Online Money Transfers vs Bank Transfers: Which One’s Better?

People rely on public or private banks because they have been around forever and are highly regulated institutions that offer security and reliability.

But in the last decade, more and more people have been moving towards online remittance providers to send money overseas. While online remittance providers are still new compared to banks, they’ve managed to capture a sizable share of the market in a brief period.

Naturally, some people feel a bit confused about choosing the right option for international transfers. If you’re facing a similar dilemma, keep reading this article, and you’ll likely obtain a clearer view of how bank transfers measure against online money transfers.

Fees

Among the biggest deciding factors in choosing a remittance provider is to find out how much they charge. If you wire funds via a bank to another country, you’ll usually have to pay 10% of the total transfer or £40.

However, you’ll pay significantly less with online money transfers because online remittance providers have lower operating costs due to the utilisation of technology and don’t need to charge exorbitant fees.

Exchange Rates

You cannot discuss international money transfers without mentioning exchange rates. Banks offer uncompetitive currency exchanges rates. It’s almost as if they’re charging their customers an interest rate.

A few online remittance providers consistently offer sensible and highly competitive rates across all currencies. Most remittance providers only provide such rates for a handful of countries, but a few providers like Lycaremit are known for their favourable rates to dozens of countries.

Speed

Since banks are heavily regulated and use intermediary banks to transfer money, it could take up to seven days for the funds to arrive in another country. But with online money transfers, you won’t have that problem because they’ll complete the transfer within three days.

Security

Banks and online money transfer services offer highly secure methods to send money online via bank account details. Both transactions are conducted the same way – electronically.

This is probably the number one reason why banks are still popular. People trust them to keep their money and financial data secure. But it doesn’t mean that online remittance providers cannot protect your assets. Lycaremit uses the RSA 256-bit encryption technology to fully secure every transaction made on its platform.

Bottom Line

Banks are well-established and secure, but online money transfers have emerged as an effortless and affordable alternative, luring many away from banks. Of course, it’s important to note that not all of these providers offer such merits, and you must be quite careful whom you’re trusting with your hard-earned cash.

Ideally, the best money transfer companies charge minimum, transparent fees and offer sensible exchange rates. They also deliver the funds in a reasonable time frame, and they live up to their name by allowing you to send money all over the world. We at Lycaremit can offer you these benefits and more. Just register to see how easy it is to send money abroad.

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