The Roots Of The Industry
These days we can enjoy easy and quick money transfers. The market is so satiated with different companies that we can pick the best rate, offer or remittance time. The whole process now takes minutes but it wasn’t always like that. The first-ever known transfer system is known as “Hawala” or “Hundi” in Persian or even “Xawala” in Somalian. The funds were moved through a chain of agents related by the family and community ties.
Everything changed with the introduction of metal money when the first financial institutions with fixed rates began to develop. Later the introduction of paper notes and track records facilitated the evolution of what we now know as a banking system.
Present Day Money Transferring
As the world is slowly turning more and more globalized and the migration rates are faster than ever the amount of money sent overseas is getting bigger and bigger. But that is not the only reason why money transferring services thrive:
- Family living abroad. Think about the millions of seasonal workers in Europe and Asia. They are making pretty good money thus remitting significant amounts on a regular basis.
- Investments. Foreign developing economies look very lucrative for individuals looking to find ideas worth investing in.
- Vacations. Money transfers can also be used for recreational purposes like paying rent or even a mortgage for some holiday property.
- Education. Getting a diploma abroad is really popular with individuals willing to get away from home.
- Bills. If you own an overseas property you have to pay for the housing bills and/or the mortgage.
- Gambling. This is a fresh trend. One of the most popular funds transferring systems in the world like WebMoney now also supports online gamblers resulting in the list of WebMoney casino sites with a lot of different services and perks as anonymity and such. Now you do not have to leave any financial information online.
If you are looking for the easiest cheapest option utilize your Smartphone and search for some popular remittance apps. But for this, the person you’re sending the funds to should also be tech-savvy and able to utilize the same app. In case you need something more common ask your bank about the remitting options that they have. Most of them can offer you a P2P aka person to person service allowing you to send money for free.
Plus you still have a more traditional option like a simple check or using a remittance agent that will receive and pass the funds on to the end target. Although the most traditional ones when resorting to these two methods make sure you are totally safe and are not getting scammed.
The Future Of Money Transfers
The cryptocurrencies are a brand new trend for money transfers. They are not convenient for an array of reasons. The traditional flat currency like Euros/Dollars/Pounds etc has to be present at either end. Plus you have to keep in mind the fluctuating nature of cryptocurrencies. The P2P services are also on the rise being popular for smaller remittances as you can only send a certain limited amount of money. Keep in mind that a higher amount will also require additional IDs and more rigorous checks.
Fintechs come in handy utilizing technologies in order to create the most convenient money remittance networks. Brand new start-ups utilize the discreteness of cryptocurrency with the convenience of P2P and as time goes on we will see financial and IT spheres merging together more and more.
The latest 2015 research has found that some 250 mln workers globally had to move in order to find better job prospects. The numbers will continue to grow following the international trends thus the industry will get even bigger. The existing transfer systems will continue evolving and we might also see some brand new names emerging on the scene.
WebMoney as a current transferring leader utilizes the latest blockchain technologies together with safety, blazing speed, and convenience. This remittance system does not use credit cards rather its own units. The various types of digital purses are all equivalent to a certain currency. WebMoney funds can be accessed through the company’s prepaid cards as well as wire transfers, cash points or exchange offices. The units are also accepted as a payment method in a number of online stores and services. The money is always transferred instantly for some 0.8% commission.