Nowadays, online money transfer trend is increasing day by day. The more the services are being used to send money globally, the more the industry is contributing to the economy.
This increasing trend has attracted individuals and business-people at a higher level, who are looking to send money to Ghana.
The Past of Money Transfer Services:
Consider you are living in the late 1700s. You want money transfer in Ghana where your friend has recently shifted.
The letter which showed your friend needs your financial support made you go to the post service.
The postal service used to include sending the money through roads; many distances were used to be covered via walking. Imagine the scenario.
This kind of transfer used to take months. Even the need of the friend, the relative or the receiver was not fulfilled.
Furthermore, the paperwork and documentation were laborious. There were other hidden charges except for the apparent fee.
The money transfer at that time was vigorous, back-breaking and exorbitant.
With the development of the internet, the money transfer service was emphasized, and here we are with the tremendous impacting economy’s part.
What’s now in Money Transfer?
In some years, the companies, industries, governmental organizations, and the public have used the faster ways of money transfer. 10–12% growth can be seen every year.
The transactions that the larger levels of organizations make through banks or online services are adding a big to the country’s treasury.
Now the industries and organizations have even direct connections with the international market.
In this way, they are not obliged to pay the fee associated with the medium. According to Mauro, 4.8 trillion dollars are exchanged every day.
Money Transfer Operators
The IMF defines a money transfer operator as the organization that works through a bank or other service to transfer the funds.
They provide a medium for international level transactions. The money transfer service providers work by the exchange of information between the two countries.
The sending country sends the information to the recipient’s country. The recipient’s country gives the capital to the receiver.
Other ways can be through a bank. The money transfer operator often issues a notification to the bank to transfer the money to the recipient’s country.
In this, the bank gives the capital, but the overall manager is the money transfer operator.
Remittances are the other name for the money transfer. Personal payment is money transfer through personal accounts.
They do not inquire about the source of money as such. World Bank data suggests that in 2016, 530 billion dollars’ remittances were done. The global market share has increased to almost 10%.
The Competition in Online Money Transfer
The competition between various organizations has increased significantly.
The more money transfer service providers are coming in the market, the more ease to the public is coming.
Sort of the ease is promotional offers. Some operators offer a few free transactions, but others provide low commission and better exchange rates.
Some provide faster transfers, and others provide better security. All of them create their customers.
Search engines make relevant data accessible to the public. The fee being charged is mostly 3 to 5%.
The banks are facing the most pressure. The lowering of the fee is a problem for banks as they can face loss.
At present, direct transfer from banks is expensive as compared to the money transfer services available online.
Money Sending Trend
According to a survey held in 2016, the most significant money sent was by the USA, followed by Saudi Arabia.
Others were China, Switzerland, and Germany. The top money receiver countries were India, China, Mexico, and the Philippines. Surprisingly, China is among both.
The increase and decrease in the remittance service utilization determine that the industry is still in the growth phase and increasing every year.
The Online Money Transfer Services
Money transfer operators commonly being practised are Western Union, PayPal, Money Gram, ACE Money Transfer, and Transfer Wise.
- Western Union is globally the most used service. It provides almost half of the total remittance market.
- Western Union operates through the branches available worldwide.
- Their customers always get a code for the money transfer.
- The person then shares this to the receiver and the receiver by using the code gets the money in hand.
- The services offered include personal transfers, payroll services, prepaid cards, market place services, and corporate services.
- PayPal is not only recommended to send money online, but it is also widely used for online payments such as online shopping.
- Xoom is the service operated by PayPal to send money quickly online.
- Xoom provides a personal FX transfer service. Xoom is in the growth phase and is being used internationally.
- Soon, it will be a great source of the country’s economy.
- MoneyGram is a widely accepted and trusted way of money transfer.
- MoneyGram provides the facility of personal transfer and prepaid cards.
- MoneyGram, according to some researches, stands at number 2 in popularity, definitely after Western Union.
- It provides the option to receive money and cash pickups.
- MoneyGram works through agents, and 310000 agents are present worldwide.
- Over 150 countries have a network of MoneyGram.
- ACE Money Transfer is the money transfer service, working in over 200 countries.
- The procedure includes making an account and entering the personal details.
- After the details, if you want to send the money.
- Select the country and choose the transfer option and enter credit or debit card details.
- You are done sending the money to any desirable place in the world.
- This service provides better protection, and also it works generally in seconds.
- The service is linked to banks of the respective countries.
- Some banks and money transfer companies are connected with ACE Money Transfer to send money to Ghana online.
- Transfer Wise is a private company that originated from Estonia?
- Transfer Wise attracts the customers due to its low fee. It is an electronic transfer of money.
The Result is Increase in Money Transfer Business
There are just a few ways to increase the money transfer business. Gaining the trust of the customers is crucial.
Proper advertising is always necessary for increasing income. Better security provision, quick transfers, and charging a low fee can highly potentiate prospective customers.