When you need to make a money transfer, you may consider using your bank first. While banks are fast and convenient, they have fees and exchange rates. You should do your research on money transferring apps when keeping your options open. But you should consider the advantages and disadvantages of using money transferring apps since they come with their own fees and rates.
Advantages of Money Transferring Apps
That smartphone that you use can make you even savvier. Using money transferring apps can make it possible to send and receive money. You can even split the costs when enjoying a dinner or movie with your friends. Using money transferring service through your bank or credit union makes your money accessible. Here are three advantages of using money transfer apps.
1. Convenience
There may be times when you don’t have access to an ATM or the person you’re sending money to is on the other side of the world. There’s something convenience about using your smartphone to send money to family, friends, and other loved ones. This added convenience is helpful for splitting costs for rent or dinner with friends. Some services provide instant transfer if both parties have an account.
2. Budgeting
When you use the ATM, your receipt only shows one service that took place. How can keep track of that money when you don’t have access to your bank account or statement? A money transferring app can help you stick to your budget. You’re more likely to spend less with one.
Using money transferring app gives you more control of your bank activity. If you’re splitting the money with a friend or loved, you know how much you’re spending, or how much you’re making. It’s better to look at your bank statement rather than to read your receipt from your latest withdrawal.
3. Security
Sending money with a few taps sounds great but some people wonder if it’s safe. Each service comes with a high-level of security. If you’re using a bank or credit union, you’ll want to have the same security that your financial institution offers. There are services that offer their own security controls.
You’ll have some of the same security features that your financial institution offers. This will provide you with greater peace of mind. Not only will you be able to verify who you’re sending money to, but you can also verify your account. This ensures that you’re sending money to the right person.
Disadvantages of Money Transferring Apps
When you’re sending money overseas, you should keep the charges and fees in mind. Then you’ll want to compare those charges to the other services. You should also consider the time it takes for the person to receive the money since it depends on the bank and provider. There is a wide variety of money transferring services, some of which offer cheaper rates and greater convenience.
1. Fees & Rates
Most institutions have their own charges and fees, especially exchange rates when sending money overseas. Most of these fees and charges are hidden. Once you determine the hidden charge, you’ll notice that the total cost for the transfer is higher than you expected.
2. Amount of Time
Keep in mind that international transfers can take several days or weeks. It depends on the bank and the money transferring service that you use. Sometimes it can take longer for the recipient to receive money depending on the bank they use. Even some of the most major banks are slow when it comes to international money transfers.
3. Market Transparency
One the difference between banks and money transfer apps is transparency. Unlike most of the major banks, money transferring apps provide information on exchange rates on a daily basis so that the customer has more control over sending and transferring money. This level of transparency helps reduce the costs of international money transfers.
Banks only update their exchange rates whenever they feel like it and don’t consider the daily fluctuations due to the ever-changing market.
Find out if your bank or credit union has their own money transferring service. Then compare the charges and fees to your money transferring app. At the end of the day, using money transferring apps means you have more control over your money.
It’s perfect for sticking to your budget and keep expenses down. This allows you to make smart financial decisions so you can split costs efficiently with friends. You can also use money transfer apps for international transfers that are cheaper than most of the major banks.