One of the most common reasons for sending money online is to make a transfer to friends or family. You could be sending across a small sum to split the bill for a meal out, or paying your share of a deposit on a family vacation. Perhaps you’re sending money to a child on their travels around the world. Or maybe you live and work overseas and are regularly sending money back home to family. In this guide, we’ll be looking at the best way to send money to friends and family, whatever the reason.
In the past, it may have seemed like the only way to transfer money to your loved ones securely was via a bank. Banks are familiar, most of us already have a bank account, and they make sending money both domestically and internationally convenient because our details are already synced up.
However, in the past couple of decades, new and innovative companies have grown in popularity for making money transfers quicker, cheaper, and far more convenient. Below are some of the top ways to send money to friends and family for less.
Global remittances are thought to total A$755 billion in 2020 – a 7% decline from 2019 – according to the World Bank. The large majority of this sum comes from migrants sending regular payments back home to friends and family, providing vital support for healthcare, education, and other vital living essentials that many families in low to middle-income countries could not otherwise afford.
If you’re sending money to friends or a family member abroad, you have a few different options:
Money transfer operators are almost always the best way to securely send money to friends and family internationally.
These companies specialise in international transfers and therefore can send money overseas quicker and cheaper than most banks. A few of our top recommended money transfer operators perfect for sending money to friends and family abroad include:
WorldRemit has a large coverage network, supporting international transfers to over 150 countries in 90 different currencies.
The company markets itself specifically towards people looking for a simple and secure way to send money back home to friends and family and is particularly popular for its ability to send funds in the form of mobile money and air-time top-up as well as the more traditional bank transfer and cash delivery options. Mobile money and air-time top-ups are particularly popular modes of sending money in lower-income countries in which many families do not have access to a bank account.
With over 9 million customers worldwide, Wise is a major player in the international transfer space and for good reason. The company supports international transfers to over 50 countries worldwide, although this is often updated.
Wise is well known for its mission to make sending money abroad a more transparent process, with a promise to always be upfront about the costs associated with any transfer. The company offers international transfers at the mid-market rate with a fixed fee structure that is often far more competitive than banks.
One of the biggest advantages of using a money transfer operator for sending money abroad is these companies ability to offer international transfers for lower fees and more competitive exchange rates compared to traditional banks. Any reputable providers will show you up-front what fees you will be charged and how much your recipient will receive on the other end.
The precise details that you need will often depend on the provider you are using plus what payment/ delivery options you select, but an example of the details you may need to provide include:
Sending money to your friends and family with your bank via an international wire transfer is another option. This means of sending money can be convenient for sending funds, as you already have direct access to your money and only need to provide your recipient’s details to complete a transfer. If you want to know more about sending money to a foreign bank account, make sure to read our guide.
However, there are also some major disadvantages to sending money internationally via your bank compared to using a money transfer operator. These downsides include:
Overall, the best way to send money to friends and family is using a money transfer service such as WorldRemit, TransferWise, and PaySend.
Use our comparison engine to find an operator that supports international transfers from your sending country and find the best deal based on cost, speed, payment options, and more.
Things change slightly when sending money to friends and family in the same country as you. Most money transfer services are available only for international transfers, so you’ll need to consider the other options available to you for domestic transfers.
Providing a similar service to money transfer operators, peer-to-peer sending services offer a cheaper (often free) alternative to get your money to friends and family quickly and efficiently, often with extremely user-friendly apps for the ultimate convenience.
A couple of major players offering this service include:
The biggest advantages of using a peer-to-peer sending service are that these apps are convenient, free to use and get your money to your friends or family instantly.
Whilst some domestic bank transfers can have fees attached and take a couple of working days, peer-to-peer apps are ideal for sending smaller sums quickly without hassle.
Again, a bank transfer is another option available to you for sending money to friends and family. Bank transfers can be convenient if you don’t like using a third party to manage your money transfers, and in some cases can be processed on the same day you start the transfer.
Depending on where you are located, a domestic bank transfer may have fees or delays. In Australia, for example, most domestic bank transfers are made via the New Payments Platform, which is free and delivers most transfers to your recipient instantly.
In the US, domestic wire transfers can take a couple of working days, but it’s best to check your bank’s specific policies.
More than 29.6% of the Australian population are immigrants with permanent residence. With this accounting for more than 7.6 million of the country’s citizens, it’s of no surprise to hear that money transfers are big business in Australia. The government is even committed to reducing the cost of remittance transfers for its citizens. Australians send over A$10 billion each year to friends and family members living abroad (representing 0.1 per cent of the GDP). The top three countries that Australians typically send money to are China, India and Vietnam.
Whether you’re sending a small sum to a friend to cover your share of the bill, or looking for a reliable way to send regular payments back home to family abroad, finding a suitable transfer service to get your money to your recipient quickly and for minimum fees is a priority.
If you’re sending money abroad, we always recommend comparing international money transfer operators to find the best deal based on your specific transfer requirements.
Yasmin Purnell is a Content Writer and Editor for MoneyTransfers.com. Having over 5 years’ experience writing across a range of industries including finance, insurance, and travel, Yasmin joined the team with a mission to make international money transfers and everything they encompass accessible to all.