As we all know, the world is quickly shifting into online solutions for practically every part of our day-to-day lives. The way we transact and transfer money is no exemption. Ever since the rise of online solutions, online payments and money transfer services have been on the rise, showing no signs of slowing down.
The transaction value in terms of digital remittances will most likely reach a total of $106 billion in 2021. In comparison, that size trumps the annual GDP of over 130 nations in 2020. More small businesses, freelancers, and a large chunk of the general public all across various countries have started the online shift, and you’re likely considering it too for your business if you’re reading this article.
Of course, making the shift isn’t an instant decision. Since money transfers involve, well, money, people would want to be more cautious about the transition and know all significant considerations before choosing a money transfer provider they will stick with. Here are some considerations and tips when choosing a reliable money transfer provider for your business.
1. Know all your options
So you’re a business thinking about using an online payment transfer tool to pay overseas freelancers, purchase products, take payments from clients, or other forms of transactions, and you’re looking at your options. There are more than a handful of options you should be aware of today.
The number of available options for reliable payment transfers is close to a dozen at the least. Check out these payment gateway software examples from FinancesOnline. Before you land on one or two options, study each one closely and look at which one works best for your country. Not all options might work well with your nation. Some national bank systems might have restrictions for money transfers straight to an account, so take time to read on your options.
2. Consider transfer fees
One of the most critical factors for the best online money transfer services is the transfer fee associated with the service. Dealing with transfer fees is pretty much a given. But not all transfer fees are alike. Some are structured so that you pay less for larger transfers, and some might be more beneficial if you’re making small transfers.
Overall, however, the good news is that transfer fees have been dropping. This drop is primarily due to the rising number of competitors in the money transfer industry and the pressure from the G20 and the UN to make online transfers more affordable. Both have targeted average costs to the recipient to be 5% and 3%, respectively.
3. Study the transfer times
Another factor that businesses want to know before selecting online money transfer providers is how long it will take to transfer. For the longest time, sending international bank transfers was the best option, but it would take days or even weeks for money to arrive. Today, options like PayPal, Wise, Payoneer, XendPay, and other options can do it in less time. But transfer times do vary based on the service. Look into each one and select whichever works best for you. Note that faster transfer times aren’t always the best as these services can end up getting clogged on busy days.
4. Factor in customer service
The reality behind money transfers is that they don’t always go according to plan. When payments get held up or delayed, you’ll want a service that has a ready customer support system to help you iron out details for the transfer made to your business. The best money transfer app is whichever takes care of its clients best, so make sure to read up on all reviews you can find that line up what support experiences are like with various money transfer services.
Study what options you have for the service you’ll select for your business. At the bare minimum, they should have a knowledge base and email support. The best option would be a service with available chat support.
5. Prioritize security
Probably one of the most important decisions you’ll make when looking for the best way to transfer online internationally is to choose an option with the best security. People get scammed for money all the time, whether online or offline. While it’s highly recommended to act in wisdom and care when transferring money online, study all the security features of various options.
Choose a service that provides identity authentication at the very least when logging in or making transfers. Never select a payment service that doesn’t have PCI Compliance.
You Don’t Have to Stick with One
The million-dollar question on many people’s minds when selecting an online payment system is, “do I need to stick with just one?” The simplest answer to that is no. You don’t have to stick with just one. Suppose you’re looking for the best way to pay overseas freelancers, accept payments from clients, or any other case use. You can use multiple options if needed but have a system to organize and compare those payment channels to avoid confusion.
Studies predict that the number of users who perform online transfers will be more than 13 million by 2023. As that number continues to grow, more people will start making the shift to online payments too. So if you haven’t started yet, the best time to start is now if you don’t want to get left behind.