their area.
The convenience of using a mobile app for peer-to-peer funds transfers has distinct advantages such as instant remittance. The most popular peer-to-peer transfer app is PayPal but you have to pay for transaction fees. There is an alternative peer-to-peer app that you can use to send money for free. This app is the one that was created by a money services company for the integration of their advanced payment solutions.
To increase the speed
Nothing beats instant remittance. When you see the funds credited to your account right after being informed that it has been sent, it warms your heart as that’ll fill your pocket. Even the sender feels good about speedy transactions as they do want to know that their funds have been received. Though there are instant remittance agencies worldwide, these can’t be faster than when you use online payment services.
When you want a speedy cross-border transaction, all you have to do is download one of the best money services app.