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Everything to Know About Online Money Transfers

Everything to Know About Online Money Transfers

29 Jul 2022

Grocery shopping, buying tickets, ordering food, mobile top-ups and bill payments, and much more - digitised solutions have eased everything for us. Online money transfers have become so integral to our lives that life seems hollow without this facility. Imagine a day in your life without the requisite technology that helps you move money, unlike the conventional ways. 

Will it not be difficult for you? This need gets more intense for the expatriates from a developing country with limited resources like India, who go to developed countries to earn and send money to India

Past to Present - A Brief Overview

Pick a time in history or now, and you will realise that the world has always remained divided into two halves – developed and developing. In the past, the concept of development was confined mainly to having fertile land with easy access to potable water to grow crops. 

People would move around from place to place in search of these two basic requirements and settle down wherever they would find them to live a somehow prosperous life.

However, this entire scenario changed with every moon. Today, it is different from what it was like in the past, with one need remaining constant – the search for better opportunities to earn a better and secure future financially. 

Now, there are many countries in the world like India whose people suffer financially due to poverty and lack of employment opportunities. These people go to developed countries to earn remittances and support their families financially.

Looking at the Indian economy is imperative here for a better perspective. 

Indian Economy at a Glance

  • India is the 5th largest economy in the world, with a nominal Gross Domestic Product (GDP) of $3.535 trillion.
  • It is the 3rd largest economy with a Purchasing Power Parity (PPP) of $11.745 trillion.
  • The GDP growth rate of India is expected to be 8.2% in 2022
  • The inflation rate in India is around 6.95%
  • The overall unemployment rate in India is 7.83%

These figures show that India has a robust economy, but the ground reality is slightly different owing to its burgeoning population. 

Its vast population stresses the country’s resources leading to the migration of 2.5 million Indians every year, making it the world’s biggest annual migration, according to the Indian Ministry of External Affairs. These Non-Resident Indians (NRIs) settle down in developed countries for jobs. 

Online Money Transfers – Past

In the past, migrating from one place to another with the entire family was as tricky as it is today. Therefore, preferably, only one member of the family would travel to other countries to earn better support for the family financially. This pretty much remains the same today.

But, then, money transfer was physical, which the banks replaced through wire transfers. 

The advancement in technology and how banks operate facilitated the funds moving process from one place to another.  

The expatriates would send money across the borders through banks. This practise is still in vogue despite many online companies, including ACE Money Transfer, entering the international remittances market. For an expat willing to make an online money transfer to India, several options are available today, each with distinctive features and benefits.

Expatriates have faced the same problems of high fees, unfavourable currency exchange rates and sluggish movement of funds in transferring money through banks then and now. 

These issues remain intact despite the vast technological advancement in the past few decades.  

And expatriates would not have realised these issues whether it had been for the birth of several online money transfer companies. 

These companies have brought about a paradigm shift in how international money transfers work to favour expatriates. 

International Money Transfers – Present 

The expatriates around the world felt relieved as soon as some of the online money transfer companies started operating in the global remittances industry to facilitate the transfer of funds worldwide. 

There are several features that these companies offer which are not found in the banks, such as:

Low fee or minimum service charges 

Many companies charge a low fee for transferring funds across borders. The cost keeps fluctuating depending on the volume of the amount and the destination country. But, a few companies possess low fees to enable the remitters to send more to the intended recipient instead of paying the company more. For instance, if you send money to India online from abroad, you will find a bunch of service providers offering relatively low transfer fees.

Speed and efficiency

Unlike banks, online money transfer companies enable you to send money from one place to another in a few minutes, if no less. Most companies promise to deliver funds to the recipient within 24 hours. But a few companies can execute online money transfers in a matter of a second. For instance, ACE Money Transfer is one of the most trusted remittance service providers that process funds instantly for global money transfers.

Competitive currency exchange rates 

Many companies keep their currency exchange rates static for a day, at least if not more. On the other hand, some companies with higher rankings ensure that they link their currency exchange rates with the international market, where these rates keep fluctuating with each tick of the clock. This enables the remitters to remit funds when the currency exchange rates are most favourable and competitive.

Online money transfer through the international money transfer app

This is a facility that has eased online money transfers in unimaginable ways. These apps enable you to send money right from the middle of your comfort zone or even on the go. All you need to do to avail of this facility is to download and install a company's app and initiate, track and complete the transfer of funds internationally.

Impact of online money transfers on the remittance industry

The flow of remittances to Low- and Middle-Income Countries (LMICs) has increased to $589 in 2021, with a robust increase of 7.3%. Online money transfer companies like ACE and many others share a considerable part of the credit for revamping the entire process. 
Many companies and banks help you with your international money transfers. Which company or institution you choose for transferring funds must be based on determining your needs and requirements. If you are looking for the best way to send money to India, you may consider ACE Money Transfer, trusted by millions of expatriates.


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