Are you unsure which money transfer app is best for you? There are many things to take into consideration.
Transferring money to someone is something that most people will need to do at one time or another. Unfortunately, transferring money can get expensive fast – especially when it comes to international transfers. Money transfer apps offer new ways to move money at a low cost.
7 Best Money Transfer Apps to Meet Your Needs
Many money transfer apps are available that anyone can use. However, it is important to know which ones will be most suitable for your needs. Here are the top money transfer apps along with their key characteristics.
OFX is the best money transfer app to send large amounts of money overseas. They not only have a large list of countries you can send money to in different currencies but also many other useful tools. You can lock-in the best exchange rate on the date you transfer with a live currency converter. There is no limit to how many transfers you can make. However, they do have a $1,000 minimum transfer, so it's best to use this app for larger international money transfers. Although their fees can vary, they typically charge less than 2% for currency exchange rates.
Paypal PYPL is a well-known and trusted service. Because it's been around longer than most other money transfer apps, Paypal has an extensive network of countries that you can send to and it's secure. This security comes at a cost. Paypal charges a 30% fee and 2.9% for debit or credit transactions within the U.S. International sending? Sending to Canada and Europe costs $2.99 plus the 2.9% reduction. Other countries cost $4.99. The fixed fee varies from one country to the next. PayPal is a great option for sending money to remote areas you might not otherwise be able to.
3. Square's Cash App
Square's SQ cash app is a fast and simple app that allows you to split restaurant bills or pay your apartment utilities. Peer-to-peer transfers are free and there are no transaction fees. If you send money to someone, they don't need a Cash account. Even a web page can be created that allows you to receive free payments from others. This money transfer app is by far the easiest to use of all the ones available.
TransferWise, like OFX, is a great choice for those who wish to transfer money internationally to their family, friends or businesses. You can transfer money to a lesser number of countries than OFX, and it takes up to three days for your funds to be transferred. Their transaction fees, currently at 0.7%, are lower than banks and their currency conversion rates can be guaranteed for up to 28 hours. The advantage they have over OFX is their lack of minimum transfers. This allows you to send smaller amounts of money, if necessary.
Like Square's Cash App, Venmo was designed for peer-to-peer payments. Venmo is a popular cash transfer app due to its ease-of-use and the ability to make free transfers, but also for its unique social aspect. You can connect to Facebook FB or your contacts on your phone to transfer money to friends and family. You can also comment or like other people's transactions. You don't want transactions to be made public. It's possible. There are many privacy settings that can be customized in the app. While Venmo is free for most transfers, it's important to note that there is a credit card transfer fee of 3%.
WorldRemit can be used to transfer smaller amounts of money between people all over the globe. This app is easy to use because of its large list of countries that qualify, the low fees and the variety of ways recipients can access their money. They don't require a minimum transfer amount, which makes them ideal for international transfers between friends and family. WorldRemit's fast transaction speed is what really makes it stand out. International cash transfers can be processed immediately. WorldRemit doesn't offer the most advanced features as other international money transfer apps, but its simplicity may appeal to some.
Zelle, another app available for peer-to-peer money transfers, is also free. The app is limited in that you must have a U.S. bank account to send money. The transaction processing times can be slower than those of other peer-to–peer money transfer apps. The transaction may take up to three business days to complete if the recipient does not have a Zelle account.
How to Choose a Money Transfer App
Money transfer apps are becoming very popular due to their ease of use and affordability. This high adoption rate has created a saturated market. You'll find a seemingly infinite number of apps in your phone's app store.
It is important to remember that every app has its own characteristics and qualities that are better suited for certain types of transactions. Before you choose an app, here are some things to keep in mind.
- Transfer speedYou want to transfer money as quickly and easily as possible. Make sure you look at the average time it takes for these apps to move money. Transaction speeds can vary between apps, so you want your money to get there on time.
- Your Geographic LocationIt is important to think about where you live and where your money will be sent. Some apps do not allow international transfers or charge exorbitant fees. This can also impact security. Security issues can be a problem with some money transfer apps, especially when you're transferring funds overseas. It is important that you ensure your chosen app can transfer funds internationally.
- Quantity of TransfersIt is important to consider how much money you plan on transferring at once. There are many apps that limit the amount you can send at one time. Others have limits on how much you can send over the course of a week, month, or year. Some apps will charge a percentage for what you send, which is not ideal for large amounts of money.
- Who are you transferring to:Consider who you're downloading the app for. Who will you send money to frequently? What are your plans for the app? Money transfer apps can be used to send cash between friends. You might consider apps with protections for money transfers to strangers.
Why use a money transfer app?
Money transfer apps, also known as peer to peer payments, allow you to send cash almost instantly from one place to the next. This means that the next time you and a friend decide to split your happy hour bar tab, you don't need to worry about counting out cash, digging out your checkbook, or having an awkward “I'll get you next time” conversation. You can instead use your smartphone to initiate a transfer from either your bank or credit cards. These transfers can be charged a fee or completely free depending on the app you use.